Bitwise’s Chief Investment Officer, Matt Hougan, has expressed his expectation that crypto valuations could double as protocols link revenue to tokens. This is based on the anticipated spread of revenue-capture mechanisms across DeFi applications and layer-1 networks over the next 12 to 24 months.
This development could significantly impact the cryptocurrency market, as it would allow protocols to generate revenue and potentially distribute it back to token holders. The spread of such mechanisms is seen as a key factor in the potential growth of crypto valuations.
This prediction is based on reporting from CoinTelegraph. In the context of the cryptocurrency market, the growth of DeFi and layer-1 networks has been a significant trend, with various protocols exploring ways to generate revenue and reward token holders.