Introduction
Grayscale’s latest Q3 2025 "Top 20" altcoin list highlights strategic shifts in institutional crypto investments, emphasizing Web3 infrastructure and real-world adoption. Key changes include the addition of Avalanche (AVAX) and Morpho, while Lido DAO (LDO) and Optimism (OP) were removed. Notably, XRP and Cardano (ADA) remain excluded, sparking discussions about institutional criteria.
Key Changes in Grayscale’s Altcoin Portfolio
New Additions
Avalanche (AVAX)
- Why Included: Surging network activity driven by gaming integrations (e.g., MapleStory) and stablecoin adoption.
- Metric Highlight: AVAX’s utility extends beyond speculation, with organic ecosystem growth.
Morpho
- Why Included: Over $4 billion in Total Value Locked (TVL) and innovative DeFi lending solutions like Morpho V2.
- Metric Highlight: Bridges traditional finance with on-chain lending, aligning with DeFi’s evolution.
Notable Exclusions
Lido DAO (LDO)
- Reason: Potential U.S. regulatory risks could disrupt its liquid staking dominance.
- Context: Centralized competitors may emerge if staking regulations change.
Optimism (OP)
- Reason: Lack of token revenue growth despite widespread Layer 2 adoption.
- Context: Ethereum’s rollup interoperability plans may overshadow OP’s "superchain" vision.
XRP & Cardano (ADA)
- Ongoing Exclusion: Absent despite active development, suggesting institutional preference for newer Web3 infrastructure.
Market Impact
- XRP fell 2.9% to $2.08, while **ADA** dropped **0.83%** to $0.5511 post-announcement (CoinMarketCap).
- Investor sentiment reflects uncertainty around Grayscale’s exclusion criteria for legacy assets.
Grayscale’s Strategic Pivot
👉 Grayscale’s Space and Time Trust signals a focus on next-gen blockchains like Space and Time, which supports AI and dApp data processing. This underscores a shift toward scalable, computation-heavy platforms.
FAQs
Why was Avalanche added to Grayscale’s list?
AVAX’s inclusion reflects its growing utility in gaming and stablecoins, showcasing real-world adoption beyond market hype.
Why are XRP and ADA consistently excluded?
Grayscale prioritizes projects with clear Web3 infrastructure use cases, potentially sidelining tokens with less institutional alignment.
What risks does Lido face?
U.S. regulatory changes could introduce centralized staking competitors, threatening Lido’s fee model.
How does Morpho stand out in DeFi?
Morpho’s V2 upgrade aims to merge traditional finance with on-chain lending, positioning it as a DeFi innovator.
Conclusion
Grayscale’s Q3 2025 list reflects a calculated move toward adoption-driven altcoins, sidelining legacy assets like XRP and ADA. With additions like AVAX and Morpho, the firm emphasizes ecosystem momentum and regulatory resilience. For investors, this signals a broader industry shift toward scalable, utility-focused crypto solutions.
👉 Explore Grayscale’s full research insights for deeper analysis.
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