Grayscale Research has updated its top 20 altcoin list for the first quarter of 2025, adding six new digital assets.

The list highlights cryptocurrencies the company believes demonstrate strong potential for the upcoming quarter.

The Six Tokens

According to the December 30 report, this update emphasizes tokens linked to three primary market themes: the U.S. election and its potential regulatory implications for decentralized finance (DeFi) and staking, breakthroughs in decentralized AI technologies and blockchain adoption by AI agents, and the growth of the Solana ecosystem.

Based on these factors, Grayscale has added Hyperliquid (HYPE), Ethena (ENA), Virtual Protocol (VIRTUAL), Jupiter (JUP), Jito (JTO), and Grass (GRASS) to its Top 20 list.

Hyperliquid, a Layer 1 blockchain, powers financial applications and operates a decentralized exchange for perpetual futures with a fully on-chain order book. On the other hand, Ethena introduced USDe, a stablecoin backed by hedged positions in Bitcoin (BTC) and Ethereum (ETH), offering staking opportunities tied to price differences between spot and futures markets.

Virtual Protocol enables the creation of tokenized AI agents on Base, an Ethereum Layer 2 network. This functionality allows agents to interact autonomously with their surroundings and users.

Jupiter, the leading decentralized exchange aggregator on Solana, has the highest total value locked (TVL) of any application on the network. Another Solana project, Jito, is a liquid staking protocol that generated over $550 million in fee revenue in 2024.

The last of the six, Grass, operates as a decentralized data-sharing platform. It compensates users for sharing unused internet bandwidth via a Chrome extension. This bandwidth is then sold to AI developers for training machine learning models, offering a unique approach to monetizing data.

In addition to these new entries, Grayscale rotated out some tokens, including Celo (CELO), from the Top 20. While these removed tokens remain relevant to the broader crypto ecosystem, the company explained that the updated selection better reflects the risk-adjusted returns expected for the upcoming quarter.

Smart Contract Platforms

Grayscale’s latest report also highlighted the intensifying competition among smart contract platforms. Despite major wins in the final quarter of 2024, Ethereum faces growing pressure from competitors like Solana and The Open Network.

The research explains that these platforms are gaining traction by addressing the ‘blockchain trilemma,’ balancing scalability, security, and decentralization with innovative solutions.

Fee revenue also continues to play a critical role in driving the value of smart contract platform tokens. For that reason, Grayscale included Ethereum, Solana, Sui, and Optimism in its top 20 list for Q1 2025 as standout smart contract platforms.

According to the asset manager, these projects can generate sustainable fee revenues while delivering long-term value to their ecosystems.

The post Grayscale Updates Top 20 Altcoin List for Q1 2025 with These 6 New Additions appeared first on CryptoPotato.

FTX creditors are furious again. This time, it’s about a wild rumor claiming the bankrupt crypto exchange will distribute $16 billion in cash within 60 days starting January 3. Sunil, an FTX creditor, called out AIXBT, accusing them of spreading outright lies.

He clarified that FTX doesn’t even have $16 billion available. Let’s clear up the math. FTX has about $13 billion in cash right now and plans to hold back $6.5 billion. That leaves between $6.5 billion and $7.5 billion for the first distribution.

That’s not pocket change, but it’s far from the dreamland figures being thrown around. Sunil said, “False: Distribution does not start 3rd Jan and $16bn within 60 days.”

What FTX actually has to work with

FTX collapsed in November 2022. It went from being one of the biggest crypto exchanges in the world to the biggest crypto joke. Thanks to Sam Bankman-Fried and his web of mismanagement and fraud, the exchange filed for Chapter 11 bankruptcy. Alameda Research, the trading firm tied to FTX, crumbled right along with it.

Now, fast forward to December 2024, and FTX’s financial cleanup is still a mess. As of now, the company has $13 billion in cash. That number might hit $14 billion by March 2025. But here’s the thing: FTX wants to hold on to $6.5 billion of that for disputed claims and other recovery efforts.

The bankruptcy team, led by CEO John J. Ray III, has clawed back assets from every corner of the crypto world. Venture capital portfolios, lawsuits, and other liquidated holdings are expected to add another $5 billion to $7 billion.

First payouts and the timeline you can actually believe

FTX’s Chapter 11 reorganization plan goes live on January 3. After that, the first distributions are expected within 60 days. The company’s priority is smaller creditors, those owed $50,000 or less. But the total amount available for that initial payout sits around $6.5 billion and $7.5 billion.

Sunil explained the timeline in no uncertain terms. He said the first $7 billion would be distributed by March 25, 2025. The rest? That’s tied up in disputed claims. FTX has set aside 50% of these claims—about $7 billion—for a reserve. This money won’t go anywhere until all the disputes are resolved. If history is any guide, that could take years.

To handle the chaos, FTX is leaning on BitGo and Kraken to manage the payouts. These companies have been tapped to make sure creditors get what they’re owed. And it’s no small task, considering the sheer number of claims they’re dealing with.

FTT token rockets while creditors wait

While creditors are busy sorting through what they’ll actually get, the market is having a field day. The FTX Token (FTT), which was nearly worthless just a few months ago, has surged.

As of press time, it’s trading at $3.50. That’s a 245% jump since September, pushing its market cap over $1.1 billion. Optimism around the payouts is driving the FTT rally.

FTX’s recovery plan aims to repay creditors up to 119% of their claims. For smaller investors, that’s a big deal. If you were owed $10,000, for instance, you might end up with $11,900.

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