The Rise of Token Value Capture: Insights from Bitwise's CIO
Bitwise's CIO predicts a surge in token value capture, fueled by Ethereum's upgrades and changing regulations.
Crypto tokens are increasingly becoming adept at capturing value due to new regulations and upgrades, potentially leading to price spikes in 2026, according to Bitwise’s Chief Investment Officer, Matt Hougan.
Hougan shared insights in a recent X post, observing that amidst the current market pullback, significant developments such as the rising trend of value capture in digital assets are being overlooked.
“Most of today’s tokens were created in a regulatory era where value capture was risky; as a result, they defaulted to vague governance-style design choices,” he stated.
“Under the new regulatory climate, that’s being unwound. I think we’ll start to feel this effect in 2026.”
Uniswap Surges After Investor-Friendly Proposal
The native token of Uniswap (UNI) gained momentum after the Uniswap Foundation introduced proposals aimed at making the token more appealing to investors. Ideas include implementing a protocol-level fee mechanism for burning tokens and establishing a Protocol Fee Discount Auctions system to enhance liquidity provider returns.
Hougan views this as a leading example of a token striving to capture value and speculates that, should the proposal pass, UNI could find its place among the top ten cryptocurrencies by market capitalization.
“The big knock on UNI has always been that it is a governance token. Uniswap is great, but activity on Uniswap didn’t benefit UNI tokenholders,” he explained.
“However, UNI is now considering activating a fee mechanism. If this vote passes, around 16% of trading fees will be utilized to burn UNI, which may elevate UNI toward a top ten token in the long term.”
Fusaka Upgrade Could Propel Ether’s Value
Additionally, Hougan cited Ethereum’s upcoming Fusaka upgrade as a significant factor that could dramatically increase token value capture.
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Source: Matt Hougan
The mainnet launch of the Fusako upgrade is anticipated in December, focusing on enhancing Ethereum’s execution layer and improving staking economics.
“I believe the market will soon begin to recognize the positive impacts of Fusaka, especially if it launches as scheduled on December 3. It may serve as an undervalued catalyst, one reason ETH could lead a rebound in the crypto market,” mentioned Hougan.
XRP Staking Rewards as a Positive Change
Furthermore, Hougan addressed the Ripple’s XRP token, noting that discussions around adding staking features could enhance its value capture.
“There’s a growing emphasis on value capture within the XRP community, which is exploring staking options that could transform tokenholder economics,” he remarked.
“The consistent thread: the level of value capture in digital assets will only increase from here. Token value capture should not be viewed as static; it’s evolving.”
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