Grayscale Adds Avalanche, Morpho to Top 20 Assets, Drops Lido DAO, Optimism

Grayscale Research has updated its top 20 assets for the third quarter of 2025, adding Avalanche (AVAX) and Morpho (MORPHO) to the list. This move is a response to the increasing on-chain activity and the robust growth in decentralized lending, reflecting a shift in market dynamics and project-specific fundamentals.

The inclusion of AVAX and MORPHO in the top 20 list is significant as it often enhances institutional allocator interest. This change could prompt shifts in fund flows and index product allocations, particularly in the DeFi and smart contracts sectors. The decision to add these assets is driven by their strong performance in on-chain transaction activity and decentralized lending growth, respectively.

Conversely, Lido DAO (LDO) and Optimism (OP) have been removed from the top 20 list. This removal is attributed to competitive pressure from centralized staking services and uncertainty regarding token revenue distribution. The decision to remove these assets highlights the challenges they face in the current market landscape, where new assets can quickly gain traction and displace established players.

The update by Grayscale Research serves as an important signal for future investment trends and confidence in the crypto market. The inclusion or removal of assets from Grayscale's lists often prompts scrutiny from institutions, and the decision to add AVAX and MORPHO reflects their potential in the DeFi sector. This update underscores the importance of organic growth and the future of DeFi in traditional finance, as well as the need for investors to stay informed about the latest developments and trends in the crypto market.

Ask Aime: What's the impact of Grayscale Research's latest top 20 assets update on the DeFi sector?