Bitwise CIO Matt Hougan identifies two investment themes for the next crypto rally: decentralized protocols with token buybacks and traditional brokers building blockchain infrastructure.
Alpha Score of 51 reflects moderate overall profile with weak momentum, poor value, strong quality, strong sentiment.
Matt Hougan, chief investment officer at Bitwise Asset Management, is steering investors toward two types of crypto investments he expects to lead the next market rally: decentralized protocols with strong revenue and token buyback models, and traditional financial firms that embed blockchain into their core operations.
The first pathway, which Hougan calls the "Hyperliquid approach," centers on decentralized applications that have pushed into derivatives trading for traditional assets such as commodities and equity indices, as well as pre-IPO shares. These platforms run around the clock with near-instant settlement. Hyperliquid itself has crossed $1 billion in cumulative revenue and projects roughly $800 million for the current year, Hougan said. Nearly all of its fee income, about 99%, goes toward open-market repurchases of its native token, creating a mechanism that rewards holders as activity grows. Hougan said this structure contrasts with earlier decentralized apps that focused on user acquisition over value accrual.
The second pathway, dubbed the "Robinhood model," highlights established financial firms integrating blockchain infrastructure at scale. Robinhood Markets' Layer 2 blockchain, launched July 1, has amassed over $300 million in deposits and handles millions of daily transactions, Hougan noted. The chain supports tokenized stocks and perpetual markets, giving retail investors 24/7 access and faster settlement. Robinhood Markets (HOOD) has an AlphaScala Alpha Score of 46, indicating a mixed near-term outlook. Hougan said entities committing at this scale gain operational insights that cautious peers stuck in proof-of-concept phases will miss.
Hougan's outlook shifts the focus from hype-driven cycles to ones grounded in revenue and utility. Investors may benefit from tracking projects and firms that embody these traits, he said.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.