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 report, Grayscale says expected regulatory changes, including the Clarity Act that aims 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 firm says the development will likely benefit the leading chains for tokenized assets and DeFi, namely the leading smart contract platform Ethereum (ETH), the high-performance network Solana (SOL), the Web3-focused decentralized blockchain BNB Chain and the privacy-enabled Canton Network (CC).
“This rising tide could eventually lift all boats across the digital assets industry. But for the time being, a small number of blockchains dominate this activity, including Ethereum, Solana, BNB Chain, and Canton Network. Institutional capital will target these networks first, in our view.”
Grayscale says several other blockchains should also benefit from regulatory clarity, including hybrid networks like Avalanche (AVAX), Ethereum layer-2 blockchains such as Base and Arbitrum (ARB), specialized blockchains like Hyperliquid (HYPE) and stablecoin-focused networks like Tron (TRX).
The firm says Bitcoin (BTC) will also likely benefit despite that the largest blockchain network by market capitalization does not natively support smart contracts and has a more limited layer-2 network ecosystem.
“It will likely also benefit from regulatory clarity, in our view, as the industry’s most secure asset and leading collateral.”
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