Crypto Valuations Could Double with Blockchain Fee Reform

Bitwise Asset Management's Chief Investment Officer (CIO) Matt Hougan believes that crypto valuations could double if blockchains reform their chain fees to provide buyback-like returns based on network activity.

Hougan cited Hyperliquid as a successful example, where the blockchain removes 4.8% of its maximum supply by destroying tokens and has seen an 84% price increase in the last 12 months.

Other major blockchains like Ethereum and Solana need to adapt their protocols to provide similar returns to holders, which could reshape the sector's valuations.

Solana recently failed to pass a fee restructure proposal that would have increased daily token burns, while Ethereum has multiple improvement proposals being evaluated.