Crypto buybacks could double valuations, says Bitwise

Crypto protocols like Hyperliquid, Uniswap, and Aave are using revenue for token buybacks and burns, a trend that could double valuations as more DeFi and layer-1 networks follow suit.

Bitwise's Matt Hougan suggests that crypto valuations could at least double as more protocols connect revenue to token buybacks and burns. He notes a market shift toward a revenue-driven model, where network activity increasingly boosts native-token value. Protocols like Hyperliquid, Uniswap, Aave, Pump.fun, and Lighter are highlighted for using fees to repurchase or remove tokens from circulation. For example, Hyperliquid generated over $800 million in revenue last year, spending about 99% on buying and burning its HYPE token. Uniswap and Aave have also adopted mechanisms to return revenue to token holders, including buybacks and treasury burns. Hougan points out that these mechanisms were largely absent before 2025, and investors have yet to fully price in this shift, leaving some crypto assets undervalued. He expects DeFi applications and layer-1 networks to increasingly adopt such revenue-capture models over the next 12 to 24 months, offering investors more conventional valuation metrics.