Bitwise Chief Investment Officer Matt Hougan has identified two categories of crypto investments he considers best positioned for the next bull market: revenue-generating crypto applications and established traditional finance firms building on blockchain infrastructure.

Hougan framed both opportunities around what he describes as the convergence of onchain and traditional finance, stating that stablecoins, tokenization, and around-the-clock trading will lead the upcoming cycle. That convergence has already gained measurable traction: the total stablecoin supply has grown past $250 billion in 2024, and tokenized real-world assets onchain have expanded across U.S. Treasuries, credit, and commodities, with entries from firms including BlackRock's BUIDL fund and Franklin Templeton's BENJI token.

Revenue-Generating Crypto Applications

The first category covers crypto applications with real revenue and tokenomics that tie token value directly to platform usage. Hougan cited Hyperliquid (HYPE) as the leading example.

Hyperliquid operates a Layer 1 blockchain and hosts a perpetual futures trading platform. The platform is on track to generate close to $800 million in annual revenue this year, directing almost all of that revenue into buying back HYPE tokens.

This model has delivered notable results. Hougan emphasized that HYPE has climbed approximately 146% this year despite the broader crypto downturn, citing real platform growth as the primary driver. The buyback-and-burn structure echoes mechanisms more commonly associated with traditional equity markets, where revenue is returned to holders through buybacks or dividends — a shift that contrasts with earlier crypto cycles where many tokens lacked a clear link to protocol cash flows.

"I think the token could double in price and still be fairly valued," Hougan said. "Over time, I believe a new wave of crypto assets will copy HYPE's tokenomics and introduce exciting 'next-gen' token opportunities."

The executive also named Uniswap (UNI), Aave (AAVE), and Morpho (MORPHO) as existing protocols moving toward tying token value to usage. Uniswap governance has debated enabling a protocol fee that would route a portion of trading revenue to UNI stakers, while Aave and Morpho have explored mechanisms that align token holder rewards with protocol activity.

Established Firms Building on Blockchain Rails

The second category encompasses established companies running crypto operations at scale rather than small pilot programs. Hougan pointed to Robinhood as the clearest example.

Robinhood launched its own blockchain on July 1. The chain has experienced notable growth and ranks among the top five by DEX volume.

"Robinhood is learning 10,000x more from a live chain in 120 countries than any pilot could teach it," Hougan noted.

However, he conceded that much of the early activity on Robinhood's chain involves meme coins rather than tokenized stocks. The executive expects both stock volume and user participation to scale over time. Tokenized equities remain a nascent market, though the infrastructure being deployed by brokerage and payments firms positions them to offer crypto-native settlement and extended-hours trading if regulatory frameworks continue to develop.

Hougan also flagged Coinbase, Figure, and BlackRock as firms with meaningful crypto exposure. He added Visa, Stripe, and JPMorgan to his watchlist. Each has taken concrete steps into the space: Coinbase has expanded its Layer 2 network Base, BlackRock launched a tokenized treasury fund and spot Bitcoin and Ethereum ETFs, Stripe announced stablecoin payment integrations, and Visa has piloted stablecoin settlement rails.

The Bitwise CIO affirmed that he remains bullish on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) as the broad foundation for any market rally.