Crypto Market Shifted Toward Revenue-Driven Models, Says Bitwise CIO

Bitwise CIO Matt Hougan believes that the current crypto market is 'very cheap,' and not just because of its low prices. According to Hougan, the market is undergoing a structural shift toward a revenue-driven model, where value accrues to token holders through mechanisms like buybacks and dividends.

Hougan pointed to several examples, including Hyperliquid's HYPE token, which uses trading fees to buy back and burn its native token. He also noted that other popular projects like Uniswap (UNI), Aave (AAVE), and Solana (SOL) are moving in a similar direction.

Hougan argued that if his view is correct, valuations could double or more as the market catches up to reality. He also suggested that investors should consider allocating 5% of their portfolio to crypto, citing Bitwise's analysis that shows this allocation can enhance returns without significantly increasing volatility.