Grayscale lists 15 revenue protocols as CLARITY Act nears

Grayscale Investments has identified what it sees as undervalued, revenue-generating cryptocurrency protocols, suggesting their low market valuations could rise significantly if landmark U.S. digital asset legislation becomes law. The firm's research, detailed in a June 24 report, analyzed the 15 largest on-chain applications by protocol revenue, finding many trade at low multiples relative to their earnings.

According to the analysis, many of these protocols screen as inexpensive when valued on traditional financial metrics like earnings or cash flow, a fact the firm links to minimal operating costs and the current lack of regulatory clarity. The top performer by revenue is the decentralized trading protocol Hyperliquid, with $871 million in trailing twelve-month revenue. It was followed by launchpad platform Pump.fun at $459 million and decentralized exchange PancakeSwap at $322 million. The research indicated most of these leading protocols trade at single-digit revenue multiples, with several, including PancakeSwap, Meteora, and Collector Crypt, trading around 1x revenue.

Grayscale's head of research, Zach Pandl, stated the potential passage of the CLARITY Act could be the...