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.
Grayscale warned that competition is intensifying among platforms such as Ethereum, Solana, BNB Chain, Avalanche and emerging networks, meaning not all projects will succeed despite growing regulatory clarity and long-term adoption trends.
At the time of reporting, Bitcoin price was $76,549.68.