Grayscale, a leading crypto asset manager, updated its investment strategy, revealing the top 20 cryptocurrencies poised for significant outperformance in the closing quarter of 2024. Its quarterly rebalance process concluded on September 20.
The Grayscale Research team, tasked with analyzing hundreds of digital assets, has identified emerging themes within the sector. These themes include the rise of decentralized AI platforms, the tokenization of traditional assets, and the sustained popularity of memecoins.
Grayscale Adds 6 New Altcoins to the Top 20 List
This reshuffling has introduced new entrants while reaffirming faith in established names.
“The Top 20 represents a diversified set of assets across Crypto Sectors that, in our view, have high potential over the coming quarter (Exhibit 4). Our approach incorporates a range of factors, including network growth/adoption, upcoming catalysts, sustainability of fundamentals, token valuation, token supply inflation, and potential tail risks,” Grayscale said.
Among the newcomers to Grayscale’s Top 20 is Sui, a blockchain praised for its recent performance improvements. After a network upgrade, Sui’s transaction speed has surged by 80%, outpacing even Solana’s capabilities.
Also on the list is Bittensor, which brings the convergence of crypto and AI into sharper focus. Designed to foster the development of a global, open AI system, Bittensor reflects an improvement in its market structure, notably in liquidity and pricing sources.
Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season
Another noteworthy addition is Optimism, an Ethereum Layer 2 scaling solution. Gaining traction through its ‘Superchain’ framework, Optimism is adopted by notable projects like Coinbase’s Layer 2 solution.
Helium, specializing in decentralized physical infrastructure networks (DePIN), also secured a spot. It leads to the creation of efficient resource allocation models for wireless network coverage, boasting over a million total hotspots and network fee revenues.
The mobile-first blockchain Celo is transitioning to an Ethereum Layer 2 network, focusing on stablecoins and payment solutions. Its rising adoption in developing nations, particularly in Africa, facilitated by Opera Browser’s MiniPay app, marks a remarkable milestone. Notably, Celo has outperformed Tron in daily stablecoin transactions.
UMA Protocol rounds out the list of new entries, underpinning the critical role of oracles in blockchain’s predictive market spaces. Supporting Polymarket, a leading prediction market platform, UMA ensures transparent and decentralized resolution of market outcomes.
Finally, Grayscale’s Top 20 also continues to support stalwarts like Bitcoin, Ethereum, and Solana alongside other players such as Toncoin, Chainlink, and Uniswap. However, this quarter saw the exclusion of assets like Render, Mantle, ThorChain, Pendle, Illuvium, and Raydium.
Read more: What Is Altcoin Season? A Comprehensive Guide
Finally, Grayscale also emphasized the inherent risks in crypto investment, particularly noting the high volatility.
“Investing in the crypto asset class involves risks, some of which are unique to the crypto asset class, including smart contract vulnerabilities and regulatory uncertainty. Moreover, all of the assets in our Top 20 have high volatility and should be considered high risk and will not be suitable for all investors,” Grayscale warned.
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