Bitwise CIO Sees Crypto Valuations Doubling on Token Revenue Links

Decentralized finance protocols and Layer-1 networks have traditionally relied on governance rights, network utility and expectations of adoption to support token prices. A growing number are now directing fee revenue toward token buybacks and burns, creating a clearer link between operating income, token supply and investor value. The shift matters because it could give markets a more conventional framework for valuing crypto assets.

Bitwise Chief Investment Officer Matt Hougan said crypto valuations could double as more DeFi protocols and Layer-1 networks connect revenue to their tokens through buyback-and-burn programs. He argued that markets have yet to fully price in the transition toward revenue-driven token economics, leaving some assets undervalued. No specific dollar target or timetable was provided, but Hougan framed the potential doubling as a future re-rating if adoption of these mechanisms continues.