Grayscale Q3 2025 Portfolio Update: AVAX & MORPHO Added
Grayscale Reshapes Q3 2025 Crypto Portfolio
Grayscale Investments has updated its Top 20 digital asset list for Q3 2025, reflecting a strategic shift in its investment approach. Notable additions include Avalanche (AVAX) and Morpho (MORPHO), while Lido (LDO) and Optimism (OP) have been removed.
- AVAX and MORPHO added to the Top 20.
- LDO and OP removed due to regulatory and economic factors.
- Grayscale highlights Avalanche's growing ecosystem and Morpho's DeFi innovations.
Avalanche's Ascent
Grayscale cites Avalanche's robust on-chain transaction volume as a key driver for its inclusion. High user activity, particularly in gaming (e.g., MapleStory) and stablecoin usage, showcases a thriving ecosystem. This growth positions Avalanche as a leading smart contract platform.
Grayscale's report emphasizes Avalanche's scalability and high transaction throughput. The current price of AVAX above $17, even in a bear market, further supports its potential.
Morpho's DeFi Innovation
Morpho's inclusion stems from its significant contributions to decentralized finance (DeFi). The launch of Morpho V2, which combines traditional finance and DeFi through market-driven, fixed-rate loans with variable terms, is a major factor. Grayscale views Morpho, alongside Aave and Maple Finance, as well-positioned to benefit from the expansion of on-chain lending.
Grayscale highlights Morpho V2's alignment with institutional requirements, offering predictable loan structures and supporting various assets, including real-world assets (RWAs). This flexibility contributes to its growth potential.
Reasons for Removals
The removal of Lido (LDO) is attributed to regulatory uncertainty surrounding staking, which could impact its fee revenue. Optimism (OP), despite its Layer 2 scaling solution, failed to capture sufficient economic value, leading to its exclusion. These decisions align with Grayscale's refined asset selection criteria.
Grayscale's Investment Strategy
Grayscale's Top 20 list retains a diverse range of high-volatility assets, including Bitcoin and Ethereum. The firm acknowledges the inherent risks associated with these assets but anticipates significant growth by Q3 2025. This portfolio update reflects a targeted approach, favoring projects with strong fundamentals and market relevance.
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