Emily Walker
Grayscale, a prominent asset management firm, has revamped its compilation of the top 20 tokens with high potential. The updated lineup includes six newcomers, two of which are Jupiter ($JUP) and Jito ($JTO), both operating on the Solana blockchain.
Jupiter stands out as one of the foremost aggregators for decentralized exchanges on Solana, boasting the highest Total Value Locked (TVL) among applications on the platform. Jito, on the other hand, is a well-regarded liquid staking protocol that racked up over $550 million in fee revenue during 2024.
The other four new entries are Virtuals Protocol ($VIRTUALS), Grass ($GRASS), Ethena ($ENA), and Hyperliquid ($HYPE).
Why Grayscale Selected These Tokens
In a report dated December 30, 2024, Grayscale clarified that the tokens in its list align with one of three key factors:
- The repercussions of Trump’s electoral victory on decentralized finance (DeFi) and staking.
- Recent advancements in decentralized AI technologies.
- The increasing prevalence of the Solana ecosystem.
Grayscale anticipates that tokens reflecting these factors will likely thrive in 2025.
The inclusion of two Solana projects signifies a potential shift within the cryptocurrency landscape. Traditionally, Bitcoin and Ethereum have been at the forefront, but that may soon be shifting.
Additionally, Solana ($SOL) outperformed both $BTC and $ETH for the first time ever. After struggling during 2022 due to the FTX collapse, $SOL has rebounded impressively, boasting a growth of 2,000% since then.
According to Glassnode’s analysis, $SOL has seen 727 days pass since its low in 2022. During this period, $SOL has exceeded the price performance of both $BTC and $ETH for 344 days.
Are $SOL ETFs on the Horizon for 2025?
Grayscale’s growing focus on Solana might suggest plans to launch $SOL ETFs, similar to their previous endeavors with $BTC.
There is anticipation for significant demand for $SOL ETFs, primarily because $SOL’s market cap stands at $91 billion, significantly lower than Ethereum’s $403 billion market cap. This means even minor investments in $SOL could drive considerable value increases.
A company like Grayscale would be keen to capitalize on such an opportunity; however, challenges remain. The $SOL ETF proposal is currently under the scrutiny of the US Securities and Exchange Commission (SEC), with a preliminary ruling expected by the end of January 2025.
Final Thoughts
This development is encouraging for those investing in $SOLX, a new Layer-2 scaling solution for Solana aimed at addressing scalability challenges within the main network. Some industry authorities, including ClayBro, refer to $SOLX as a potential 100x token.
Nonetheless, exercising caution and conducting thorough research is crucial before committing funds to any investment, including popular meme coins.