Crypto’s valuation framework may be due for an update as more networks turn protocol revenue into token buybacks and burns, a shift that Matt Hougan, Chief Investment Officer at Bitwise, argues the market has not fully priced in. In a Wednesday memo, Hougan described a growing “revenue-driven” model for crypto assets outside Bitcoin, where real usage and activity can translate into native-token value—potentially supporting much higher valuation expectations than today’s metrics imply.

Hougan went further, suggesting that if decentralized finance (DeFi) and layer-1 networks continue adopting fee-to-token mechanisms over the next 12 to 24 months, investors could begin to see token economics resemble more familiar valuation logic….