Bitwise CIO forecasts revenue-capture mechanisms in DeFi to boost token values over the next two years.
Crypto valuations could at least double as decentralized finance protocols adopt revenue-driven token buybacks and burns. Bitwise Chief Investment Officer Matt Hougan said the shift toward linking protocol revenue to native tokens remains underpriced by investors, leaving assets undervalued.
Several protocols, including Hyperliquid and Uniswap, already use fees to repurchase or remove tokens from circulation. Hyperliquid reported $800 million in revenue last year, directing 99% toward HYPE buybacks, while Q2 revenue reached $169 million with $141 million allocated to buybacks.
Hougan expects broader adoption of these mechanisms across DeFi and layer-1 networks within 12 to 24 months. The trend could provide investors with conventional valuation metrics, though token holders lack legal cash-flow claims.