Despite the recent pullback in the cryptocurrency market, investors are failing to recognize one of the most critical upcoming shifts, according to Bitwise CIO Matt Hougan: the increasingly robust value capture of major tokens.
Hougan said that developments in the UNI, ETH, and XRP ecosystems are moving token models from mere management tools towards true revenue sharing.
Hougan highlighted the “fee switch” proposal being discussed within the Uniswap community. The CIO stated that, if passed, approximately 16% of transaction fees would be used to burn UNI, and that this could be a catalyst that could propel UNI into the top 10 tokens by market capitalization in the long term.
On the Ethereum front, the Fusaka upgrade, expected to arrive in early December, is a key focus. It’s reported that the update could increase Ethereum’s revenue structure by five to tenfold by introducing a minimum data fee for Layer-2 networks. Hougan stated that this impact hasn’t yet been priced into the market, and that if the upgrade occurs on December 3rd, ETH could lead the recovery.
The XRP community is also discussing strengthening value capture mechanisms by working on staking models. According to Hougan, this transformation will accelerate as regulations become clearer, and by 2026, a “value-capture token economy” will become evident across the industry.
“Big news is often overlooked amidst market chaos,” the CIO said. “However, this shift in tokens’ ability to capture value is a much longer-term theme.”
*This is not investment advice.