Hougan Sees Double in Crypto Valuations with Blockchain Buybacks

Bitwise Asset Management's Chief Investment Officer (CIO) Matt Hougan believes that crypto valuations could double if major blockchains like Ethereum and Solana adapt their protocols to perform buybacks that benefit holders of their coin.

Hougan cites Hyperliquid as an example of a successful blockchain. In the second quarter, it brought in $169 million in revenue from traders using its exchange and then automatically passed $141 million through to a fund that buys its coin on the open market and permanently destroys it.

Other blockchains like Ethereum and Solana have similar functions, but they don't work as well as Hyperliquid's when it comes to providing holders with a return mechanically linked to network activity. Fixing this could trigger a favorable revaluation, according to Hougan.