- Bitwise CIO Matt Hougan explains why many people believe crypto doesn’t create revenue.
- He used Hyperliquid as proof that crypto is becoming a revenue-driven market.
Bitwise CIO Matt Hougan has recently released a myth-busting memo arguing against claims that cryptocurrencies don’t generate revenue. He also highlighted that the same narrative is the reason why they don’t reflect their utility.
Hougan cited Hyperliquid (HYPE) as a key example that with the right model, crypto can be a revenue generator.
False Equivalence of Every Crypto to Bitcoin
According to Hougan, people generally associate crypto with Bitcoin (BTC), which he admitted does not gain revenue because of its status as a monetary asset akin to gold. Given that, the largest crypto asset in the world by market cap has very limited “productive uses,” but many still invest in it. After all, no one has ever questioned gold’s revenue. Unfortunately, such a notion has carried over to every other crypto asset.
Making things worse were regulators’ previous actions. The Securities and Exchange Commission (SEC) under the administrations of Jay Clayton and Gary Gensler from 2017 to 2025 has notably waged war against the industry, further curbing the revenue-generating potential of crypto and other digital assets.
These events led governance tokens to limit their incentives to voting rights for holders without any share of their revenues. Among the examples he cited were decentralized finance (DeFi) tokens Uniswap (UNI) and Aave (AAVE).
Fortunately, Ripple’s landmark win against the SEC in 2023 set the tone for regulators’ clearer treatment of crypto. It established a legal precedent that not all tokens, XRP in this case, are securities when sold to retail investors. Another relief came when Paul Atkins took over Gensler’s position, leading to a significant reversal in the agency’s crypto policies.
Hyperliquid Breaks the Narrative
Hougan emphasized that Hyperliquid has transformed the industry as it expanded from simply offering perpetual futures contracts to a top player in spot trading, real-world asset (RWA) tokenization, and prediction markets. He stated it’s been the “best-performing major crypto asset” since its token launch in November 2024, surging by roughly 800% even as Bitcoin lost a third of its value.
The CIO attributed Hyperliquid’s success to many things, but he primarily identified its fee revenue structure as a major contributor to its growth. The chain allocates 99% of its trading fees to buy and burn its native token, HYPE. This programmatic buyback mechanism is similar to traditional corporate stock repurchases, which create cash-flow-driven demand tied to network usage and trigger a positive feedback loop for token holders.
Since launch, Hyperliquid has burned $1.3 billion worth of HYPE, laying a strong foundation for the token’s value. This is a clear illustration that a blockchain’s rising activity can eventually carry over to its token.
Meanwhile, Hougan sees Uniswap, Aave, Solana’s (SOL) Pump.fun, and the Lighter (LIT) perps exchange catching up with the trend.
“If I’m right that the link between revenue and token value is strong and getting stronger, we could see valuations double or more as the market catches up with reality,” Hougan said in his concluding statement. “For years, revenue was the best argument against crypto. It’s about to become the best argument for it.”
