Grayscale Updates Top 20 Crypto List Avalanche and Morpho Added

Grayscale has updated its list of top 20 digital assets, adding Avalanche (AVAX) and Morpho (MORPHO) while removing Lido Dao (LDO) and Optimism (OP). This update reflects the evolving landscape of the crypto market and the shifting priorities of investors.

Avalanche (AVAX) has been included in the top 20 list due to its growing traction as a smart contract platform. The platform has seen an increase in transactions and user engagement, which may be attributed to new partnerships in the gaming sector, including the popular MapleSTory ecosystem. This addition highlights the growing interest in blockchain technology within the gaming industry and its potential to drive further adoption.

Morpho (MORPHO), a decentralized lending protocol built on Ethereum and Base, has also been added to the top 20 list. Morpho manages over $4 billion in Total Value Locked (TVL) and is the second-largest lending platform in decentralized finance. The recent launch of Morpho V2, which targets integration with traditional financial institutions, further solidifies its position as a key player in the DeFi space.

On the other hand, Lido Dao (LDO) and Optimism (OP) have been removed from the top 20 list despite their strategic importance in the Ethereum ecosystem. Lido Dao faces increased competition from centralized staking solutions, which may be favored by upcoming US regulations. Optimism, which powers major layer-2 networks like Coinbase’s Base and Uniswap’s new chain, has not shown significant short-term upside, leading to its removal from the list. However, both projects are still considered strategically important for the long term.

Grayscale's update comes as the crypto market continues to face challenges, including regulatory developments and evolving macroeconomic conditions. The firm reiterates that all assets in its top 20 list are high-risk, high-volatility investments. Despite these challenges, innovation in areas like AI, DeFi, and smart contract platforms remains strong, offering valuable insights for investors with a high-risk appetite.

Looking ahead, Bitcoin is expected to benefit from renewed demand as a hedge against global uncertainty and inflation. The newly formalized Artificial Intelligence Crypto Sector is also gaining traction, with AI-related tokens gaining legitimacy and market cap. Decentralized finance platforms like Morpho, which offer efficient and customizable on-chain lending solutions, are drawing attention for their strong fundamentals. Smart contract platforms like Avalanche continue to see organic transaction growth, driven by new gaming platforms and stablecoin activity.