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Crypto asset manager Grayscale has published an in-depth report outlining sectors poised for bullish growth in the final quarter of the year, amid a notable recovery in the cryptocurrency market, particularly for major players like Bitcoin (BTC) and various altcoins, which have reached their peak. price levels that we have not seen for over two months.
Grayscale highlights the most important trends in crypto
In his Thursday reportGrayscale has updated its Crypto Sectors Indexes, showcasing emerging themes within the digital asset industry. Key trends include the rise of decentralized artificial intelligence (AI) platforms, efforts to tokenize traditional assets, and the growing popularity of memecoins.
Notably, Bitcoin and the cryptocurrency sector have outperformed other market segments in 2024, likely due to the successful launch of spot Bitcoin. exchange traded products (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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Although Ethereum has made a 13% gain this year, it has underperformed Bitcoin but still outperformed many other cryptocurrencies. Grayscale’s Crypto Sectors Market Index (CSMI) has seen a slight decline of around 1% year to date, while the Smart Contract Platforms Crypto Sector Index is down around 11%, leaving The performance of Ethereum relatively stronger than its peers.
Despite the challenges, the asset manager believes that Ethereum remains the leader in the Smart Contract Platforms sector, with the highest number of applications, developers and fee revenue.
Top 20 cryptocurrencies for the coming quarter
In compiling the quarterly Top 20 list of cryptocurrencies, Grayscale thoroughly analyzes hundreds of digital assets. This list represents a diversified selection of assets with high potential for the coming quarter.
Among those highlighted by the company are notable performers such as Sui (SUI), Bittensor (TAO), Optimism (OP), Helium (HNT), Celo (CELO) and the UMA Protocol (UMA). However, below you will find the full list of other assets that Grayscale pays particular attention to.
Sui, a third-generation blockchain created by former Meta engineers, has made waves following a recent study network upgrade that increased transaction speed by 80% and exceeded Solana’s capabilities.
Optimism, an Ethereum Layer 2 solution, plays a crucial role in scaling the Ethereum network. It has developed a framework called ‘Superchain’, which is used by platforms such as Coinbase’s Layer 2 BASE.
Celo and UMA are capitalizing on 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 serves as an oracle network decentralized applications such as Polymarkt.
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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 field of decentralized physical infrastructure networks (DePIN), expanding the network to more than one million hotspots and generating significant fee revenue.
Bit tensorwhich focuses on the intersection of AI and crypto, has recently gained recognition within the Grayscale framework thanks to improvements in its market structure and provides a decentralized platform for AI innovation.
During this quarter’s adjustments, 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 provide investors with more attractive risk-adjusted returns in the coming months.
At the time of writing, the biggest gainer across all time frames in Grayscale’s top 20 is Bittensor’s TAO token, which has posted a gain of 86% over a fourteen-day time frame and a significant 841% year-to-date . a current trading price of $536.
Featured image of DALL-E, chart from TradingView.com
