Grayscale Updates Q3 2025 Top 20 Crypto List: AVAX & MORPHO In, LDO & OP Out

Grayscale Investments, a leading digital asset manager, has revised its Top 20 Crypto Assets list for Q3 2025, adding Avalanche (AVAX) and Morpho (MORPHO) while removing Lido DAO (LDO) and Optimism (OP)136. This reshuffle reflects shifting institutional priorities toward high-growth blockchain ecosystems and DeFi innovation, while phasing out assets facing competitive or structural challenges.

Key Changes & Rationale

AVAX Added – Recognized for its high-performance blockchain, Avalanche has seen surging adoption in GameFi, enterprise solutions, and RWA tokenization, with C-Chain transactions jumping from 250K to 1.2M post-Etna upgrade24.

MORPHO Added – The DeFi lending protocol has gained traction with $4B+ TVL and integration into Coinbase, positioning it as a leader in institutional DeFi adoption49.

LDO Removed – Facing centralization concerns and rising competition in liquid staking post-Ethereum’s Shanghai upgrade26.

OP Removed – Despite its Layer 2 scaling role, Optimism struggles with weak token value capture and governance centralization57.

Market Implications

Institutional Shift: Grayscale’s moves signal a preference for real-world utility (AVAX) and DeFi institutionalization (MORPHO) over speculative narratives49.

Regulatory Influence: The removal of LDO highlights growing scrutiny on staking centralization, while Morpho’s inclusion underscores compliant DeFi growth27.

This update reinforces crypto’s maturation, where adoption, revenue, and scalability now drive institutional capital flows more than hype cycles39.