“The Value Equation Is Changing”: Bitwise CIO Flags a New Crypto Market Trend

TLDR

• Bitwise CIO Matt Hougan says protocol revenue is becoming a key valuation factor for crypto assets beyond Bitcoin.
• Hyperliquid has used nearly 99% of its fee revenue to buy and burn HYPE, totaling about $1.3 billion since launch.
• Uniswap, Aave, Pump.fun, and Lighter are also using token buybacks and burns to connect protocol activity with token supply.
• Hougan believes stronger revenue capture could support crypto market valuations doubling or more if investors recognize the shift.
• Hyperliquid’s Q2 revenue fell year over year, showing that protocol earnings can still fluctuate with trading activity.
• Layer 1 networks such as Solana and Aptos are changing fee and inflation models to increase token burns.

Bitwise CIO Matt Hougan says the crypto market may be mispricing assets outside Bitcoin (BTC) as more protocols link revenue to token demand. He argues that buybacks, burns, and fee changes give investors ways to compare token value with business activity.

Crypto Market Turns Toward Revenue-Based Token Models

Hougan said Hyperliquid offers a clear example. The protocol generated more than $800 million in revenue last year and used about 99% of fee revenue to buy and burn HYPE. Since HYPE launched in November 2024, Hyperliquid has bought and burned about $1.3 billion worth of tokens.

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