Grayscale Investments has published research identifying the top revenue-generating crypto protocols that are currently trading at low multiples, a situation the firm believes could be transformed by the proposed CLARITY Act. The analysis highlights tokens such as $HYPE (Hyperliquid), $PUMP (Pump.fun), and $CAKE (PancakeSwap) as especially undervalued given their robust on-chain earnings.
According to Grayscale’s Head of Research, Zach Pandl, many blockchain protocols with significant revenues are priced far below their financial performance when measured by profit and cash flow. The low operating costs of these networks contribute to the disconnect between usage and market value. “Protocols appear particularly undervalued when assessed on metrics like profit and cash flow,” Pandl stated.
The CLARITY Act, a U.S. legislative proposal aimed at delivering a clearer regulatory framework for digital assets, stands at the center of this thesis. Grayscale’s report argues that reduced legal uncertainty would boost on-chain transactions and network activity, directly benefiting protocols that earn fees from those activities. In the past 12 months, Hyperliquid led the field with $871 million in protocol revenue, followed by Pump.fun at $459 million. Most of the top earners operate in financial services and related infrastructure, such as oracles and staking.
The announcement arrives as the broader crypto market trades cautiously, with 24-hour volumes remaining subdued. Traders appear to be waiting for concrete regulatory developments before committing capital, underscoring the potential catalyst that the CLARITY Act represents. If passed, the legislation could attract institutional investment and spark a revaluation of fundamentally strong protocols that have been overlooked.
Grayscale’s data-driven approach signals a shift toward traditional financial metrics in crypto analysis, emphasizing revenue and cash flow as key valuation tools. Investors are now watching both legislative progress and the ongoing revenue performance of highlighted assets for signs of a trend break.
