What happened?
Digital asset management company Grayscale recently released a “Q1 2025 Cryptocurrency Report,” in which they added six new tokens to their “Top 20” watchlist for this quarter.
These tokens cover areas such as decentralized AI, Layer 1 blockchain, and the Solana ecosystem.
The report also explains that there was fierce competition in the Layer 1 blockchain space in 2024. In addition to well-known platforms like Ethereum and Solana, the development of high-performance blockchains such as Sui and TON also attracted a lot of attention from developers.
Decentralized AI and Solana ecosystem tokens are worth watching
Digital asset management company Grayscale recently released a “Q1 2025 Cryptocurrency Report,” in which they added six tokens to their “Top 20” watchlist for this quarter. The newly added tokens are Hyperliquid (HYPE), Virtuals (VIRTUAL), Ethena (ENA), Jupiter, Jito, and Grass.
These tokens cover areas such as decentralized AI, Layer 1 blockchain, and the Solana ecosystem. Hyperliquid is an efficient Layer 1 blockchain, while Grass and Virtuals belong to decentralized AI platforms. As for Ethena, Jupiter, and Jito, they focus on decentralized finance (DeFi) applications, with Jupiter and Jito being native projects on Solana.
Grayscale stated that the selection of these “Top 20” tokens was influenced by major industry trends, including a friendly regulatory environment in the United States, decentralized AI technology, and the rapid development of the Solana ecosystem. In 2024, Solana’s total value locked (TVL) in DeFi grew from $1.5 billion at the beginning of the year to $8.5 billion by the end of the year.
Decentralized AI: The operation and management of AI systems are moved from traditional centralized institutions to decentralized networks, using blockchain technology to achieve transparent, secure, and open AI applications.
Grayscale’s Top 20 watchlist for Q1 2025.
Intense competition in Layer 1 blockchain
In addition to the noteworthy tokens, Grayscale also pointed out that certain areas still remain attractive in recent quarters, including Ethereum scaling solutions (such as Optimism), tokenization (such as Chainlink), and decentralized physical infrastructure (DePIN, such as Helium).
Furthermore, the report explains that there was fierce competition in the Layer 1 blockchain space in 2024. In addition to well-known platforms like Ethereum and Solana, the development of high-performance blockchains such as Sui and TON also attracted a lot of attention from developers, providing users with alternative options. As a result, Ethereum, the big brother of smart contracts, also faced threats.
However, the ecosystem maintains its position in the smart contract market with a stable technical foundation and widespread adoption.
Grayscale’s report highlights the potential development of DeFi and decentralized AI technology in the future, as well as the improvement of the regulatory environment in the United States, which is crucial for driving the market. With the relaxation of US regulations, expansion of the Solana ecosystem, and the emergence of diverse Layer 1 networks, market participants will continue to find new opportunities in an evolving market.
Sources: Cointelegraph, The Block, Grayscale