Bitwise CIO Says Crypto Valuations Could Double as Protocols Link Revenue to Tokens

Crypto valuations could at least double as more protocols direct revenue toward token buybacks and burns, according to Bitwise Chief Investment Officer Matt Hougan. He argues that crypto assets outside Bitcoin are shifting into a revenue-driven market where network activity increasingly translates into token value, a shift he believes investors have yet to fully price in.

Revenue-Sharing Protocols Gain Momentum

Hougan pointed to platforms like Hyperliquid, Uniswap, Aave, Pump.fun and Lighter as early examples of protocols using generated fees to repurchase or remove tokens from circulation. He expects similar revenue-capture mechanisms to spread across decentralized finance applications and layer-1 networks within the next 12 to 24 months, potentially giving investors clearer valuation metrics, though he noted token holders still lack the legal claims shareholders have to cash flow.

Real Examples Show the Trend in Motion

Hyperliquid generated over 800 million dollars in revenue last year and uses roughly 99 percent of it to buy back and burn its HYPE token, including 141 million dollars directed toward buybacks in the second quarter alone. Uniswap activated a similar fee mechanism in December 2025 to fund UNI burns, while Aave’s decentralized autonomous organization has purchased more than 205,000 AAVE tokens over ten months, with plans for an automated buyback system.

Regulatory Shift Seen as a Key Driver

Hougan attributed the growing adoption of revenue-sharing models to a more favorable US regulatory environment, noting that many projects previously avoided such features due to securities-law concerns.