According to asset management firm Grayscale’s Q4 2024 Insights report released yesterday, the firm assessed Ethereum’s year-to-date performance and updated its research arm’s top 20 watch list.
Ethereum performed well
Grayscale noted in the report that although Ethereum has lagged behind Bitcoin this year, with a gain of 13%, it still outperformed most cryptocurrency assets.
“Our Cryptocurrency Sector Market Index (CSMI) – which measures returns across the asset class – is down about 1% this year. In fact, excluding Ethereum, the Smart Contract Platforms Sector Index is down about At 11%, this means that Ethereum also performs better than other assets in its market sector.”
Despite this, Ethereum is still facing increasing competition. Multiple smart contract new public chains including Solana, Toncoin, Tron, Near, etc. have made progress, and new assets like Sui have also joined the “crypto Currency Sector". These networks are all competing for transaction fee revenue, and the superior user experience provided by some of these networks may result in a decline in Ethereum Layer 1 fee market share. However, Grayscale emphasized that Ethereum still has its advantages compared to its competitors:
“It remains the leader in the space with the most applications, the most developers, the highest 30-day fee revenue, and the most value locked in smart contracts.”
Grayscale TOP20 list
Grayscale, on the other hand, also updated its top 20 watch list for its research arm in the report.
Render, Mantle, ThorChain, Pendle, Illuvium, and Raydium have been removed this season. However, Grayscale emphasized that the removed projects do not mean that they are not optimistic about future value. They are still an important part of the cryptocurrency ecosystem, but the company believes that the revised top 20 list may provide better services for the next quarter. risk-adjusted returns.
New coins include SUI, TAO, OP, HNT, CELO and UMA. The company explained that both Sui and Optimism can be regarded as models of high-performance infrastructure, Celo and UMA benefit from the unique application trend of stable coins and prediction markets, and Helium is a leader in the field of DePIN (decentralized physical infrastructure network) , while Bittensor is a prominent player in the field of combining cryptocurrency and AI.
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