Bitwise Chief Investment Officer Matt Hougan said crypto valuations could at least double as more protocols use revenue to fund token buybacks and burns, a shift that may leave many assets undervalued.

Hougan noted that networks such as Hyperliquid, Uniswap, Aave, Pump.fun and Lighter have linked protocol fees to native token purchases or removals, and he expects decentralized finance and layer‑1 platforms to adopt similar revenue‑capture mechanisms within the next 12 to 24 months.

Hyperliquid reported $800 million in annual revenue and used about 99 percent of it to buy and burn its HYPE token; in the second quarter it generated $169 million and allocated $141 million to HYPE buybacks. Uniswap introduced protocol fees that can be used to burn UNI tokens after its “UNIfication” upgrade, approved on Dec. 22 2025. Aave’s DAO purchased more than 205,000 AAVE tokens in its first ten months, and founder Stani Kulechov said the protocol’s revenue is directed entirely to the AAVE token, with an automated buyback mechanism under development.

Hougan attributed the trend to a more permissive regulatory environment in the United States, which may allow revenue‑sharing features to expand even without the proposed CLARITY Act.

The development could give investors valuation metrics similar to those used for traditional companies, though token holders retain community‑set tokenomics rather than shareholder rights. The timeline for broader adoption remains uncertain.