Grayscale Shakes Up Top 20: AVAX & MORPHO In, LDO & OP Out – What’s Driving the Shift?
- Why Did Grayscale Add AVAX and MORPHO to Its Top 20?
- Why Were LDO and OP Dropped?
- Sector Shifts: Where Is Institutional Money Flowing?
- FAQ: Decoding Grayscale’s Top 20 Moves
Grayscale’s latest Top 20 reshuffle isn’t just a routine update—it’s a strategic signal to the crypto market. Avalanche (AVAX) and Morpho (MORPHO) have secured spots due to their strong fundamentals and institutional appeal, while Ethereum ecosystem staples Lido DAO (LDO) and Optimism (OP) were axed despite their dominance. The move highlights Grayscale’s pivot toward tokens with clearer value capture, real-world utility, and institutional narratives. Below, we break down the key drivers behind these changes, sector trends, and what this means for crypto investors.
Why Did Grayscale Add AVAX and MORPHO to Its Top 20?
Avalanche’s inclusion reflects its growing institutional tailwinds, particularly in tokenizing real-world assets (RWAs). Despite a 3.4% price dip this week, AVAX has seen a 275% surge in daily transactions since May, fueled by projects like Republic’s profit-sharing "Republic Note" launching on its chain. Grayscale’s bet seems less about short-term trading spikes and more about AVAX’s role in RWA adoption—a sector gaining traction among yield-hungry investors.
Morpho’s rise, meanwhile, underscores a preference for lean, efficient DeFi protocols. Its Katana yield strategy and capital-efficient design contrast with governance-heavy legacy players like Lido. Grayscale’s nod suggests that clean tokenomics and measurable value accrual now TRUMP sheer ecosystem dominance.
Why Were LDO and OP Dropped?
Lido’s exit hints at mounting regulatory and competitive pressures on staking services. While LDO remains the largest liquid staking provider, its token has struggled to reflect protocol growth—a red flag for Grayscale’s metrics-driven approach. Similarly, Optimism’s L2 dominance didn’t save OP; its negligible fee revenue and lack of token utility likely sealed its fate. Grayscale’s message? Ecosystem scale alone isn’t enough—tokens must directly capture value.
Sector Shifts: Where Is Institutional Money Flowing?
Grayscale’s sector performance data reveals stark divergences:
| Sector | Q2 2025 Returns |
|---|---|
| Smart Contract Platforms | +12% |
| Financial Assets | +8% |
| Consumer & Culture | -9% |
| Utilities & Services | -11% |
Ethereum-based apps in consumer/utility segments are lagging, while platforms like Avalanche and Morpho thrive. The takeaway? Investors now favor tokens with tangible revenue streams over speculative use cases.
FAQ: Decoding Grayscale’s Top 20 Moves
What does AVAX’s inclusion signify?
AVAX’s spot highlights institutional interest in RWA tokenization, not just chain metrics. Its transaction surge and projects like Republic Note showcase real-world utility.
Why did Morpho replace Lido?
Morpho’s modular DeFi design and clear value accrual beat Lido’s governance-heavy model. Grayscale now prioritizes tokens that directly reward holders.
Is Optimism’s L2 dominance irrelevant?
Not irrelevant, but insufficient. OP’s fee revenue hasn’t matched ecosystem growth—a dealbreaker for Grayscale’s short-term momentum focus.
