Grayscale Sees Revenue-Generating Protocols as Undervalued Amid Regulatory Clarity

Grayscale has highlighted revenue-generating crypto protocols as potentially attractively valued after recent market shakeouts. The report focuses on DeFi and infrastructure names tied to real usage and fee generation, arguing that these protocols may be trading at attractive valuations relative to their earnings potential.

The research points to a different way of looking at altcoins: not just as speculative tokens, but as businesses or networks with recurring fees and user demand. This framing matters after a market shakeout, when investors often move away from pure narratives and toward assets that can show measurable activity.

A major part of the argument is regulatory. If US market structure legislation such as the CLARITY Act advances, the legal status of certain crypto protocols may become easier for institutions to evaluate. This could reduce one of the biggest barriers to institutional allocation.