Token Buybacks Fail to Boost Price Floor Despite Rising Revenue

Token buybacks are on the rise in the crypto market, but the price floor remains elusive for most tokens. In an August 12 memo, Matt Hougan, chief investment officer at Bitwise, stated that most crypto tokens other than Bitcoin are undervalued.

Hougan believes that investors are not aware of how much revenue protocols pay back to holders. He cited Hyperliquid as a clear example, which has retired $1.3 billion of its HYPE token. If the trend continues, Hougan predicts that the market 'could see valuations double or more.'

Hougan stated that tokens are beginning to trade on revenue, just like equities and bonds. He tied his valuation claim to his belief that the link between protocol revenue and token price is strengthening.