Crypto Tokens Trading on Revenue as Hyperliquid Burns $1.3 Billion

The crypto market may see valuations double or more as tokens begin to trade on revenue, according to Bitwise's chief investment officer Matt Hougan. He cites Hyperliquid, which has burned $1.3 billion of its HYPE token by routing 99% of its fees into buybacks.

Hougan believes that the era of crypto where networks could scale significantly but tokens captured little value is over. Instead, tokens are now trading on revenue, similar to equities and bonds.

Hyperliquid generated $800 million in revenue last year and has been sending 99% of its fees to buy HYPE on the open market and burn it. Since its launch in November 2024, this has taken $1.3 billion out of supply permanently.