Crypto Valuations Could Double on Token Revenue, Says Bitwise CIO

Bitwise Chief Investment Officer Matt Hougan believes that cryptocurrency valuations could double if more projects link token value to protocol revenue. He pointed to five existing examples of this approach, including Hyperliquid, Uniswap, Aave, Pump.fun, and Lighter.

Hougan estimates that around 99% of Hyperliquid's fee revenue goes toward buying HYPE tokens and burning them from the supply. This setup is similar to stock buybacks in traditional finance, but with some key differences, such as token holders not carrying the same legal claims as company shareholders.

Uniswap has already burned around 7.5 million UNI tokens through protocol fees since December 2025, worth around $25.6 million based on figures in a proposal. Aave has also bought back over 205,000 AAVE tokens using $42 million in funding.

Hougan linked these shifts partly to a friendlier U.S. regulatory setting, pointing to the Ripple case and changes in SEC leadership as part of this trend. The SEC will hold a meeting on August 14 to discuss possible new rules for certain crypto asset offerings, but it's unclear whether these rules will directly address token revenue sharing.