The world’s largest digital asset-focused investment platform says institutional capital will initially target four blockchain networks as regulatory clarity improves.
In a new reportGrayscale says expected regulatory changes, including the Clarity Act that seeks to establish rules for classifying and regulating digital assets and guidance from the U.S. Securities and Exchange Commission (SEC), will likely drive use cases such as tokenized assets and decentralized finance (DeFi).
The company says the development will likely benefit major tokenized asset and DeFi chains, namely leading smart contract platform Ethereum (ETH), high-performance network Solana (SOL), Web3-focused decentralized blockchain BNB, and privacy-enabled Canton Network (CC).
“This rising tide could eventually lift all boats in the digital assets sector. But for now, a small number of blockchains dominate this activity, including Ethereum, Solana, BNB Chain, and Canton Network. In our view, institutional capital will target these networks first.”
Grayscale says several other blockchains should also benefit from regulatory clarity, including hybrid networks like Avalanche (AVAX), layer 2 Ethereum blockchains like Base and Arbitrum (ARB), specialty blockchains like Hyperliquid (HYPE), and stablecoin-focused networks like Tron (TRX).
The company says Bitcoin (BTC) will likely benefit as well, even though the largest blockchain network by market capitalization does not natively support smart contracts and has a more limited layer 2 network ecosystem.
“It will also likely benefit from regulatory clarity, in our view, as the safest asset and leading safeguard in the industry.”
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