Grayscale Research has released its quarterly analysis of the digital asset market, highlighting key trends and updating its list of top-performing tokens for Q2 2025. The report assesses hundreds of assets based on network growth, adoption metrics, upcoming catalysts, and fundamental sustainability, providing investors with a curated view of high-potential opportunities in the rapidly evolving crypto landscape.
This quarter, the focus shifts toward tokens that demonstrate real-world utility beyond pure speculation, particularly in the areas of Real World Assets (RWA), Decentralized Physical Infrastructure (DePIN), and Intellectual Property Tokenization (IP). The newly updated Top 20 list introduces three new tokens reflecting these themes: SYRUP, GEOD, and IP.
Q1 2025 Market Performance Overview
The first quarter of 2025 saw a broad decline in cryptocurrency valuations. The FTSE/Grayscale Crypto Sectors Index, which tracks the performance of major digital assets, fell by 18%. This downturn mirrored weaknesses in technology stocks and other risk-sensitive assets.
Bitcoin’s on-chain metrics showed resilience, with the number of addresses holding at least $1 worth of BTC reaching a new all-time high of 48 million. In contrast, monthly active users remained steady at around 11 million, suggesting growing interest in Bitcoin’s store-of-value properties rather than its use as a medium of exchange.
Smart contract platforms, particularly Solana, experienced a slowdown in activity—largely due to reduced meme coin trading. Despite this, Solana still accounted for nearly half of all smart contract platform fees in Q1, generating approximately $390 million.
Applications across the crypto ecosystem—including segments like Finance, Consumer & Culture, and Utilities & Services—collectively generated over $2.6 billion in fees, marking a 99% increase compared to Q1 2024.
Performance of Q1 2025 Additions
In the previous quarter, Grayscale added six tokens to its Top 20 list: HYPE, ENA, VIRTUAL, JUP, JTO, and GRASS. Unfortunately, all six tokens saw significant price declines from January 1 to the end of Q1:
- Hyperliquid (HYPE): Down 33%
- Ethena (ENA): Down 53%
- Virtual Protocol (VIRTUAL): Down 80%
- Jupiter (JUP): Down 30%
- Jito (JTO): Down 22%
- Grass (GRASS): Down 38%
While each token experienced substantial drawdowns, those who bought near quarterly lows saw partial recoveries—with GRASS bouncing back 77% from its lowest point. This illustrates the high volatility and timing challenges inherent in crypto investing.
Introducing Q2 2025’s New Top Additions
Grayscale’s research team has narrowed its focus to three emerging themes for Q2 2025, each representing a practical use case for blockchain technology:
Real World Assets (RWA)
RWAs refer to the tokenization of physical or traditional financial assets on the blockchain. This brings liquidity, transparency, and accessibility to markets that were previously illiquid or exclusive.
Decentralized Physical Infrastructure (DePIN)
DePIN projects use crypto-economic incentives to build and maintain physical infrastructure networks—such as wireless connectivity, geolocation data, or energy grids—in a decentralized manner.
Intellectual Property Tokenization (IP)
IP tokenization allows creators to monetize, license, and trade intellectual property rights on the blockchain. This introduces new funding and royalty models for content creators and rights holders.
New Tokens Added to the Top 20
Based on these themes, Grayscale has added three new tokens to its Q2 2025 watchlist:
Maple (SYRUP)
Maple is a decentralized lending protocol serving both institutional and DeFi-native users. Its Total Value Locked (TVL) has grown to over $600 million, with annualized network revenue reaching $20 million in the last 30 days. The platform is increasingly collaborating with traditional finance institutions to expand its credibility and reach.
Geodnet (GEOD)
Geodnet is a DePIN project building a global network of real-time kinematic (RTK) base stations that provide centimeter-accurate location data. With over 14,000 devices across 130 countries, the network supports applications in agriculture, autonomous vehicles, and robotics. Its annualized revenue has grown 500% year-over-year to over $3 million.
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Note: GEOD is a low-market-cap token with limited exchange listings, making it higher risk than other assets on the list.
Story Protocol (IP)
Story Protocol aims to tokenize the intellectual property market, valued at over $70 trillion. By placing IP on-chain, the protocol enables transparent licensing, royalty distribution, and investment in creative works. It has already onboarded music from major artists including Justin Bieber and BTS, and recently launched its own blockchain.
Continued Themes from Previous Quarters
Grayscale continues to monitor established trends such as Ethereum scaling solutions, AI-blockchain integration, and DeFi staking mechanisms. Tokens like Optimism (OP), Bittensor (TAO), and Lido DAO (LDO) remain on the Top 20 list due to their strong fundamentals and continuing development.
Tokens Removed from the List
This quarter, Akash (AKT), Arweave (AR), and Jupiter (JUP) were removed from the Top 20. While these projects remain valuable within the crypto ecosystem, Grayscale believes the new selections offer better risk-reward profiles for Q2.
Frequently Asked Questions
What is Grayscale’s Top 20 list?
Grayscale’s Top 20 is a quarterly selection of cryptocurrencies chosen based on criteria such as network growth, tokenomics, real-world use cases, and upcoming developments. It is designed to highlight assets with high potential in the coming quarter.
Why were RWA, DePIN, and IP chosen as focus areas?
These categories represent growing trends in practical blockchain applications beyond speculation. They offer real-world utility, revenue generation, and long-term sustainability, aligning with a broader industry shift toward tangible value.
How risky are these tokens?
All cryptocurrencies carry significant risk, including smart contract vulnerabilities, regulatory uncertainty, and high volatility. The tokens on this list are no exception—especially newer, lower-cap assets like GEOD. Always conduct your own research and consider your risk tolerance.
Can I invest directly in Grayscale’s Top 20?
The list is meant for research and educational purposes only. It is not an investment fund or direct offering. Investors should use it as a starting point for further due diligence.
What happened to the tokens added in Q1?
All six tokens added in Q1 fell in price from the time they were added to the end of the quarter. This highlights the importance of timing, market cycles, and portfolio diversification in crypto investing.
Where can I monitor these sectors?
Grayscale’s Crypto Sectors tool allows users to track performance across 227 digital assets categorized into five market segments. It covers approximately 85–90% of the total crypto market capitalization.
Conclusion
Grayscale’s Q2 2025 report reflects a strategic pivot toward blockchain applications with real-world impact and sustainable economic models. While the crypto market remains volatile and speculative activity persists, the emergence of sectors like RWA, DePIN, and IP tokenization signals maturation within the industry.
Investors are encouraged to approach high-potential but high-risk assets with caution, perform independent research, and consider their overall investment strategy before making decisions. 👉 Get advanced market insights
As always, this report is intended for informational purposes only and should not be taken as financial advice. The crypto market is rapidly changing—what holds potential today may evolve tomorrow.