Bitwise CIO Matt Hougan said crypto tokens are entering a revenue-driven era, pointing to projects like Hyperliquid, Uniswap, and Aave that are using actual revenue to buy back and burn their tokens. The shift, he argues, marks a departure from the speculation-heavy market of previous cycles.
Hougan's argument
Hougan, who oversees Bitwise's crypto investment strategies, said the industry is moving past the phase where token prices were driven mostly by narrative and hype. Instead, he said, the focus is turning to fundamentals — specifically, whether a project can generate real revenue and return value to token holders. The clearest sign of that, he said, is the growing number of projects using revenue to buy back tokens and burn them, reducing supply.
The buyback and burn playbook
Hyperliquid, Uniswap, and Aave are among the projects Hougan cited. Each is directing a portion of its revenue toward token buybacks and burns. For Uniswap, that means using fees from its decentralized exchange to repurchase UNI tokens. Aave, a lending protocol, is doing something similar with its AAVE token. Hyperliquid, a derivatives platform, has also adopted the practice. The mechanics vary, but the goal is the same: take tokens out of circulation, which can support price over time.
A break from the past
This is a notable change from earlier crypto cycles, when many tokens had no underlying cash flow and prices were driven by speculation. Now, some of the largest protocols are behaving more like traditional companies, returning profits to shareholders — except here, the "shareholders" are token holders. Hougan's point is that this could make tokens more attractive to a broader set of investors, including those who have been wary of crypto's volatility.
The next test will be whether other projects follow suit. For now, the move toward buybacks and burns is a signal that the industry is maturing.
