- Avalanche and Morpho joined Grayscale’s Top 20 list as XRP and Cardano remain excluded.
- Lido DAO and Optimism were removed due to regulatory and value capture challenges.
- Grayscale launched an AI Crypto Sector index tracking 24 tokens led by Bittensor (TAO).
Grayscale Investments has released its Top 20 crypto tokens for the third quarter of 2025, and the new lineup marks some major changes in what the asset management giant is watching.
The closely followed quarterly update introduces Avalanche (AVAX) and Morpho (MORPHO) as new entries, while continuing to exclude established names like XRP and Cardano (ADA).
Who’s In and Who’s Out?
Avalanche and Morpho have earned spots on the Q3 list based on recent performance and fundamental growth. Morpho’s inclusion follows the launch of Morpho V2, which aims to bring decentralized finance (DeFi) to traditional financial institutions.
Grayscale Research has indicated that Morpho’s on-chain lending activity may outpace that of other assets, reflecting heightened institutional interest in DeFi innovation.
In contrast, Lido DAO (LDO) and Optimism (OP) were removed from the Top 20 despite their strong roles in the Ethereum ecosystem. Grayscale cited regulatory uncertainty surrounding staking services, which could impact Lido’s fee revenue.
Related: BlackRock Already on Avalanche, Now Grayscale Wants Spot AVAX ETF Too
Optimism’s token, while supported by widespread technology adoption, reportedly struggled to achieve economic value capture. These removals signal a move toward assessing tokens on short-term momentum and adoption, rather than solely on sector leadership.
Exclusion of XRP and Cardano Raise Questions
For another consecutive quarter, Grayscale’s list has excluded both XRP and Cardano, a decision that stands out given the high trading activity and ongoing development for both projects. The omission is particularly noteworthy as discussions around potential spot ETF approvals for assets like XRP continue to advance, with analysts at Bloomberg assigning a high probability of a green light.
Related: BlackRock Seeks ETF Rule Change as Grayscale Makes New Filings
The persistent exclusion of these top-ten assets has industry watchers closely monitoring Grayscale’s evolving evaluation methods.
Alongside the Top 20 reshuffle, Grayscale’s Q3 report covers major sector trends from the second quarter of 2025. Bitcoin outperformed other digital assets in the Currencies category, while Smart Contract Platforms experienced higher transaction volumes but declining fee revenues as memecoin activity slowed. The update also highlights continued interest in decentralized artificial intelligence, DeFi lending, and emerging smart contract solutions.
Grayscale has also finalized the launch of its AI Crypto Sector index, now tracking 24 tokens with a combined value of $15 billion, led by Bittensor (TAO). The firm’s latest list and sector updates reflect shifting priorities across the digital asset industry as institutions and retail participants adapt to changing market conditions.
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