Grayscale Research has refreshed its list of top 20 altcoins for the first quarter of 2025, introducing six new cryptocurrencies. This updated list focuses on digital assets that Grayscale believes have strong potential in the near future.

The new additions reflect three key trends shaping the crypto market: the upcoming U.S. election and its potential impact on decentralized finance (DeFi) and staking regulations, advancements in decentralized AI tech and blockchain integration with AI, and the rapid growth of the Solana ecosystem.

The six new tokens on the list are Hyperliquid (HYPE), Ethena (ENA), Virtual Protocol (VIRTUAL), Jupiter (JUP), Jito (JTO), and Grass (GRASS).

Here’s what makes these tokens stand out:

– **Hyperliquid (HYPE):** This blockchain powers financial tools and supports a decentralized exchange for perpetual futures. What’s unique? It uses a fully on-chain order book to handle trades.

– **Ethena (ENA):** Known for introducing USDe, a stablecoin backed by Bitcoin (BTC) and Ethereum (ETH) hedges. It also offers staking opportunities based on price differences between spot and futures markets.

– **Virtual Protocol (VIRTUAL):** A tool for creating tokenized AI agents on Base, an Ethereum Layer 2 network. These AI agents can act independently, interact with their environment, and engage with users.

– **Jupiter (JUP):** The go-to decentralized exchange aggregator on Solana. With the highest total value locked (TVL) among Solana apps, it’s a key player in the ecosystem.

– **Jito (JTO):** Another Solana project, Jito specializes in liquid staking and earned over $550 million in fee revenue last year.

– **Grass (GRASS):** A platform that lets users share unused internet bandwidth through a simple Chrome extension. This bandwidth is sold to AI developers to train machine learning models, giving users a way to earn money from their unused data.

To make room for these new entries, Grayscale rotated out some tokens, including Celo (CELO). While these removed tokens still play a role in the broader crypto space, the updated list better reflects Grayscale’s focus on assets with higher potential for returns next quarter.

The report also discusses how competition among smart contract platforms is heating up. Ethereum, despite a strong end to 2024, is feeling pressure from rivals like Solana and The Open Network. These competitors are making headway by solving the “blockchain trilemma” — finding a balance between scalability, security, and decentralization.

Fee revenue remains a major factor in determining the success of smart contract platforms. That’s why Ethereum, Solana, Sui, and Optimism earned spots on Grayscale’s top 20 list. These platforms not only generate sustainable revenues but also provide long-term value to their ecosystems.