Bitwise CIO Matt Hougan highlights an overlooked trend: Major tokens advancing value capture mechanisms
Alyssa Davidson
Posted: Nov 24, 2025 3:17 AM Updated: Nov 24, 2025 3:20 AM
Correction and fact check date: November 24, 2025, 3:17 AM
briefly
Bitwise CIO Matt Hougan highlights that UNI, ETH, and XRP are advancing value capture mechanisms through initiatives such as fee burning, protocol upgrades, and staking.
Matt Hougan, Chief Investment Officer at cryptocurrency index fund manager Bitwise, highlighted a market trend that he believes is being largely overlooked. This means that major tokens are increasingly improving their value capture mechanisms.
In a recent post on social media platform X, Matt Hougan emphasized that one source of alpha is identifying developments that may be lost amid broader market activity. He noted that important changes and updates are often obscured or ignored during the current market decline.
Matt Hougan pointed out several examples of tokens that enhance value capture, including UNI, ETH, and XRP. Regarding UNI, he said the main criticism of the token historically has been that, despite Uniswap’s overall popularity, it offers few direct benefits to holders and primarily functions as a governance token.
However, UNI is considering enabling “fee conversion,” which, if approved, would allocate approximately 16% of transaction fees to burning UNI tokens. The expert suggested that this adjustment could eventually put UNI in the top 10 tokens by market capitalization, reflecting a stronger alignment between protocol activity and token holder value.
He also discussed Ethereum, noting that upcoming protocol updates, especially the Fusaka upgrade expected in December, are expected to increase value capture. Matt Hougan explained that the upgrade introduces features such as minimum fees for Layer 2 data recording, which could significantly increase monetization on the network. He cited a report from Fidelity that highlighted these developments and suggested that once Fusaka is implemented, the market could begin to recognize the positive implications of Fusaka, potentially positioning ETH as a leader in the cryptocurrency market recovery.
The Bitwise CIO also observed that XRP is increasingly focused on value capture, with the community exploring mechanisms such as staking that will transform the economics of token holders. In all three cases, he identified a common theme: that the potential for value capture in key digital assets is increasing and that this is not a static indicator. He emphasized that while many market participants continue to view token value acquisition as fixed, in reality these mechanisms are evolving and improving over time.
Altcoins show early signs of recovery amid market sell-off with new XRP and DOGE ETFs launching in the US.
Last week, the broader cryptocurrency market experienced selling pressure. The overall market cap fell about 9.4% in one week, with the decline mainly driven by BTC and ETH, with many altcoins also experiencing smaller declines. Altcoins outside the top two fell by about 7.1% on average.
There are early signs of some recovery in altcoins this week. Market commentary sees moderate gains for some major alternatives while markets remain cautious.
Amid this downward trend, Bitwise’s spot XRP exchange-traded fund (ETF) began trading under the name XRP on the New York Stock Exchange last week.
In the US, there has been a surge in new ETFs designed to track various altcoins, with recent launches providing exposure to assets such as Solana, XRP, Litecoin, and Hedera. In addition to the ETFs already launched, the issuer is exploring funds that track the prices of cryptocurrencies, including Cardano, Avalanche, Polkadot, and others.
Meanwhile, the NYSE recently approved today’s listing of Grayscale’s XRP and DOGE-based ETFs.
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About the author
As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
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As MPost’s resident journalist, Alisa specializes in the broad areas of cryptocurrencies, zero-knowledge proofs, investing, and Web3. With a keen eye for new trends and technologies, she provides comprehensive coverage to inform and engage readers about the ever-evolving digital financial landscape.
more articles