Ethereum's new upgrade is due on Dec. 3 | Source: Created with Gemini
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Key Takeaways
Ethereum’s December Fusaka upgrade could significantly increase network revenue, says Bitwise CIO.
Hougan highlighted UNI and XRP as examples of a shift to more economically empowered token designs.
Analysts warn of further downturn in the crypto market.
Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, says an overlooked technical upgrade coming to Ethereum in December could help position the token to lead a broader crypto rebound in 2026.
In a series of X posts this weekend, Hougan argued that investors are missing the significance of fast-advancing “value capture” mechanisms across major digital assets, including ETH, UNI and XRP, amid the current market pullback.
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Hougan highlighted Ethereum’s upcoming Fusaka upgrade, estimated for Dec. 3, calling it a shift that strengthens the network’s long-term revenue potential.
“ETH is also taking steps to increase value capture. Specifically, the coming Fusaka upgrade significantly increases token value capture,” the CIO wrote.
“Surprisingly, almost no one is talking about this.”
He said that Ethereum’s Fusaka upgrade will “introduce a minimum fee for recording data from Layer 2s” and could “5-10X revenue capture by the blockchain.”
Matt Hougan is bullish on Ethereum | Source: X
The Bitwise CIO said Ethereum investors are likely to notice the implications of Fusaka in the coming months.
“I suspect the market will start to orient around the positive impacts of Fusaka soon, particularly if it’s delivered Dec. 3 as expected,” he said.
“It’s an under-appreciated catalyst and one reason ETH could lead the crypto rebound.”
Stronger Value Capture
Hougan argued that Ethereum is not the only token benefiting from improved economic design.
“UNI is the most obvious,” he said, referring to Uniswap’s ongoing community discussions about activating its long-debated fee switch.
2/ UNI is the most obvious. 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 token holders.
If approved, he wrote, “~16% of trading fees will be used to burn UNI.”
He believes that could “push UNI toward being a top 10 token by market cap over time.”
Hougan also noted rising experimentation around XRP token economics, stating:
“You see a growing focus on value capture in XRP as well. The community is starting to consider ideas like staking, which would change the economics for token holders.”
Across these examples, Hougan said the level of “value capture in digital assets is up only from here.”
Shifting Regulatory Climate
Hougan suggested the shift is being partly driven by evolving regulation, which is allowing projects to embrace stronger economic models.
“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 wrote.
Regulation is shifting, says Bitwise CIO | Source: X
“Under the new regulatory climate, that’s being unwound,” he added.
Hougan said that investors will likely start to see the results next year.
“I think we’ll start to feel this effect in 2026,” he wrote.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
