Grayscale Adds Avalanche, Morpho to Top 20 Altcoins List

Grayscale, a leading digital currency asset manager, has released its Q3 2025 update, highlighting several altcoins that investors should keep an eye on. The update includes notable adjustments to its "Top 20" list, reflecting the dynamic nature of the cryptocurrency market. Avalanche (AVAX) and Morpho (MORPHO) have been added to the list, replacing Lido DAO (LDO) and Optimism (OP). This shift indicates a strategic move by Grayscale to diversify its portfolio and capitalize on emerging trends in the crypto space.

The inclusion of AVAX and MORPHO in the "Top 20" list is significant as it underscores the growing importance of these altcoins. Avalanche, known for its high throughput and low transaction fees, has been gaining traction among developers and users alike. Morpho, on the other hand, is a decentralized finance (DeFi) protocol that focuses on liquidity provision and yield farming, offering attractive returns to its users. By adding these altcoins to its list, Grayscale is positioning itself to benefit from the potential growth of these emerging technologies.

The removal of LDO and OP from the "Top 20" list is also noteworthy. Lido DAO is a liquid staking solution for Ethereum, allowing users to stake their ETH and receive stETH in return. Optimism is a layer-2 scaling solution for Ethereum, aiming to improve the network's scalability and reduce transaction costs. Their exclusion from the list suggests that Grayscale may be reassessing the long-term viability of these projects or exploring new opportunities in the market.

The updated roster spans a wide range of blockchain sectors — including AI, decentralized finance, infrastructure, and tokenized data — indicating a continued broadening of crypto’s core use cases. Among the notable names still holding their ground are mainstays like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), alongside newer players such as Hyperliquid (HYPE), Ethena (ENA), and Jito (JTO). The full list also includes protocols tied to tokenized compute, decentralized storage, and digital identity layers.

Grayscale's quarterly list has become a barometer for which projects institutional investors are increasingly watching. With the crypto market entering a more mature phase and regulatory clarity improving in several jurisdictions, the assets on Grayscale’s radar may serve as a snapshot of where institutional focus is heading next. The firm’s research team emphasizes that the list represents a cross-section of innovation, scalability, and market momentum — rather than purely short-term price speculation.

While Grayscale stops short of giving price targets or investment recommendations, its quarterly list has become a barometer for which projects institutional investors are increasingly watching. The assets on Grayscale’s radar may serve as a snapshot of where institutional focus is heading next. The firm’s research team emphasizes that the list represents a cross-section of innovation, scalability, and market momentum — rather than purely short-term price speculation.

In addition to the changes in its "Top 20" list, Grayscale has also launched a new AI crypto sector in its Q3 2025 market update. This sector focuses on cryptocurrencies and blockchain projects that leverage artificial intelligence to enhance their functionality and efficiency. The launch of this sector highlights Grayscale's commitment to staying at the forefront of technological innovation and adapting to the evolving needs of the crypto market.

The Q3 2025 update also mentions potential catalysts for the cryptocurrency market, including Bitcoin's all-time high (ATH) breakout, the GENIUS Act's stablecoin clarity, and Ripple's RLUSD expansion. These factors could significantly impact the market dynamics and drive the growth of various altcoins. However, it is important to note that these are potential catalysts and their actual impact on the market remains to be seen.

In summary, Grayscale's Q3 2025 update provides valuable insights into the altcoins that investors should watch in the coming quarter. The inclusion of AVAX and MORPHO in the "Top 20" list, along with the launch of a new AI crypto sector, reflects Grayscale's strategic approach to navigating the dynamic crypto market. Investors should closely monitor these developments and consider the potential implications for their portfolios.