Bitwise Chief Investment Officer Matt Hougan says crypto tokens outside Bitcoin are underpriced because the market hasn't caught up with a shift toward revenue-based valuation. He pointed to Hyperliquid, Solana and Aptos as examples of protocols now tying token value to the fees they generate, arguing prices could double or more once investors adjust.
Bitwise CIO Matt Hougan argues that crypto assets outside Bitcoin trade too low because investors haven't priced in a shift toward revenue-based valuation. In a note published Wednesday, Hougan said, "That era is over."
Outside of Bitcoin, he added, token value will increasingly be defined by the same metric that defines stocks and bonds: revenue. Hougan expects the stronger link between revenue and token value to push valuations higher as investors recognize the change.
DeFi protocols redirect fees to holders
Hyperliquid generated more than $800 million in revenue last year and used about 99% of it to buy and burn its HYPE token. Since the token launched in November 2024, the protocol has bought and burned $1.3 billion worth of HYPE.
Uniswap generates roughly $100 million in annual revenue. Aave targets about $30 million in annual AAVE burns, roughly 20% of its revenue. Pump.fun has generated $328 million in annual revenue and burned $370 million worth of PUMP through April 2026. Lighter has repurchased roughly 6% of LIT's circulating supply on $67 million in annual revenue.
Layer 1 networks join the trend
The "revenue fever" is spreading to Layer 1 blockchains, Hougan said. Solana's SGP-0003 proposal would raise its fee burn by up to 14 times.
Aptos raised gas fees tenfold earlier this year. Transaction activity nearly tripled, and annual token burns rose from about 90,000 to roughly 1.9 million.
A friendlier regulator set the stage
Hougan tied the shift to changes in the regulatory environment. He pointed to the SEC's July 2023 loss in its case against Ripple over XRP and the case's end in August 2025.
Paul Atkins then replaced Gary Gensler as SEC chair, adopting a more favorable approach to crypto regulation. Hougan expects DeFi applications and Layer 1 networks to capture more revenue over the next 12 to 24 months as the shift continues.
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