Crypto Revenue Valuations Could Double with Token Buybacks

Bitwise Chief Investment Officer (CIO) Matt Hougan believes that the valuations of certain revenue-generating crypto assets could potentially double in value.

This growth is attributed to protocols generating significant revenue and using it for token buybacks or burns, which has led to a new era where revenue has become a primary metric for valuations.

Hougan cited several examples of this trend, including Hyperliquid, which generated over $800 million in annualized revenue last year and allocated approximately 99% of its fee revenue to HYPE buybacks and burns.

The protocol's token, HYPE, has seen a significant amount of its supply burned since November 2024, with around $1.3 billion worth of tokens destroyed during this period.