XRP News Today: Grayscale Excludes XRP, ADA, Adds Avalanche, Morpho to Top 20 Altcoin List

Grayscale Investments has made significant adjustments to its Q3 2025 "Top 20" altcoin list, reflecting a strategic shift in its investment focus. The asset manager has added Avalanche (AVAX) and Morpho (MORPHO) to its list, while excluding Ripple (XRP) and Cardano (ADA). This move has sparked considerable interest and debate within the crypto community, as both XRP and ADA have been actively developing their ecosystems and have seen increasing odds of ETF approvals.

The decision to exclude XRP and ADA is particularly noteworthy given their prominence in the crypto market. XRP, known for its use in cross-border payments, and ADA, which is built on a proof-of-stake blockchain, have both been subject to regulatory scrutiny and market volatility. Despite these challenges, both tokens have shown resilience and continued development, making their exclusion from Grayscale's list all the more intriguing.

Grayscale's inclusion of Avalanche and Morpho signals a focus on real-world adoption and ecosystem momentum. Avalanche, one of the top smart contract platforms by market cap, has experienced a notable uptick in network activity, driven by increased gaming and stablecoin usage. This organic growth indicates strengthening utility for AVAX beyond just hype. Meanwhile, Morpho has emerged as a serious contender in the DeFi lending space, boasting over $4 billion in Total Value Locked and significant fee generation. With its latest upgrade, Morpho V2, aiming to connect traditional finance with on-chain lending, Grayscale sees potential for the protocol to carve out a larger role in DeFi’s evolution.

The exclusion of prominent altcoins like XRP and ADA from Grayscale’s updated Top 20 list appeared to weigh on investor sentiment, with both tokens seeing declines. This timing coincided with Grayscale’s announcement of a new investment vehicle, the Grayscale Space and Time Trust. This initiative centers around the Space and Time blockchain, which is designed to support verifiable, real-time data processing for smart contracts, AI, and dApps. Therefore, while certain legacy assets are being sidelined, Grayscale’s evolving strategy suggests a pivot toward innovative platforms designed to meet the growing computational demands of the decentralized future.

Grayscale's decision to exclude XRP and ADA, despite their active developments and increasing ETF approval chances, raises questions about the metrics and market narratives shaping institutional preferences. The asset manager cited individual project performance and sector-specific trends as key factors behind the updates, especially in the realm of smart contract platforms. This strategic reshuffle signals a shift in the crypto investment landscape, with a greater emphasis on real-world adoption and ecosystem momentum.

Grayscale's decision influences market perceptions, accentuating emerging technology over legacy networks. This aligns with increased trading activity for newly included assets. The latest quarterly refresh highlights a strategic pivot towards emerging Layer 1s such as Avalanche and promising DeFi protocols, with XRP and ADA not making the list. Grayscale Research drives these selections, showing a preference for high-performance sectors.

Avalanche's inclusion, as noted by exchange tickers, boosted its trading volume and price, whereas Morpho experienced increased ecosystem engagement. Conversely, excluded tokens might witness diminished market interest due to this update. Trading volumes and on-chain activity for specific tokens can shift remarkably based on Grayscale's decisions, which often steer institutional and retail investments. The absence of official Grayscale statements from leadership emphasizes reliance on the Research division's strategic outline.

The updated Top 20 list reflects Grayscale’s institutional research-driven outlook, highlighting a shift in preference toward sectors like high-performance Layer 1s (Avalanche) and DeFi protocols (Morpho), while notably skipping XRP, Cardano (ADA), and other former heavyweights. Historically, Grayscale announcements have correlated with short-term pricing impacts, though their longer-term influence on crypto sectors varies significantly. Market enthusiasts are watching for further alignments in DeFi and Layer 1 landscapes.