Yeliz Akmaca 
Grayscale has updated its Top 20 crypto assets list for the third quarter of 2025. The list provides important clues for investors about the future. Notably, Avalanche (AVAX) and Morpho (MORPHO) stood out due to ecosystem growth and advancements in the credit protocol.
Avalanche and Morpho Make a Strong Entry into the Grayscale List
Grayscale has announced its updated Top 20 crypto asset list for Q3 2025. According to the list published on Friday, Lido DAO (LDO) and Optimism (OP) were removed. They were replaced by Avalanche (AVAX) and Morpho (MORPHO). The company has also excluded major altcoins like XRP and Cardano (ADA) this quarter. These decisions highlight Grayscale’s strategic focus on decentralized credit protocols and on-chain growth-oriented assets.
Avalanche (AVAX) recently increased its trading volume. This growth was driven by its integration with the popular game MapleStory. Additionally, stablecoin transactions within its ecosystem have surged. Avalanche has secured a strong position among smart contract platforms. On the other hand, Morpho (MORPHO) stands out with a Total Value Locked (TVL) of over $4 billion. The project blends decentralized lending with traditional finance.
Grayscale Research foresees growth in on-chain lending. The company stated:
“Last month, Morpho announced Morpho V2, designed to bring DeFi to traditional financial institutions. Grayscale Research is optimistic about the future of on-chain lending activity, and Morpho appears well-positioned to capture a meaningful share of that growth.”
Morpho’s recently launched Morpho V2 is part of this approach. Grayscale considers this move to be strategic.
Lido and Optimism Removed from the List: Why?
To make room for Avalanche and Morpho, Grayscale removed Lido (LDO) and Optimism (OP) from the list. Lido had gained attention through its staking services. However, increasing regulatory uncertainty accelerated Grayscale’s decision to exclude it. This uncertainty may also negatively affect revenue streams.
Although Optimism is spreading technologically, it struggles to generate economic value. For this reason, Grayscale decided to reassess its position.
Grayscale’s Q2 2025 report is also noteworthy. Bitcoin remains the leader in the Currencies segment. Transaction volume in smart contract platforms increased. However, the decline in memecoin interest has limited revenue. This indicates that user activities do not directly generate income. The company sees rising interest in decentralized artificial intelligence (AI) and DeFi lending. Grayscale is monitoring 24 AI tokens worth $15 billion, led by Bittensor (TAO). This demonstrates the growing importance of the blockchain-AI intersection.
Grayscale’s new list sends clear signals to investors. Avalanche and Morpho stand out with their scalable and sustainable structures.
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