As the U.S. cryptocurrency industry prepares for the potential passage of the CLARITY Act, digital asset manager Grayscale has identified a number of blockchain protocols it believes are currently undervalued.
The firm’s assessment comes at a time when regulatory uncertainty has weighed heavily on many crypto assets, creating what it considers attractive buying opportunities for long-term investors. If the CLARITY Act succeeds in establishing a clearer legal framework for digital assets, these cheap protocols could benefit from renewed investor confidence and increased institutional participation.
The CLARITY Act is designed to provide greater certainty regarding the classification and regulation of cryptocurrencies in the United States. For years, crypto companies have struggled with inconsistent regulatory oversight, particularly regarding whether certain tokens should be treated as securities or commodities.
By introducing clearer rules, lawmakers hope to encourage innovation while strengthening investor protection. Market participants believe such legislation could remove one of the largest barriers preventing broader institutional adoption of digital assets.
Register for Tekedia Mini-MBA edition 20 (June 8 – Sept 5, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Against this backdrop, Grayscale argues that several blockchain networks are trading below their long-term intrinsic value. According to the firm’s research, market prices have failed to fully reflect the technological progress, growing developer activity, and expanding ecosystems of some leading crypto projects.
These assets have experienced significant price corrections despite continued improvements in network usage and infrastructure. Among the protocols attracting attention are blockchain platforms that support decentralized finance (DeFi), tokenized real-world assets, artificial intelligence applications, and blockchain-based infrastructure.
Grayscale believes these sectors represent some of the strongest long-term growth opportunities within the digital asset industry. As regulatory clarity improves, investors may become more willing to allocate capital toward projects with strong fundamentals rather than focusing solely on speculative trading.
The firm’s investment approach emphasizes identifying projects with sustainable ecosystems, active developer communities, and practical use cases. Rather than chasing short-term market momentum, Grayscale evaluates factors such as network security, transaction activity, user adoption, governance models, and long-term scalability.
Protocols that continue to build during periods of market weakness often emerge stronger once investor sentiment improves. Institutional investors are paying close attention to developments surrounding the CLARITY Act because regulation has become one of the most significant factors influencing cryptocurrency valuations.
Pension funds, asset managers, banks, and publicly traded companies have generally remained cautious about increasing exposure to digital assets amid legal uncertainty. A comprehensive regulatory framework could reduce compliance risks and encourage broader participation from traditional financial institutions.
Grayscale also acknowledges that identifying cheap protocols does not eliminate investment risk. Cryptocurrency markets remain highly volatile, and even fundamentally strong projects can experience substantial price swings. Macroeconomic conditions, interest rate policies, global liquidity, and technological competition continue to influence digital asset performance.
Investors must therefore balance potential opportunities with prudent risk management.
The coming months could prove pivotal for the crypto industry. If lawmakers advance the CLARITY Act and establish clearer regulatory guidelines, the sector may enter a new phase of institutional growth and innovation. In such an environment, blockchain protocols that have quietly expanded their ecosystems during periods of uncertainty may be well positioned to outperform.
Grayscale’s outlook reflects a broader belief that regulation and innovation are not mutually exclusive. Instead, transparent rules can strengthen market confidence, attract long-term capital, and reward projects with genuine utility.
While no investment is guaranteed to succeed, the firm’s identification of undervalued crypto protocols highlights how regulatory change can reshape market perceptions and create opportunities for investors willing to focus on long-term fundamentals rather than short-term volatility.