Grayscale Lists SUI, TAO, OP, CELO Among Top ‘High Potential’ Tokens for Q4 2024

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With the final quarter of the year just four days away, Grayscale Research has revealed its updated list of the top 20 crypto assets expected to outperform in the coming quarter. The revised list comes with six new altcoins, including Sui (SUI), Bittensor (TAO), Optimism (OP), Celo (CELO), Helium (HNT), and UMA Protocol (UMA).

Grayscale Research notes that these new additions reflect the crypto market themes the team is “focusing on.”

“The Top 20 represents a diverse set of assets in the Crypto sectors that we believe have high potential in the coming quarter. Our approach incorporates a number of factors, including network growth/adoption, future catalysts, sustainability of fundamentals, token valuation, token supply inflation, and potential risks,” the team wrote.

“Grayscale believes that these new additions, together with the existing assets in the Top 20, offer compelling investment opportunities with growth potential and high risk-adjusted returns,” they added.

Based on the list, focus areas are decentralized AI, high-performance infrastructure, as well as projects with “unique adoption trends.” Grayscale Research also highlights decentralized AI platforms, traditional asset tokenization and the continued appeal of memecoins as key emerging themes.

According to the team, Sui is credited with an 80% increase in transaction speed following a network upgrade, while Bittensor improves crypto and AI integration. In particular, Grayscale currently offers Sui and Bittensor trust products, namely Grayscale Sui Trust and Grayscale Bittensor Trust, which were launched last month.

Optimism, an Ethereum layer 2 solution, and Helium, known for its decentralized physical infrastructure networks, also made the list, while Celo’s transition to an Ethereum layer 2 network and its growing adoption in payment solutions are key factors in its inclusion.

Celo’s increased use of stablecoins has been noted not only by Grayscale Research, but also by Vitalik Buterin. The Ethereum co-founder recently praised Celo’s milestone in daily active stablecoin addresses, driven by increased adoption and demand for apps in Africa.

The UMA protocol, which supports the Polymarket prediction platform, is the final addition. UMA’s presence on the list underscores the importance of oracles in blockchain predictive markets.

Bitcoin, Ethereum and Solana are still in the spotlight

Established crypto assets such as Bitcoin, Ethereum, and Solana still hold the top spots in Grayscale’s portfolio. The research team states that Bitcoin and the crypto sector have outperformed other segments this year, likely due to the debut of US spot Bitcoin ETFs and favorable macro conditions.

As noted in the analysis, Ethereum underperformed Bitcoin but outperformed most other crypto assets. Despite competition from prominent blockchains like Solana, Ethereum maintains its dominance in terms of applications, developers, fee revenue, and locked-in value.

Grayscale Research expects the entire smart contract platform sector to grow, benefiting Ethereum due to its network effects. In addition to Ethereum’s high network reliability, security and decentralization, the team believes that its regulatory status gives it a competitive advantage over competing networks.

Apart from making room for new crypto assets, the research team removed six from the list. These tokens are Render, Mantle, THORChain, Pendle, Illuvium and Raydium. According to the team, while these assets still hold value within the broader crypto ecosystem, the revised list offers more compelling risk-adjusted returns for the coming quarter.

Grayscale Research also warns of the inherent risks of crypto investing, noting high volatility and unique challenges such as smart contract vulnerabilities and regulatory uncertainty.

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