Investors are increasingly focusing on the revenue generated by protocols beyond Bitcoin, with some projects returning profits to token holders through buybacks and burning mechanisms. This was stated by Matt Hougan, the CIO of Bitwise.
Hougan reminded that a historical criticism of the sector was that while networks could attract users and generate revenue, these funds had minimal impact on the tokens and their holders. He linked this situation to Bitcoin's structure, which did not anticipate passive income generation, and to the SEC's pressure on the industry from 2017 to 2025.
He identified July 2023 as a pivotal moment when the regulator lost its case against Ripple regarding the sale of XRP to retail investors.
According to Hougan, subsequent rulings largely favored Ripple, and by August 2025, both parties had dropped their appeals. At that point, Paul Atkins had taken over the Commission, leading to a more favorable regulatory approach towards crypto assets.
As a key example of this new model, Hougan pointed to Hyperliquid. Over the past year, the project generated more than $800 million in revenue, directing about 99% of its income towards the buyback and burning of HYPE tokens. Since the token's launch in November 2024, Bitwise reports that the platform has bought back and burned HYPE tokens worth $1.3 billion.
Hougan sees similar shifts occurring with other protocols. In December 2025, Uniswap approved the UNIfication proposal with 99.9% support, burned 100 million UNI tokens, and included protocol fees. Aave has been conducting weekly buybacks of AAVE 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 by April had destroyed PUMP tokens worth $370 million. He also mentioned the positive developments at Lighter, Solana, and Aptos.
However, the CIO of Bitwise clarified that crypto assets do not grant holders a legal right to receive income, and the parameters of tokenomics can change based on community decisions. Despite this, Hougan anticipates a strengthening connection between protocol revenue and token value.
"For many years, profitability was the best argument against cryptocurrencies. Soon it will become the strongest argument in their favor," Hougan emphasized.
It is worth noting that in August, the income of Bitcoin miners from fees dropped to a ten-year low.