Grayscale Doubles Down on Avalanche for Q3—Snubs XRP & Cardano (Again)

Grayscale just played favorites—and the crypto world is buzzing. Avalanche gets the nod for Q3, while XRP and Cardano collect dust in the rejection pile. Again.

Here’s the kicker: Grayscale’s move screams institutional confidence in AVAX’s tech stack—scalability, speed, and those sweet, sweet subnets. Meanwhile, XRP’s legal limbo and Cardano’s ‘academic-first’ vibe left them sidelined. Surprise? Hardly.

Wall Street’s take? ‘Diversification is for people who like mediocre returns.’ But hey, at least the bag-holders got a fresh meme out of it.

TLDR

• Grayscale added Avalanche and Morpho to its Q3 Top 20 Crypto Assets list.
• XRP and Cardano remain excluded from the list despite recent industry developments.
• Avalanche was included due to its consistent network activity and institutional integration.
• Optimism and Lido DAO were removed from the list due to limited recent performance.
• XRP’s exclusion comes despite a 95 percent chance of ETF approval according to analysts.

Grayscale Investments has revised its Q3 Top 20 Crypto Assets list, adding Avalanche and Morpho while excluding XRP and Cardano. The updated list comes ahead of major regulatory decisions and reflects a shift in Grayscale‘s asset evaluation criteria. Despite ongoing industry developments, XRP and ADA remain outside the portfolio, raising questions across the crypto community.

Grayscale Adds AVAX to Q3 Crypto List

Grayscale included Avalanche (AVAX) in its Q3 update, indicating increased confidence in the asset’s long-term potential. Despite minimal recent growth in the smart contract sector, AVAX secured a place in the updated list. Grayscale cited the asset’s continued development and sustained activity as contributing factors.

Although Grayscale did not disclose full criteria, Avalanche’s integration with institutions and consistent network performance likely influenced the decision. The network’s DeFi ecosystem has expanded moderately, maintaining relevance in a competitive field. Avalanche’s inclusion suggests confidence in its future role despite sector-wide stagnation.

At the same time, other smart contract platforms like Optimism were removed due to limited recent performance and adoption concerns. This reshuffle suggests Grayscale emphasized sustained growth and strategic progress over short-term price action. AVAX now joins Ethereum and Solana among top layer-one protocols in the portfolio.

XRP Still Excluded Despite ETF Speculation

Grayscale has again excluded XRP from its Top 20, even as ETF approval odds for the token reportedly increase. Industry analysts now estimate a 95% chance of an XRP ETF approval, but that has not influenced Grayscale’s position. The ongoing legal status and perceived uncertainty may continue to weigh against XRP’s inclusion.

Ripple’s regulatory progress, including favorable rulings, did not shift Grayscale’s view for Q3. The absence suggests the firm prioritizes legal clarity and sustained adoption metrics in its selection process. XRP’s price dropped nearly 5% following the release of the updated list.

Despite these developments, XRP maintains strong trading volume and market capitalization. However, Grayscale favors tokens with cleaner regulatory standing or stronger utility metrics. Without further changes in status, XRP may remain on the sidelines in future updates.

Cardano Omitted Amid Steep Price Drop

Cardano also failed to make the Q3 list, continuing its absence despite a recent uptick in network upgrades and activity. ADA declined over 25% in the past month, which may have influenced Grayscale’s evaluation. Its ongoing development progress did not result in inclusion this quarter.

Although Cardano has launched new features and enhanced scalability, market response remained subdued. Grayscale may have viewed the lack of investor momentum as a limiting factor. The exclusion reflects a broader pattern of preference toward assets with strong short-term performance.

With an SEC decision on a potential spot ETF still pending, Cardano’s position remains uncertain. The anticipated July 13 ruling may impact future evaluations. However, for Q3, Grayscale chose to prioritize other assets demonstrating stronger current traction.