Crypto valuations could double as protocols adopt token buybacks
In brief
- Bitwise CIO Matt Hougan expects crypto valuations to at least double as protocols adopt buyback and burn mechanisms
- Revenue-capture mechanisms spreading across DeFi applications and layer-1 networks over next 12-24 months
- Protocols like Uniswap, Aave, and Hyperliquid already use fees to repurchase or burn tokens
- Fidelity plans to add staking to its Ethereum ETF, potentially staking up to 100% of holdings
- HashKey Exchange launched as authorized distributor for Anchorpoint's Hong Kong dollar-backed HKDAP stablecoin
Valuations and Revenue Models
Hougan said crypto outside of Bitcoin is becoming a revenue-driven market in which network activity feeds into native-token value. Several protocols already demonstrate this model. Hyperliquid, Uniswap, Aave, Pump.fun and Lighter use fees to repurchase or remove tokens from circulation, creating direct linkage between protocol revenue and token economics.
This shift matters because it ties token value to real economic activity rather than pure speculation. As more protocols adopt buyback and burn mechanisms, investors get exposure to actual cash flows generated by on-chain activity.
Hong Kong Stablecoin Expansion
HashKey Exchange became an authorized distributor for Anchorpoint Financial's Hong Kong dollar-backed HKDAP stablecoin. The exchange has already completed its first minting and redemption transaction with eligible clients, including fiat on- and off-ramping services.
Anchorpoint is a joint venture between Standard Chartered Bank (Hong Kong), HKT and Animoca Brands and was among the first companies licensed by the Hong Kong Monetary Authority to issue stablecoins. The move signals growing institutional backing for tokenized fiat in Asia. Citi estimated Hong Kong dollar stablecoin circulation could eventually reach $16 billion, underscoring the potential scale of this market.
Fidelity Adds Staking to Ethereum ETF
Fidelity Investments plans to add staking to its spot Ether exchange-traded product, the Fidelity Ethereum Fund (FETH). The asset manager said FETH could stake up to 100% of its Ether under normal conditions, excluding ETH reserved for redemptions, expenses and liquidity needs.
The fund would retain 85% of staking rewards, with 15% going toward staking fees. This move lets Ethereum holders gain yield exposure through a traditional investment vehicle, removing friction for institutional and retail investors who want staking returns without managing validators directly.
