Crypto assets are entering a new phase in which revenue and returns to token holders will increasingly determine their valuations, according to Bitwise Chief Investment Officer (CIO) Matt Hougan.

In a note to investors late Wednesday, Hougan argued that the long-standing criticism that crypto projects generate little or no revenue is becoming outdated. He noted that the shift could mean many crypto assets are currently undervalued.

In earlier years, while several projects attracted millions of users and generated billions of dollars in activity, relatively little revenue was directly distributed to token holders.

Regulatory shift opens door to revenue capture

Hougan noted that this dynamic was partly shaped by regulatory uncertainty….