Grayscale Says Crypto Fundamentals Are Driving Winners as Hyperliquid Outpaces Memecoins

Grayscale says the crypto market is increasingly rewarding projects with strong fundamentals instead of speculative hype, as institutional adoption grows and the prolonged bear market reshapes investor priorities. According to the asset manager, revenue-generating blockchain protocols are outperforming meme-based tokens with limited real-world utility.

The firm based its analysis on its Crypto Sectors framework, developed with FTSE Russell, which classifies more than 150 digital asset protocols according to their primary functions rather than market narratives. The framework is reviewed quarterly to reflect changes across the crypto ecosystem.

Grayscale highlighted the Financials Crypto Sector, which includes blockchain protocols supporting on-chain financial services, stablecoins, tokenized assets, and decentralized finance (DeFi). The company said these projects are benefiting from growing adoption as stablecoin settlement volumes continue to reach record levels, reinforcing demand for blockchain-based financial infrastructure.

Performance data underscores the trend. Since the beginning of 2024, the Financials Crypto Sector has gained around 15%, while the Consumer and Culture Crypto Sector has declined roughly 75%, creating a performance gap of approximately 90 percentage points. Grayscale noted that meme coins, led by Dogecoin (DOGE), account for about 85% of the market value within the underperforming consumer-focused sector.

Among financial-focused tokens, Grayscale identified Hyperliquid (HYPE) as a standout performer. The decentralized exchange directs trading fees into an assistance fund that repurchases HYPE tokens, creating a direct connection between platform activity and token value. HYPE climbed from an all-time low near $3.81 in late 2024 to a record high of $76.70 in June 2026 before trading around $63 on Monday, representing a gain of about 29% this year. The token is now ranked among the top 10 cryptocurrencies by market capitalization.

Grayscale said the market is increasingly rewarding blockchain projects with sustainable business models and measurable cash flows. Multicoin Capital Chief Investment Officer Tushar Jain echoed that view, arguing that leading protocols such as Hyperliquid and Solana should be evaluated like traditional businesses because their ability to generate revenue ultimately supports long-term token value. As institutional participation expands, Grayscale believes fundamentals rather than speculation are becoming the primary driver of crypto market performance.