Grayscale Investments said smart contract platforms are becoming core infrastructure for Web3, moving beyond simple cryptocurrency transactions into decentralised applications such as lending, payments and asset tokenisation.
In a recent update, Grayscale Investments said networks pioneered by Ethereum in 2015 now underpin stablecoins, decentralised finance and broader on-chain activity rather than focusing solely on payments.
Grayscale said these platforms account for about 70% of the crypto market excluding Bitcoin, representing roughly $650 billion in value and highlighting their potential to reshape financial systems through open-source infrastructure.
The firm said investor appeal stems from network activity generating transaction fees that accrue to token holders, alongside staking rewards such as roughly 3% on Ethereum and about 7% on Solana.
Grayscale added that a hypothetical 5% allocation to smart contract platforms could have lifted five-year annualised returns in a traditional 60/40 portfolio from 7.3% to 10.1%, despite volatility ranging between 65% and 90%.
The update noted rapid adoption, with daily active users rising from about 50,000 in 2016 to nearly 15 million by 2025, more than 50 billion transactions processed and over $100 billion locked in on-chain applications.