Crypto Valuations Could Be Ready to Double, According to Bitwise's Matt Hougan -- But Only If This 1 Thing Happens
Key PointsBitwise's Matt Hougan thinks that crypto valuations could adjust upwards if chain fees are reformed.
Bitwise Asset Management's Chief Investment Officer, Matt Hougan, believes that crypto valuations could potentially double under specific circumstances. In an August 2026 note, Hougan suggested that if blockchains were to utilize the revenue they generate to execute buybacks for their coin holders, it could lead to significant appreciation in the sector's valuations.
To illustrate his point, Hougan highlighted Hyperliquid (CRYPTO: HYPE) as a successful example, which had reduced its maximum supply by 4.8% by burning $3.9 billion worth of its token, resulting in an 84% increase in its price over the past year. Hougan's theory hinges on the idea that a broader adoption of this strategy by major blockchains, such as Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL), could reshape the entire sector.
The current state of play indicates that while there is potential for such a shift, it remains contingent on the willingness of these major players to implement this buyback strategy.
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