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

cointelegraph2026-08-13 tarihinde yayınlandı2026-08-13 tarihinde güncellendi

Özet

Bitwise CIO Matt Hougan believes crypto valuations could double as protocols increasingly use their revenue to fund token buybacks and burns. He argues that crypto beyond Bitcoin is transitioning to a revenue-driven market, where network activity directly boosts native token value, a shift he says investors have not yet fully priced in. Hougan cites protocols like Hyperliquid, Uniswap, Aave, Pump.fun, and Lighter as examples that use fees to repurchase or remove tokens from circulation. He expects more DeFi applications and layer-1 networks to adopt similar mechanisms in the next 12-24 months. This stronger link between protocol revenue and token value could provide conventional valuation metrics, though Hougan notes token holders lack the legal rights of traditional shareholders. He attributes this shift partly to a more permissive US regulatory environment, which is easing securities-law concerns that previously deterred such features.

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.

Stronger links between protocol revenue and token value could give investors conventional valuation metrics, Hougan said, adding that token holders lack shareholders’ legal claims to cash flow and that community-set tokenomics can change.

DeFi protocols turn fees into token demand

Hyperliquid, the decentralized exchange that generated over $800 million in revenue last year, uses about 99% of this to buy and burn HYPE. On Aug. 6, Hyperliquid reported $169 million in second-quarter revenue and directed $141 million toward HYPE buybacks.

Uniswap also linked revenue to its token after its “UNIfication” overhaul approved the activation of protocol fees to fund UNI burns on Dec.22, 2025. Under the mechanism, collected fees can be claimed by burning UNI, linking protocol activity to reductions in the token’s supply.

Related: Uniswap founder rejects claims v4 fees reduce LP earnings

Meanwhile, Aave DAO’s buyback program purchased more than 205,000 AAVE during its first 10 months. On June 25, Aave founder Stani Kulechov said the team was designing an automated, non-discretionary buyback mechanism.

“100% of Aave Protocol and GHO revenue goes to the $AAVE token. This was established in the Aave Will Win proposal,” Kulechov wrote.

Hougan attributed the shift to a more permissive regulatory environment in the US after years in which projects avoided revenue-sharing features over securities-law concerns. On Aug. 5, he said that regulatory guidance could allow crypto to keep expanding even without the CLARITY Act.

Magazine: Inside the fake crypto startup that fooled North Korean IT workers

İlgili Sorular

QWhat is the main reason Matt Hougan believes crypto valuations could double?

AMatt Hougan believes crypto valuations could at least double because protocols are increasingly using their revenue to fund token buybacks and burns, creating a stronger link between network activity and native-token value that he thinks the market hasn't fully priced in yet.

QWhich specific protocols does Hougan mention as examples of using fees for token repurchases or burns?

AHougan mentions Hyperliquid, Uniswap, Aave, Pump.fun, and Lighter as protocols that use fees to repurchase or remove tokens from circulation.

QHow does the Uniswap protocol plan to link its revenue to the UNI token starting in December 2025?

AFollowing its 'UNIfication' overhaul, the Uniswap protocol plans to activate protocol fees on December 22, 2025, which will be used to fund UNI token burns. Collected fees can be claimed by burning UNI, thereby linking protocol activity to a reduction in the token's supply.

QWhat percentage of Hyperliquid's revenue is directed towards buying and burning its HYPE token, and what was the Q2 2024 figure?

AHyperliquid uses about 99% of its revenue to buy and burn HYPE tokens. In the second quarter of 2024, it reported $169 million in revenue and directed $141 million of that towards HYPE buybacks.

QAccording to Hougan, what factor is enabling this shift toward revenue-sharing tokenomics that was previously avoided?

AHougan attributes this shift to a more permissive regulatory environment in the United States. For years, projects avoided revenue-sharing features due to securities-law concerns, but recent regulatory guidance has created more space for these mechanisms.

İlgili Okumalar

A7a5: Ruble Stablecoin Operations Increased 4.4 Times

Transaction volume for the ruble-pegged stablecoin A7A5 surged 4.4 times in less than a year, rising from 6,397 in July 2025 to 28,201 in June 2026, according to data from BitOK. The project peaked at 53,440 transactions in October 2025. Launched in Kyrgyzstan in February 2025 with a 1:1 peg to the Russian ruble, A7A5's market capitalization now exceeds 44 billion rubles. A key part of its infrastructure is the "Token" information system operator, part of the PSB (Promsvyazbank) group. By March 2026, A7A5 became the third-largest asset by transaction volume on the Tron network, trailing only the dollar stablecoins USDT and USDD. Company leadership attributes the growth to rising demand for a digital ruble instrument used for settlements and payments. They cite expected regulatory changes in Russia's digital asset space as a potential catalyst for further growth and market clarity. While cryptocurrency payments are banned domestically in Russia, they are permitted for foreign trade, a niche where A7A5 is seen as a developing tool for international settlements. The stablecoin's future depends on navigating regulatory shifts and maintaining participant trust, liquidity, and price stability amidst global competition from dollar-pegged stablecoins and the broader digital currency sector.

