Grayscale Investments has revealed its updated list of the Top 20 cryptocurrencies for Q3 2025, and the selections have stirred up conversation across the crypto community. Notably, the asset manager added Avalanche (AVAX) and Morpho (MORPHO) while removing Lido DAO (LDO) and Optimism (OP). However, the decision to continue excluding XRP and Cardano (ADA), two of the most established altcoins, has raised eyebrows among analysts and investors alike.
This quarterly reshuffling reflects Grayscale’s dynamic evaluation strategy, focused on capturing emerging opportunities and adjusting to sector trends. But the omission of XRP and ADA—despite their strong ecosystems and potential upcoming ETF approvals—adds another layer of intrigue.
Despite their long-standing presence in the top tier of crypto market capitalization, XRP and Cardano are once again missing from Grayscale’s Top 20 list. Their exclusion has become a recurring theme in recent quarters, even as both tokens continue to make headlines for their technology developments and legal/regulatory momentum.
The timing of their exclusion is especially interesting given the backdrop of pending regulatory decisions. According to Bloomberg analysts, there’s a 95% chance of approval for ETFs tied to XRP and Litecoin. Meanwhile, Cardano’s own ETF application remains under SEC review, with a decision expected around July 13, following a 45-day delay.
Grayscale’s choice to sideline XRP and ADA from its top picks ahead of this decision suggests a more conservative or strategic approach, possibly influenced by perceived regulatory risks or market dynamics.
Taking the place of Lido DAO and Optimism are Avalanche and Morpho, both of which have recently shown momentum.
Avalanche (AVAX) continues to be a major player in the smart contract platform space. Grayscale’s inclusion of AVAX may reflect growing optimism around the Avalanche ecosystem, particularly after investment firms such as VanEck and Invesco Galaxy submitted filings for a spot Avalanche ETF.
Morpho, on the other hand, represents a relatively newer name in the decentralized finance (DeFi) space. Its inclusion is a signal of Grayscale’s forward-looking stance. According to Grayscale, Morpho’s recent unveiling of Morpho V2, which aims to bridge DeFi with traditional finance, is a major reason for the token’s entry into the list.
Grayscale commented that Morpho is “well-positioned to capture meaningful market share” in on-chain lending, especially as institutional interest in DeFi continues to expand.
News of the continued exclusion had a quick impact on the market. In the hours following Grayscale’s Q3 update, XRP fell by 4.8%, while Cardano dipped by 2.9%. Over the past 30 days, both assets have underperformed the broader crypto market, with XRP down 9% and ADA down a steep 26%.
This price action reflects how closely traders are watching institutional sentiment, including actions from firms like Grayscale. The absence of ADA and XRP from such a high-profile list may be interpreted as a lack of institutional conviction, at least in the short term.
The Q3 Top 20 list includes a mix of well-known and emerging crypto assets, showcasing Grayscale’s diversified approach. The full list features:
Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) , Hyperliquid , Sui , Chainlink (LINK) , Avalanche (AVAX) , Uniswap (UNI) , Aave (AAVE) , Bittensor (TAO) , Morpho (MORPHO)
…along with several others across sectors such as DeFi, infrastructure, and Layer-1 protocols.
This list reflects Grayscale’s ongoing strategy to maintain exposure to a wide range of use cases, from established assets to promising newcomers. The inclusion of Morpho, for example, highlights a shift in focus toward institutional DeFi, while Avalanche’s presence may align with expectations around ETF approval and ecosystem growth.
Grayscale has not publicly disclosed detailed reasoning for excluding XRP and Cardano. However, the decision may relate to several possible factors:
Regulatory uncertainty: XRP’s ongoing legal history with the SEC may still be a point of caution.
Market performance: ADA’s sharp decline over the past month may have influenced its exclusion.
Ecosystem momentum: Compared to rising stars like Morpho, some analysts argue that ADA’s current development pace appears stagnant.
Still, these exclusions are likely to remain controversial, especially if XRP or ADA sees a strong rebound following any favorable regulatory decisions in July.
Grayscale’s Q3 crypto list reflects more than just market performance—it’s a snapshot of where institutional eyes are focused. The inclusion of Avalanche and Morpho suggests growing confidence in smart contract scalability and the evolution of DeFi.
Meanwhile, the continued omission of XRP and Cardano serves as a reminder that not even legacy altcoins are guaranteed a place in institutional portfolios. As the SEC weighs key decisions in the coming weeks, the status of these excluded assets could soon change—and with it, their standing in future Grayscale rankings.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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