Crypto valuations could double as protocols link revenue to tokens: Bitwise CIO

Bitwise’s Matt Hougan said he expects revenue-capture mechanisms to spread across DeFi applications and layer-1 networks over the next 12 to 24 months.

Crypto valuations could at least double as protocols increasingly use revenue to fund token buybacks and burns, according to Bitwise chief investment officer Matt Hougan. 

On Wednesday, Hougan said crypto outside of Bitcoin is becoming a revenue-driven market in which network activity feeds into native-token value. He said investors have not priced in that change, leaving some crypto assets undervalued.

Hougan pointed to Hyperliquid, Uniswap, Aave, Pump.fun and Lighter, protocols that use fees to repurchase or remove tokens from circulation. He said he expects decentralized finance (DeFi) applications and layer-1 networks to adopt similar revenue-capture mechanisms over the next 12 to 24 months. 

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