Bitwise’s investment manager Matt Hougan emphasizes that the significant downturn in the cryptocurrency market has overshadowed crucial developments. He suggests that Ethereum 
$2,335 may regain prominence with its upcoming Fusaka update. This update, expected to be completed on December 3rd, could significantly enhance the altcoin giant’s value capture capacity and potentially alter the market’s direction. According to the experienced manager, this overlooked factor could play a primary role in the market’s recovery.
Ethereum’s Era of Value Capture Begins
Hougan highlights that new economic models seen in projects like Uniswap (UNI) and Ripple (XRP) 
$1 have started providing direct benefits to coin holders. He mentions that the fee switch mechanism brought up in Uniswap could use approximately 16% of transaction fees for UNI coin burning, thus strengthening the coin economy. Similarly, he suggests that Ethereum’s in-blockchain revenues might increase 5 to 10 times with the Fusaka update.
For those unfamiliar, the Fusaka update aims to expand Ethereum’s core revenue model by applying minimum fees to data records from Layer-2 networks. Drawing on a technical report published by DigitalAssets, Hougan asserts that this change will make in-blockchain revenues sustainable and create a fundamental transformation in Ethereum’s economic infrastructure.
Despite Ethereum’s current price pressures, Hougan believes it is in a strong structural position. If the update is completed on time, investors may experience a swift change in perception. He perceives Fusaka’s impact as a powerful catalyst capable of revitalizing the market’s overall morale.
New Regulatory Era Reshapes Coin Economy
Hougan recalls that coin designs have been limited in the past due to regulatory uncertainty, leading many projects to adopt governance coin models. However, with the current regulatory environment becoming clearer, projects are now able to take bolder steps toward creating real economic value.
In the XRP community, discussions around mechanisms like staking are viewed by the Bitwise executive as indicators of this transformation. Hougan states, “The value capture capacity of cryptocurrencies is now unambiguously heading upwards.” He anticipates that the market will feel the effects of this structural change more clearly from 2026 onward.
