Grayscale: Which crypto protocols have high revenue and attractive valuations in a bear market?

Author: Zach Pandl, Head of Research at Grayscale; Translated by: @金色财经xz

After a long bear market, many blockchain applications that can generate revenue are now, from a fundamental perspective, valued quite attractively. In fact, among the top 15 onchain applications ranked by protocol revenue—most of them included Hyperliquid—their trailing 12-month valuation multiples have already entered a compelling range, with many at just single digits (see chart below). Since most protocols do not have large operating expenses, they also appear inexpensive when valued based on profit or cash flow.

We believe that if the CLARITY Act is passed—most likely as soon as next month—it could help unlock this value. Why? Because once the legislation is enacted and provides a rulebook from traditional finance for crypto assets, it could become a boon for many applications of this kind.

Specifically, the CLARITY Act will promote the development of tokenized assets and onchain finance. And among the top 15 revenue-ranked protocols, almost all involve financial application scenarios or closely related infrastructure, such as oracles and staking facilities. We expect that with the bill passed, onchain trading activity will see the anticipated growth, and these protocols will benefit significantly from it.

Key Takeaway: Against the backdrop of the CLARITY Act likely to be passed, many revenue-generating crypto assets are trading at low valuations. In our view, this creates an especially attractive entry point for investors focused on fundamentals.