Grayscale Research just published its new “Top 20” list for promising altcoins in Q3 2025. The list mostly remains the same from Q2, removing Lido DAO (LDAO) and Optimism (OP) to add Avalanche (AVAX) and MORPHO.
The firm assessed these altcoins on their market sector performance and individually. AVAX and OP are both smart contract protocols, but it swapped the two out due to company-specific circumstances.
The firm uses a diverse set of criteria to assess its preferred altcoins, tracking which market sectors perform better than others. Today, Grayscale released its new recommendations for Q3 2025:
We have updated the Grayscale Research Top 20. The Top 20 represents a diversified set of assets across Crypto Sectors that, in our view, have high potential over the coming quarter. This quarter’s new assets are Avalanche $AVAX and Morpho $MORPHO. All the assets in our Top 20… pic.twitter.com/gqy0NBLsE1
However, AVAX and OP are both smart contract protocols, and Grayscale assessed that this sector didn’t grow or shrink much. In other words, Avalanche’s business developments must account for its place in Grayscale’s list.
Grayscale further clarified that Ethereum’s new focus on interoperability could make an L-2 like Optimism redundant. AVAX’s organic growth stands out in contrast, making it a clear choice for Grayscale’s list.
The firm expressed similar concerns for LDAO, as the SEC might approve ETF staking soon, removing the blockchain’s main market appeal.
MORPHO grew significantly in the last year, but that isn’t why Grayscale put it on the Top 20 list. Instead, the research firm was highly optimistic about its potential to outperform competitors in its own market sector:
“This past month, Morpho announced Morpho V2, designed to bring DeFi to traditional financial institutions. Grayscale Research is optimistic about the future of on-chain lending activity, and Morpho seems well positioned to potentially capture a meaningful share of that growth,” Grayscale claimed.
Grayscale’s findings and commentary are insightful, but it’s important to remember that it’s a research firm, not a market mover. It cautioned potential investors that all 20 of these tokens are very volatile.
In fact, all four of these assets slightly decreased in value since Grayscale released this list, even the ones it was optimistic about.
According to Wall Street reports, both Amazon and Walmart are evaluating a move into the stablecoin market.
The reports, citing people familiar with the matter, stated that their effort is part of a broader push to improve payment efficiency and reduce processing fees.
Amazon and Walmart Eye Stablecoin
According to the report, the two retail giants are considering multiple options, including issuing their own digital currencies or collaborating within a stablecoin consortium.
These legacy systems often impose high fees and slow settlement times. In contrast, stablecoins promise near-instant transaction finality and significant cost reductions.
Despite the growing interest in these assets, the success of Amazon and Walmart’s stablecoin ambitions may hinge on the evolving US regulatory environment.
The proposed law aims to bring stability to the $251 billion stablecoin market by setting clear rules for issuance, reserve backing, and consumer protection. Its supporters argue that the regulatory clarity would boost public trust and encourage innovation in the emerging industry.
This limitation could pose a significant hurdle for firms like Amazon and Walmart. They would need to secure regulatory exemptions or operate through licensed banking subsidiaries.
Considering this, Alex Thorn, head of research at Galaxy Digital, noted that the retailers would likely need to establish or acquire a regulated financial entity to participate. He added that the process would involve navigating approvals from the Federal Reserve, the FDIC, and the Treasury.
Despite this potential convoluted process, Amazon and Walmart’s interest suggests that major retailers are preparing for a future where stablecoin payments become part of everyday commerce.
Bitcoin exchange-traded funds (ETFs) saw strong demand yesterday, with total net inflows exceeding $350 million. This followed BTC’s breakout past the $105,000 resistance level to close above the $110,000 price.
With strengthening bullish pressure, the leading coin is poised to continue its rally, further fueling the demand for ETF products.
BTC ETFs See $386 Million Inflows as Investor Confidence Returns
On Monday, BTC spot ETFs recorded net inflows of $386.27 million. This capital inflow marked a significant shift in market sentiment following last week’s decline.
Total Bitcoin Spot ETF Net Inflow. Source: SosoValue
These inflows reversed the previous week’s trend of net outflows, as BTC’s lackluster performance and waning investor confidence had dragged down demand. The surge followed BTC’s breakout above the $105,000 resistance level, with the asset closing at $110,263 during yesterday’s trading session.
As a result, renewed optimism spread across the market, driving heightened activity in ETF trading as well. On Monday, Fidelity’s CBOE-listed FBTC fund led the charge, posting the largest single-day net inflow among all US BTC ETF issuers.
BTC Futures and Options Flash Bullish as Price Holds Above $109,000
BTC trades at $110,227 at press time, up 4% over the past day. The coin’s funding rate has flipped back into positive territory on the derivatives front, signaling a shift toward bullish market positioning. It currently stands at 0.0017%.
The funding rate is a periodic payment exchanged between traders in perpetual futures contracts to keep prices aligned with the spot market.
When its value is positive, it indicates bullish sentiment and a higher demand for longs. It means that traders holding long BTC positions pay those holding short positions, a trend that could drive the coin’s value upward in the near term.
Furthermore, traders are buying BTC call options today, signaling growing bullish sentiment on the asset’s future price.
Therefore, the combination of institutional inflows, rising price momentum, and a return to positive sentiment in derivatives suggests that the market may be entering a renewed accumulation phase.
The Middle East and North Africa (MENA) region is quickly becoming a notable force in the push for global crypto adoption. With growing participation from institutions and enterprises and supportive regulations for Web3 technology, MENA is set to expand its impact.
BeInCrypto interviewed Stephan Apel, CEO of Outlier Ventures, to explore the characteristics of these tech-driven economies and their anticipated innovations.
