Crypto Valuations Poised to Rise as Networks Route Fees to Token Repurchases

Bitwise CIO Matt Hougan argues that crypto valuations are poised to rise as more networks route transaction fees towards token repurchases and burns. According to him, the market has not fully accounted for the growing link between protocol revenue and native tokens.

Hougan points out that outside of Bitcoin, an increasing share of activity is translating into revenue that can directly create buy-side pressure for tokens. He cites multiple DeFi and crypto-native projects that already use fees to reduce circulating supply.

Examples include Hyperliquid, Uniswap, and Aave, where revenue mechanisms are designed to reduce token supply. Hougan attributes the accelerating interest in revenue-linked token economics to a gradually more favorable regulatory landscape in the United States.