Market Picks and Expected Q1 Gains

Sentiment status: Positive

Grayscale, the American investment bank and a key player in Bitcoin spot ETFs, has revealed its highly anticipated list of cryptocurrencies with the highest potential for the new year, focusing specifically on Q1 2025.

A total of 20 tokens, some launched in recent months with impressive gains exceeding 6,000%, are in the spotlight. Source: Grayscale X account

Top 20 Cryptocurrencies by Grayscale

The report, published by Grayscale's research division, highlights six new tokens among the 20 selections, including the recently launched HYPE from Hyperliquid and JUP from the decentralized exchange Jupiter.

The analysis also underscores the growing significance of decentralized artificial intelligence, the Solana ecosystem, and competition within the smart contract space. The full list includes:

• Bitcoin (BTC)

• Ethereum (ETH)

• Solana (SOL)

• Chainlink (LINK)

• Sui (SUI)

• Uniswap (UNI)

• Hyperliquid (HYPE)

• Aave (AAVE)

• Bittensor (TAO)

• Ethena (ENA)

• Optimism (OP)

• Vitual Protocol (VIRTUAL)

• Lido DAO (LDO)

• Helium (HNT)

• Arweave (AR)

• Jupiter (JUP)

• Aerodrome (AERO)

• Aaksh Network (AKT)

• Jito (JTO)

• Grass (GRASS)

Grayscale's Selection Highlights Key Trends Shaping the Crypto Market

Grayscale's picks are far from arbitrary; they reflect critical trends the firm expects to shape the cryptocurrency landscape in the near future.

“The combination of Donald Trump’s victory and its potential impact on crypto regulations, advancements in decentralized artificial intelligence (AI), and the flourishing Solana ecosystem are driving these selections” market analyst Enrique Nievas said.

Based on these pillars, Grayscale has added six new tokens to its list: Hyperliquid (HYPE), Ethena (ENA), Virtual Protocol (VIRTUAL), Jupiter (JUP), Jito (JTO), and Grass (GRASS). These assets, which entered the market in 2024, have demonstrated remarkable growth.

“HYPE, for instance, surged nearly 750% since its launch on November 29. Another standout is VIRTUAL, which recorded an astounding gain of over 6,000% since its debut earlier this year” Nievas added.

Emerging Players Driving Innovation

Hyperliquid positions itself as a Layer 1 blockchain, primarily offering a decentralized exchange (DEX) for perpetual futures. Jupiter and Jito operate within the Solana ecosystem, while Grass and Virtual Protocol focus on AI, with the latter built on Base, Coinbase’s blockchain network.

“The inclusion of Bittensor (TAO) in Grayscale’s Q4 2024 list already highlighted their interest in decentralized AI platforms. With the addition of VIRTUAL and GRASS for Q1 2025, this focus becomes even more pronounced, showcasing the importance the firm places on this sector for the future of the crypto market” crypto analyst Gonzalo Sánchez said.

These selections underline Grayscale's strategy of identifying transformative projects, hinting at a vibrant and evolving market in the coming quarters.

Smart Contracts and Leading Cryptocurrencies

Beyond the newly added tokens, Grayscale Research highlights the escalating competition among blockchain platforms designed for smart contracts, a sector historically led by Ethereum.

Analysts suggest that networks like Solana (SOL) may gain traction as investors explore alternative opportunities. High-performance Layer 1 networks such as Sui (SUI) and TON, the latter seamlessly integrated with the Telegram messaging app, are also flagged as emerging contenders.

A key factor influencing the value of smart contract platform tokens, according to Grayscale, is fee revenue generation.

“The firm emphasizes that a network’s ability to generate fees is directly correlated with its market capitalization and its capacity to reward token holders through mechanisms like burning or staking” explains analyst Gonzalo Sánchez.

In this context, Grayscale identifies ETH, SOL, SUI, and OP as pivotal platforms excelling in these metrics.

Bitcoin's Dominance and Grayscale's Consistent Picks

At the top of Grayscale’s list is Bitcoin (BTC), the cryptocurrency with the highest market capitalization, which surpassed historical highs in 2024, reaching prices above $100,000.

Other assets maintaining their position on Grayscale’s list include Chainlink (LINK), Uniswap (UNI), Aave (AAVE), and Bittensor (TAO), reinforcing their status as promising projects with strong growth potential according to the investment giant.

As the crypto landscape evolves, Grayscale’s insights provide a roadmap for identifying standout projects that may shape the market’s future trajectory.