TL;DR

Grayscale added Avalanche and Morpho to its Top 20 cryptocurrencies for Q3 2025, removing Lido DAO and Optimism.
Avalanche stood out for its growth in transactions and partnerships, while Morpho doubled its TVL and launched a version tailored for traditional finance.
The firm also updated its Crypto Sectors framework, adding a dedicated sector for artificial intelligence tokens, which now hold a combined market cap of $15 billion.

Grayscale has updated its top cryptocurrency ranking for the third quarter of 2025, confirming two changes in its list of assets with the highest potential.

The firm included Avalanche (AVAX) and Morpho (MORPHO) in its Top 20, removing Lido DAO (LDO) and Optimism (OP). According to its analysis, these adjustments are driven by protocol-specific dynamics rather than general market trends.

The Evolution of Avalanche and Morpho

Avalanche made the list after posting steady growth in transaction volume and user activity. Part of this expansion was tied to new business partnerships and increased activity within its ecosystem. Although Grayscale noted that this growth might not be sustained, it valued the organic momentum and the network’s ability to attract liquidity in a competitive smart contract platform market.

Morpho, meanwhile, managed to double its total value locked and reached an annualized fee revenue of nearly $100 million. The protocol also introduced Morpho V2, an update aimed at integrating DeFi protocols with traditional financial services. For Grayscale, this strategy positions Morpho to capture a meaningful share of the on-chain lending market in the coming quarters.

Grayscale’s Asset Rankings

The assets leaving the Top 20 face more uncertain scenarios. In Lido DAO’s case, the potential approval of regulated financial products enabling staking in the United States could weaken its position against centralized providers. Optimism suffered a 54% drop in its ETH reserves and raised concerns about its long-term outlook, as Ethereum advances its own interoperability solutions that might render some Layer 2 models obsolete.

Grayscale also updated its Crypto Sectors classification framework, adding a specific sector for artificial intelligence projects. This segment now includes 24 tokens with a combined market capitalization of $15 billion, tripling its size since 2023.

Lastly, the firm added 20 altcoins to its “Assets Under Consideration” list for this quarter, without disclosing names. Grayscale warned that all selected assets remain highly volatile and that its reports do not constitute investment advice.

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Filed under: News - @ June 27, 2025 2:26 pm