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Crypto asset manager Grayscale has published an in-depth report describing the sectors that are ready for business growth in the last half of the year amid a significant recovery in the cryptocurrency market, especially for major players such as Bitcoin (BTC) and various altcoins, which have reached. price levels are not observed within two months.
Grayscale Highlights Key Trends In Crypto
Its Thursday reportGrayscale has updated its Crypto Sectors Indexes, showing emerging themes within the digital asset industry. Key trends include the rise of artificial intelligence (AI) platforms, traditional branding efforts, and the growing popularity of memecoins.
Notably, Bitcoin and the cryptocurrency sector performed better than other market segments in 2024, possibly due to the successful launch of spot Bitcoin. products for sale (ETPs) in the US earlier this year and favorable macroeconomic conditions following the Federal Reserve’s (Fed) interest rate cut on September 18.
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While gaining 13% this year, Ethereum has underperformed Bitcoin but still outperforms many other cryptocurrencies. Grayscale’s Crypto Sectors Market Index (CSMI) is down about 1% year to date, while the Smart Contract Platforms Crypto Sector Index is down about 11%, making Ethereum functionality it is strong compared to its peers.
Despite its challenges, the asset manager finds that Ethereum remains the leader of the Smart Contract Platforms industry, boasting the highest number of applications, developers, and revenue.
Top 20 Cryptocurrencies Next Quarter
In producing its quarterly Top 20 list of cryptocurrencies, Grayscale thoroughly analyzes hundreds of digital assets. This list represents a diverse selection of high-potential assets for the coming quarter.
Among those highlighted by the company are prominent players such as Sui (SUI), Bittensor (TAO), Optimism (OP), Helium (HNT), Celo (CELO) and UMA Protocol (UMA). However, below is a full list of other assets beyond these that Grayscale pays special attention to.
Sui, a third-generation blockchain developed by former Meta developers, has made waves following the recent network development that improved its acquisition speed by 80%, surpassing Solana’s capabilities.
Optimism, an Ethereum Layer 2 solution, plays an important role in growing the Ethereum network. We developed a framework called “Superchain,” which is used by platforms like Coinbase’s Layer 2 BASE.
Celo and UMA use unique trends, with Celo focusing on the use of stablecoin and payment solutions in developing regions, especially in Africa. The platform recently surpassed Tron in stablecoin usage, while UMA operates as an oracle network suspended requests such as Polymarket.
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Helium’s inclusion in the Top 20 reflects Grayscale’s preference for category leaders with sustainable revenue models. The project has established itself as a leader in the extended infrastructure network (DePIN), expanding its network to more than a million hotspots and generating significant revenue.
Bittensorfocused on the intersection of AI and crypto, has recently gained recognition within the Grayscale framework due to the development of the market structure, providing a decentralized platform for AI innovation.
In this quarter’s transition, Grayscale rotated several assets, including Render, Mantle, ThorChain, Pendle, Illuvium, and Raydium. While Grayscale sees value in these projects, the revised Top 20 list aims to offer attractive risk-adjusted returns to investors in the coming months.
At the time of writing, the biggest time-frame winner in Greyscale’s top 20 list is Bittensor’s TAO token, which has seen 86% gains over the fourteen-day time frame and a whopping 841% for the year to date, resulting in trading prices today are 536 $.
Featured image from DALL-E, chart from TradingView.com