Grayscale has announced a major overhaul in its methodology for selecting the top 20 cryptocurrencies for Q3 2025. Moving away from traditional market capitalization metrics, the firm now prioritizes real on-chain activity, leading to the exclusion of XRP, ADA, and BNB—while adding Avalanche (AVAX) and Morpho to its revised list.
Why On-Chain Metrics Matter
Grayscale’s updated ranking system evaluates cryptocurrencies based on:
- Adoption rates
- Transaction volume and fees
- Sustainability
- Ecosystem growth
This shift reflects a broader industry trend toward valuing organic usage over speculative trading.
Key Inclusions: Avalanche and Morpho
Avalanche (AVAX)
- Added due to explosive growth in its Web3 gaming ecosystem (e.g., MapleStory) and rising stablecoin adoption.
- Demonstrates strong long-term potential through developer activity and user engagement.
Morpho
- TVL surpasses $4 billion**, with nearly **$100 million in annual revenue.
- Emerging as a competitor to Aave and Maple Finance in on-chain lending.
👉 Discover how Avalanche’s ecosystem is evolving
Why XRP, ADA, and BNB Were Excluded
Despite their market dominance, these assets lacked compelling on-chain traction:
XRP:
- Network activity dropped 70%; price remains 45% below its all-time high.
- Limited growth despite Ripple’s partnerships.
ADA:
- Declined 35% YTD despite plans to integrate Bitcoin into its DeFi ecosystem.
BNB:
- Insufficient transactional activity relative to its market cap.
Implications for the Crypto Market
Grayscale’s pivot underscores a broader institutional shift:
- Performance-driven investments over hype.
- On-chain data as the new benchmark for credibility.
👉 Explore the future of on-chain metrics
FAQ Section
Q: Why did Grayscale change its ranking criteria?
A: To prioritize assets with verifiable usage and adoption, reducing reliance on speculative valuations.
Q: Will XRP or ADA return to the top 20?
A: Only if they demonstrate sustained on-chain growth, such as increased transactions or developer activity.
Q: Is Morpho a safe investment?
A: Its high TVL and revenue suggest stability, but always conduct independent research.
Q: How does Avalanche compare to Ethereum?
A: AVAX focuses on scalability for gaming and DeFi, while ETH remains the leader in smart contracts.
Q: What’s next for BNB?
A: Binance’s ecosystem must boost utility (e.g., DeFi, staking) to regain institutional interest.
This recalibration by Grayscale may inspire other firms to adopt similar frameworks, reshaping how cryptocurrencies are evaluated in 2025 and beyond.
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