Grayscale, a leading crypto asset manager, has updated its Top 20 altcoin list for the third quarter of 2025, adding Avalanche (AVAX) and Morpho (MORPHO) as new assets with strong growth potential. The update was announced on June 26 as part of Grayscale's Q3 2025 Crypto Sectors report.
Avalanche (AVAX) was added due to a recent surge in transaction volume and user activity, attributed partly to new gaming integrations like the onboarding of the popular video game MapleStory as well as increased stablecoin usage. This suggests organic growth within Avalanche's ecosystem.
Morpho (MORPHO) earned its place thanks to rapid expansion as one of the largest decentralized lending protocols, now ranking second in Total Value Locked (TVL) with over $4 billion. The recent launch of Morpho V2 aims to further bridge decentralized finance (DeFi) with traditional financial institutions, signaling significant growth potential. Grayscale highlighted lending-focused assets including Morpho, Aave (AAVE), and Maple Finance (SYRUP) as well positioned for future growth.
To accommodate the new additions, Grayscale removed Lido DAO (LDO) and Optimism (OP) from the list. Regulatory uncertainty around staking and challenges in capturing economic value were cited as reasons for their removal.
The report also noted overall crypto sector trends, with Bitcoin leading gains in the currencies segment and smart contract platforms recording increased transaction volumes despite falling fee revenues as memecoin activity declined. Additionally, Grayscale has established a new AI Crypto Sector tracking 24 AI-related tokens worth $15 billion, led by Bittensor (TAO).