In a recent research note, Grayscale has added several new tokens from the artificial intelligence (AI) and decentralized finance (DeFi) spaces to its list of top 20 tokens to watch in the first quarter of 2025.
New Additions to the Top 20 Tokens List
Grayscale’s Q1 2025 watch list now includes Hyperliquid (HYPE), Ethena (ENA), Virtuals (VIRTUAL), Jupiter (JUP), Jito (JTO), and Grass (GRASS). Each of these new additions is a result of one of three industry trends: a more favorable US regulatory environment, breakthroughs in decentralized AI, or growth in the Solana ecosystem.
Industry Trends Shaping the Market
- Friendlier US Regulatory Environment: The incoming administration’s promises to appoint industry-friendly leaders and make the US a global leader in crypto are expected to benefit DeFi applications.
- Breakthroughs in Decentralized AI: AI agents are expected to take on more prominent roles within decentralized communities, with early use cases emerging in crypto staking and on-chain trading.
- Growth in Solana Ecosystem: The Solana ecosystem has seen significant growth, with total value locked surging from around $1.5 billion in January to nearly $8.5 billion as of December.
New Tokens and Their Industry Trends
AI Platforms
- Virtuals (VIRTUAL): Benefits from breakthroughs in decentralized AI
- Grass (GRASS): Also benefits from breakthroughs in decentralized AI
DeFi Apps
- Ethena (ENA): Benefits from growth in the Solana ecosystem
- Jupiter (JUP): Native to Solana and benefits from growth in the Solana ecosystem
- Jito (JTO): Also native to Solana and benefits from growth in the Solana ecosystem
High-Performance Layer-1 Network
- Hyperliquid (HYPE): Benefits from breakthroughs in decentralized AI
Continued Inclusion of Previous Themes
Grayscale continues to be excited about themes from previous quarters, including:
- Ethereum Scaling Solutions: Represented by Optimism (OP)
- Tokenization: Represented by Chainlink (LINK) and Helium (HNT)
Competitive Market Segment
Smart contract platforms, such as Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and Sui (SUI), are considered the most competitive market segment in the digital assets industry. The proliferation of alternative L1 blockchain networks has partially accounted for why ETH underperformed its peers in 2024.
Industry Experts Weigh In
- "In the US, with Trump’s victory, I am aggressively bullish on the US becoming a global leader in the space by the end of the year." – Raj Brahmbhatt, CEO of Web3 settlement company Zeebu
- "AI agents are expected to take on a more prominent role within decentralized communities. Crypto staking and on-chain trading will emerge as early AI use cases." – J.D. Seraphine, CEO of Web3 AI developer Raiinmaker
Conclusion
Grayscale’s updated top 20 tokens to watch in Q1 2025 reflects the growing importance of AI and DeFi applications in the digital assets industry. The addition of new tokens from these spaces is expected to benefit from industry trends such as a friendlier US regulatory environment, breakthroughs in decentralized AI, and growth in the Solana ecosystem.
About Grayscale
Grayscale is a leading asset manager that provides investors with access to a range of digital assets through its funds. The company’s Q1 2025 watch list is updated quarterly and reflects the firm’s expertise in the digital assets industry.
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