Grayscale's research team recently updated the list of 20 promising cryptocurrencies with strong potential for growth in Q1/2025, with 6 new additions: HYPE, ENA, VIRTUAL, JUP, JTO, and GRASS.
Grayscale updates the list of 20 promising cryptocurrencies with strong potential for growth in Q1/2025
Quarterly, the research team of the asset management giant Grayscale will analyze hundreds of projects to keep up with crypto market trends and rebalance the Crypto Sector Index Series (CSIS) - a suite of Cryptocurrency Index products developed in collaboration with FTSE Russell, a subsidiary of the London Stock Exchange (LSE).
After this process, Grayscale Research will provide a list of 20 cryptocurrencies with strong growth potential for the next quarter, based on a series of factors:
- Network growth rate.
- Sustainability of the business model.
- Significant related events that could drive price appreciation.
- Token valuation (FDV) as well as supply inflation and inherent risks.
Unlike the top 20 promising cryptocurrencies for Q4/2024, this quarter Grayscale Research has updated the list of tokens related to 3 core trends:
- The US election and its potential impact on DeFi, Staking.
- AI technology and the use of blockchain by AI Agents.
- Growth potential in the Solana ecosystem.
In addition to the 3 new trends mentioned above, Grayscale Research said it remains interested in projects related to the Ethereum Rollup trend (scaling solutions on Ethereum), Tokenization (RWA) and DePIN.
The removed tokens include: NEAR, STX, MKR, CELO, UMA, and TON.
— Wu Blockchain (@WuBlockchain) December 30, 2024
In addition to the names that continue to "maintain their performance" in this list from the previous quarter, such as Bitcoin, Ethereum, Solana, Sui, Optimism, Lido DAO, Chainlink, Uniswap, Aave, Bittensor, Helium, Arweave, Aerodrome, Akash Network, the list of 20 promising cryptocurrencies for Q1/2025 has seen both additions and removals.
Accordingly, 6 cryptocurrencies have been added to the Q1/2025 Top 20 list, including:
Hyperliquid (HYPE): A Layer-1 blockchain designed to support on-chain financial applications. The main application is a decentralized exchange (DEX) for perpetual futures, with a fully on-chain order book.
Ethena (ENA): The Ethena protocol has developed a new stablecoin, USDe, primarily supported by collateralized positions in Bitcoin and Ether.
Virtual Protocol (VIRTUAL): A platform for creating AI Agents on Layer-2 Base. The AI Agents created by Virtuals can think, learn, and interact with users on various platforms like TikTok, Telegram, or games like Roblox.
Jupiter (JUP): The leading DEX Aggregator on Solana, with the highest TVL among all applications on the network. As individual traders increasingly participate in the crypto market through Solana and speculation increases around Solana-based memecoins and AI Agent tokens, Grayscale Research believes Jupiter is well-positioned to capitalize on this growing market activity.
Jito (JTO): The liquid staking protocol on Solana. Jito has seen significant growth in adoption over the past year and provides one of the best financial profiles among all cryptocurrencies, generating over $550 million in fee revenue in 2024.
Grass (GRASS): A decentralized data network that rewards users for sharing their unused internet bandwidth through a Chrome extension. This bandwidth is used to efficiently crawl the web and collect data, which is then sold to companies and AI developers to train machine learning (ML) models.
20 cryptocurrencies that Grayscale predicts have strong growth potential in Q1 2025
With additions, there will also be removals. To include 6 projects that fit the trends, Grayscale has also chosen to remove 6 names - Near Protocol (NEAR), Stacks (STX), MakerDAO (MKR), Celo (CELO), Uma (UMA), and Toncoin (TON).
Grayscale said the value in each of these projects remains high and is an important factor in the cryptocurrency ecosystem. However, in terms of the potential for strong profit growth in Q1/2025, the 6 names above will not fit this criteria.
Compiled by Coin68
