Bitwise CIO sees crypto valuations doubling on token revenue

Bitwise Chief Investment Officer Matt Hougan argued on Aug. 12 that crypto valuations outside Bitcoin could rise sharply as more protocols connect revenue generated by network activity to their native tokens. Summary Bitwise CIO Matt Hougan says stronger revenue capture could help crypto valuations double or more. Hyperliquid routes roughly 99% of fee revenue toward HYPE purchases through its Assistance Fund mechanism. Uniswap governance has funded about 7.5 million UNI burns through protocol fees since December 2025. Aave’s first ten months of buybacks acquired over 205,000 AAVE using $42 million in allocations. SEC commissioners will consider tailored crypto offering rules at an open meeting scheduled for Friday. In a memo, Hougan pointed to Hyperliquid, Uniswap, Aave, Pump.fun and Lighter as examples of projects using fees or other protocol revenue to finance token purchases or burns. He expects more DeFi applications and layer 1 networks to adopt similar structures over the next 12 to 24 months. His strongest forecast was explicitly conditional. Hougan wrote that “we could see valuations double or more” if his view that the link between protocol revenue and token value continue...