DeFi Token Valuations Lag Behind Tokenomics Shifts

Bitwise Chief Investment Officer Matt Hougan says DeFi token valuations have not fully reflected changes in tokenomics. Hougan notes that Hyperliquid uses almost all of its platform revenue to buy back its token, a strategy that has been rewarded by the market.

Hougan points out that other DeFi projects are also making significant changes. Uniswap is increasing value capture for UNI holders, while Aave has eliminated the separation between its equity and token. Morpho and Chainlink are also improving their tokenomics.

According to Hougan, these changes have not yet been fully priced into the market, leaving some DeFi assets trading at relatively low valuations.