Beyond Bitcoin, investors are increasingly focusing on protocol revenue, with some projects already returning income to token holders through buybacks and burns. This was stated by Bitwise CIO Matt Hougan in a memo.
Hougan recalled a longstanding criticism of the sector: networks could attract users and generate revenue, but these funds had little impact on tokens and their holders. He linked this situation to Bitcoin’s design, which did not provide for passive income, and the pressure from the SEC on the industry from 2017 to 2025.
The turning point, according to Hougan, was July 2023, when the regulator lost its case against Ripple regarding XRP sales to retail investors.
Hougan noted that subsequent decisions mostly favored the company, and by August 2025, both parties dropped their appeals. By this time, Paul Atkins had taken over as the head of the Commission, and the regulator’s approach to crypto assets became more favorable.
Hougan cited Hyperliquid as a prime example of the new model. Last year, the project generated over $800 million in revenue and allocated about 99% of its income to buying back and burning HYPE. Since the token’s launch in November 2024, Bitwise reports that the platform has bought back and burned $1.3 billion worth of HYPE.
Hougan sees similar shifts in other protocols. In December 2025, Uniswap approved the UNIfication proposal with 99.9% support, burned 100 million UNI, and enabled protocol fees. Aave has been conducting weekly AAVE buybacks for a year and a half, and in June 2026, it launched the Aavenomics 3.0 program.
Among more aggressive examples, Hougan highlighted Pump.fun, which had destroyed $370 million worth of PUMP tokens by April. He also mentioned positive developments in Lighter, Solana, and Aptos.
However, the Bitwise CIO clarified that crypto assets do not grant holders legal rights to income, and tokenomics parameters can change by community decision. Despite this, Hougan expects a stronger link between protocol revenue and token value.
“For years, yield was the best argument against cryptocurrencies. Soon it will be the best argument in their favor,” Hougan emphasized.
Earlier, in August, Bitcoin miners’ fee revenue dropped to a 10-year low.