cryptonews.ru39 dk önce

A7a5: Ruble Stablecoin Operations Increased 4.4 Times

cryptonews.ru39 dk önce

U.S. Law Enforcement Organization Takes 'Neutral' Position on CLARITY Act

The U.S. National Sheriffs' Association (NSA) has dropped its opposition to the pending crypto market structure bill, the Clarity Act, shifting its official stance to "neutral." In a letter to Senate leaders, the NSA stated that significant legislative and stakeholder work has addressed many legal and enforcement concerns, and it will now allow the legislative process to proceed. The NSA had previously opposed provisions that exempt crypto mixers from certain registration requirements, arguing they could hinder law enforcement's ability to trace illicit transactions and recover funds for victims. The Clarity Act, passed by the House in July 2025, has faced hurdles in the Senate despite committee approvals in 2026. Concerns remain over stablecoin yields, tokenized equities, and potential conflicts of interest involving former President Trump and his family. A procedural vote is scheduled for September 15. Meanwhile, U.S. regulators like the SEC and CFTC have indicated they will step in to regulate cryptocurrencies if Congress fails to pass the market structure legislation.

cryptonews.ru39 dk önce

U.S. Law Enforcement Organization Takes 'Neutral' Position on CLARITY Act

cryptonews.ru39 dk önce

FATF Warns of Growing Role of Stablecoins in 'Digital Hawala'

In a new report, the Financial Action Task Force (FATF) warns that traditional informal financial networks, such as hawala, are increasingly using cryptocurrencies, including stablecoins, for money laundering. This evolving method is termed "digital hawala." A survey across 46 jurisdictions revealed nearly 70% of respondents noted these networks adopting new technologies, such as encrypted messengers, social media promotion, and reduced cash use. Clients of illegal banking are increasingly using bank transfers, fintech apps, instant payment systems, crypto platforms, and stablecoins like USDT, USDC, and DAI to mitigate volatility. Over 80% of respondents identified hawala-type systems as a primary channel for professional money laundering. The report states that digital tools can enhance the efficiency of these activities, aid in concealing funds, and expand the networks' geographic reach. FATF has previously called for tighter controls on stablecoins, noting in a March report that they accounted for up to 84% of illegal crypto transactions in 2025. It highlighted that peer-to-peer transfers between non-custodial wallets bypass anti-money laundering systems. The Bank of Russia has emphasized that its developing regulations for the crypto market are aligned with FATF recommendations.

cryptonews.ru41 dk önce

FATF Warns of Growing Role of Stablecoins in 'Digital Hawala'

cryptonews.ru41 dk önce

QuFi Launches Post-Quantum Verification Platform with Proof on Bitcoin Testnet

QuFi Network, a post-quantum infrastructure company, has launched a verification platform designed to protect digital assets from future quantum computing threats without modifying existing blockchain networks. The platform separates verification from settlement, using a decentralized node network and post-quantum cryptography to validate transactions before they are processed on established blockchains. As a proof of concept, QuFi introduced uBTC, which applies this system to Bitcoin and operates on Bitcoin's Testnet4. It verifies BTC collateral and generates cryptographic proofs for value transfers, with final settlement occurring as standard Bitcoin transactions. The platform utilizes three post-quantum cryptographic standards—ML-DSA-65, SLH-DSA, and ML-KEM-1024—for digital signatures and key exchange. The external verification layer aims to avoid the increased storage, bandwidth, and computational demands that could come from directly integrating larger post-quantum signatures into individual blockchains. This launch aligns with growing industry efforts to enhance quantum resistance, including recent initiatives from StarkWare, a European pilot project testing similar standards, and ongoing protocol-level research by Bitcoin developers exploring options like the SHRINCS signature scheme.

cryptonews.ru41 dk önce

QuFi Launches Post-Quantum Verification Platform with Proof on Bitcoin Testnet

cryptonews.ru41 dk önce

Ena Rebounds Sharply Following Ethena Foundation's Reorganization Plans

The cryptocurrency ENA (Ethena's token) experienced a sharp rebound following reorganization plans announced by the Ethena Foundation. The token gained over 110% from the start of Q3, with an 86% market cap surge in August, recovering from a prolonged bearish period that saw its price drop to around $0.07. The primary catalysts for the rally were the Foundation's restructuring proposals, which included: canceling monthly token unlocks (with a major unlock scheduled for early October), buying out shares from early investors like Galaxy Digital and Dragonfly Capital, and launching a "Fee Switch" mechanism directing 95% of protocol revenue to buy back ENA tokens. These measures are expected to reduce selling pressure and create additional buy-side demand. The beta launch of the Ethena Pay payment application in 48 countries also provided positive sentiment. Technically, if the upward trend continues, the next targets for buyers are the Fibonacci 23.6% retracement level near $0.26, followed by a potential move toward the $0.37 zone. A key bullish signal would be a sustained break above the 200-day moving average. The article clarifies that in the crypto context, ENA is a token ticker, not related to other entities like the Emergency Nurses Association. The recent growth is attributed to reduced unlock pressure, planned token buybacks, and new product launches, though future price action depends on breaking key resistance levels.

cryptonews.ru51 dk önce

Ena Rebounds Sharply Following Ethena Foundation's Reorganization Plans

cryptonews.ru51 dk önce

İşlemler

Spot