Web3 Adoption and Market Growth
MENA has emerged as a significant center for Web3 development, facilitated by a combination of demographic, technological, and cultural factors. The region’s entrepreneurial spirit has also fostered an environment conducive to the adoption of decentralized technologies.
“The MENA market has set a standard for adopting next-gen technologies and using them to boost their economic transformation. This is especially true for Web3 technologies— the region recognised their potential early on, offering the resources needed for these projects to scale and thrive on both regional and global levels,” Apel told BeInCrypto.
Consequently, the region is witnessing an increase in startups, investors, and developers exploring Web3 and its diverse applications.
A 2024 Chainalysis report revealed that MENA was the seventh biggest crypto market worldwide. From July 2023 to June 2024, the region saw $338.7 billion in online crypto transactions, representing 7.5% of all crypto transactions globally.
Share of all cryptocurrency transaction value by region. Source: Chainalysis.
Notably, Turkey and Morocco ranked among the top 30 countries globally in crypto adoption. Turkey secured the 11th spot, while Morocco ranked 27th. These nations alone accounted for $137 billion and $12.7 billion in received cryptocurrency value, respectively.
Furthermore, the MENA region’s crypto activity is predominantly driven by institutional and professional players, as a substantial 93% of all value transferred involves transactions exceeding $10,000.
Meanwhile, Gulf Corporation Council (GCC) members have distinguished themselves through their ambitious technological initiatives.
MENA’s Strategic Shift Towards AI
The onset of artificial intelligence (AI) has prompted governments and businesses within the Middle East to acknowledge the global trend towards related advanced technologies. Countries like Qatar, Saudi Arabia, and the United Arab Emirates (UAE) are considering their strategic position concerning this technological transformation.
According to a report by PricewaterhouseCoopers (PwC), AI could contribute up to $15.7 trillion to the global economy in 2030. The consulting firm predicts that the Middle East will bring 2% of the total global benefits, equal to $320 billion.
MENA’s pioneering role in AI development. Source: PwC.
The PwC report also indicates that Saudi Arabia will see the largest absolute gains from AI by 2030, with an estimated US$135.2 billion added to its economy, or 12.4% of GDP. In terms of GDP percentage, however, the UAE is expected to see the greatest impact, approaching 14% of its 2030 GDP. Meanwhile, for GCC states Bahrain, Kuwait, Oman, and Qatar, AI is expected to contribute 8.2% of their GDP.
Given the region’s latest initiatives and investments in AI innovation, these numbers come as no surprise.
Saudi Arabia’s AI Development Initiatives
In 2016, the Saudi Arabian government launched Vision 2030, a program to promote economic, social, and cultural diversification. Integral to this vision is a strategic shift towards artificial intelligence and data-driven innovation, a key component of the nation’s economic diversification efforts.
Saudi Arabia is making notable advancements in AI. The country aims to reduce its reliance on oil by developing advanced technology sectors through targeted investments, infrastructure development, and workforce training.
“Fueled by its Vision 2030 initiative, Saudi Arabia has already created a thriving startup ecosystem, dedicated significant investment in emerging technologies,and designed policies to attract global talent and entrepreneurship,” Apel told BeInCrypto.
The Saudi Data and Artificial Intelligence Authority (SDAIA) spearheads Saudi Arabia’s push into artificial intelligence, shaping and implementing the country’s national data and AI strategy. The National Data Bank is a cornerstone of their efforts. It is designed as a central hub for data access and analysis, facilitating AI applications across public and private sectors.
Last November, Saudi Arabia also unveiled Project Transcendence. The $100 billion investment initiative focuses on accelerating the integration of AI and advanced technologies.
Similar to its neighbor, the UAE has actively pursued AI adoption.
UAE’s AI Strategy and Investments
In 2017, the UAE launched its National Strategy for Artificial Intelligence, which aims to make the country a global leader in the field by 2031. The UAE AI and Blockchain Council oversees this strategy, which impacts sectors like education, energy, and tourism.
The UAE is already reaping the benefits of its AI initiatives. In April, Microsoft announced a $1.5 billion investment in G42, an Abu Dhabi-based technology holding company. G42 is known for its data centers and the development of Jais, a leading Arabic-language AI model.
In September, G42 and Nvidia partnered to create AI-driven solutions for improved weather forecasting. The collaboration aims to advance climate-related technologies by using Nvidia’s Earth-2 platform, which enables AI-augmented climate and weather simulations.
Three months later, Abu Dhabi-based global technological ecosystem Hub71 partnered with Google to boost startup growth in the UAE. This collaboration will bring Google’s “Google for Startups” program to Abu Dhabi, including a dedicated accelerator for Hub71 startups in 2025.
He also drew attention to the planned convergence of AI and Web3 technologies in these prominent regions.
Convergence of AI, Web3, and IoT
Integrating the Internet of Things (IoT), blockchain, and AI technologies is gaining traction among businesses in the Middle East. By combining these technologies, organizations can access new avenues for growth, increase efficiency, and create novel user experiences.
In 2018, the Dubai Airport Freezone Authority launched Dubai Blink, a platform that integrates AI, blockchain, and virtual licenses to facilitate global trade. This system enhances supply chain innovation through ‘smart commerce’ by expediting trade with a unified online platform. Furthermore, it addressed the cumbersome process of supplier identification by using AI algorithms to streamline and accelerate the validation process.
Ultimately, MENA’s proactive approach to technological advancement, coupled with its strategic focus on Web3 and AI, signals a future where the region will be a pivotal architect in shaping the digital economy.
