Grayscale Adds AI and DeFi Tokens to Q1 2025 Watch List

Grayscale has expanded its top 20 tokens to watch for Q1 2025, adding tokens from artificial intelligence platforms and decentralized finance (DeFi) applications, according to a Dec. 30 research note. The updated list now includes Hyperliquid (HYPE), Ethena (ENA), Virtuals (VIRTUAL), Jupiter (JUP), Jito (JTO), and Grass (GRASS). Grayscale highlighted three key industry trends behind the additions: a friendlier U.S. regulatory environment, advancements in decentralized AI, and growth in the Solana ecosystem. Virtuals and Grass are AI platforms, Hyperliquid is a high-performance layer-1 (L1) network, and Ethena, Jupiter, and Jito are DeFi applications. Both Jupiter and Jito are native to the Solana blockchain. “In addition to the new themes, we continue to be excited about themes from previous quarters such as Ethereum scaling solutions, tokenization, and decentralized physical infrastructure (DePIN),” Grayscale said. Grayscale continues to feature tokens like Optimism (OP), Chainlink (LINK), and Helium (HNT) to represent these ongoing themes. The firm noted that smart contract platforms — including Ethereum (ETH), Solana (SOL), Avalanche (AVAX), and Sui (SUI) — remain among the most competitive segments in the digital assets industry. Grayscale attributed Ethereum’s underperformance in 2024 partly to the rise of alternative L1 blockchain networks. Industry Trends Cryptocurrencies saw significant gains following Donald Trump’s election victory, as his administration is expected to adopt crypto-friendly policies. Trump has pledged to appoint leaders supportive of the industry to regulatory agencies and make the U.S. “the world’s crypto capital.” Raj Brahmbhatt, CEO of Web3 settlement firm Zeebu, said, “In the US, with Trump’s victory, I am aggressively bullish on the US becoming a global leader in the space by the end of the year.” DeFi on Solana is particularly well-positioned, with total value locked rising from $1.5 billion in January to nearly $8.5 billion in December, per DefiLlama. Jito, a Solana staking pool, reported over $100 million in monthly revenue from priority fees and tips in November and December. AI is also expected to play a larger role in decentralized communities, with applications in staking and onchain trading, according to J.D. Seraphine, CEO of Web3 AI developer Raiinmaker.