Crypto Valuations Shift Towards Revenue-Driven Models

The crypto market is entering a new phase where revenue and returns to token holders will increasingly determine valuations, according to Bitwise Chief Investment Officer Matt Hougan.

This shift means that many crypto assets are currently undervalued, as the long-standing criticism that they generate little or no revenue becomes outdated.

The regulatory environment has changed in favor of revenue capture, with the SEC's defeat against Ripple in July 2023 and subsequent developments under Chair Paul Atkins creating a more favorable climate for crypto projects to distribute revenue to token holders.

Hyperliquid is a prime example of this new revenue-driven model, where approximately 99% of its fee revenue is reserved for buying HYPE on the open market and burning it, permanently reducing supply.

This approach has helped make HYPE one of the strongest-performing major crypto assets, with over $1.3 billion worth of tokens bought and burned since launch.