Crypto asset manager Grayscale has published a detailed report outlining sectors poised for bullish growth in the final quarter of the year amid a notable recovery in the cryptocurrency market, especially for major players like Bitcoin (BTC) and several altcoins, which have reached levels of prices not seen in more than two months.
Shades of Gray Highlights Top Trends in Crypto
On your Thursday reportGrayscale has updated its crypto sector indices, showcasing emerging themes in the digital asset industry. Key trends include the emergence of decentralized artificial intelligence (AI) platforms, efforts to tokenize traditional assets, and the growing popularity of memecoins.
Notably, Bitcoin and the cryptocurrency sector outperformed other market segments in 2024, likely due to the successful launch of Bitcoin spot. exchange traded products (ETP) in the US earlier this year and favorable macroeconomic conditions following the interest rate reduction by the Federal Reserve (Fed) on September 18.
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Although it has gained 13% this year, Ethereum has underperformed Bitcoin but still outperformed many other cryptocurrencies. Grayscale’s Crypto Sector Market Index (CSMI) has seen a slight decline of around 1% year-to-date, with the Smart Contract Platforms Crypto Sector Index falling approximately 11%, making Ethereum Performance relatively stronger than its peers.
Despite the challenges, the asset manager considers that Ethereum continues to be the leader in the smart contract platform sector, boasting the largest number of applications, developers and fee income.
Top 20 cryptocurrencies for the next quarter
When producing its quarterly list of the top 20 cryptocurrencies, Grayscale thoroughly analyzes hundreds of digital assets. This list represents a diverse selection of assets with high potential for the next quarter.
Among those highlighted by the company are highlights such as Sui (SUI), Bittensor (TAO), Optimism (OP), Helium (HNT), Celo (CELO) and UMA Protocol (UMA). However, below is the full list of assets other than these that Grayscale pays special attention to.
Sui, a third-generation blockchain created by former Meta engineers, made waves after a recent network update which increased its transaction speed by 80%, surpassing Solana’s capabilities.
Optimism, an Ethereum Layer 2 solution, plays a critical role in scaling the Ethereum network. It has developed a framework called “Superchain,” which is used by platforms like Coinbase’s Layer 2 BASE.
Celo and UMA are capitalizing on unique trends, with Celo focused on stablecoin usage and payment solutions in developing regions, especially Africa. The platform recently surpassed Tron in stablecoin usage, while UMA serves as an oracle network for decentralized applications such as Polymercado.
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Helium’s inclusion in the Top 20 reflects Grayscale’s preference for category leaders with sustainable revenue models. The project has established itself as a leader in decentralized physical infrastructure networks (DePIN), growing its network to over a million hotspots and generating significant fee revenue.
Bittensorwhich focuses on the intersection between AI and cryptography, has recently gained recognition in the Grayscale framework due to improvements in market structure, offering a decentralized platform for AI innovation.
In this quarter’s adjustments, Grayscale eliminated several assets, including Render, Mantle, ThorChain, Pendle, Illuvium, and Raydium. While Grayscale sees value in these projects, the revised Top 20 list aims to deliver more attractive risk-adjusted returns to investors in the coming months.
At the time of writing, the biggest winner across all time frames on Grayscale’s Top 20 list was Bittensor’s TAO token, which has seen gains of 86% over the fourteen-day period and a substantial 841% YTD. year, resulting in a current trading price of $536.
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