Grayscale report: Mixed performance YTD, Ethereum in focus for Q3

Grayscale has published a report to assist the community in enhancing its understanding of the crypto sphere. The idea is also to provide a reasonable roadmap to investors so that they can navigate their way around volatility. A summary of the report talks about why the focus will be on Ether in the third quarter and what kind of performance the market, in a broad sense, delivered in terms of year-to-date.

Mixed performance in the crypto market despite Bitcoin gains

Grayscale has highlighted a notable dip in the Crypto Sectors Market Index (CSMI) in its report. The Index has dropped by 3% YTD. Bitcoin, however, has gained 50%—except the gain dates back to the time the report was published or the observation was made ahead of drafting the piece. 

BTC went up 102.39% last year and is now listed at $61,554.62 at press time. It further reflects a surge of 0.93% in the last 24 hours. The report indicates that a conflict in the CSMI and BTC’s gains indicates the lack of gains in the crypto market. The trend is potentially mirroring that of equities.

Focus on Ethereum ecosystem expected in Q3 2024

The third quarter of 2024 is expected to kick off the trading of Spot Ether ETF. It is based on the final approval of S-1 registration forms by the US SEC. If approved, when approved, it will bring all the attention to ETH. The SEC has already approved 19b-4 and is likely to give a nod of approval to the final form by July 04, 2024.

Approval of the ETF product will fuel interest in ETH and adoption of the digital asset. Depending on the size of the inflows, it will also support a higher valuation. Ethereum is below the $3,500 mark but could soon inch closer to $4,000. If the product is approved in early July, it may surpass that milestone.

AI-related tokens outperform crypto market

OCEAN, AGIX, and FET are some of the most well-known AI tokens. They have proven a strong resistance to volatility by marking significant upticks in their valuations. While FET is down at the moment, it dances on a higher stage before shedding some weight—so have OCEAN and AGIX.

AI tokens remain the talk of the town because Artificial Intelligence as a technology is picking pace all over the world, with giants like Microsoft and Google re-inventing every innovation that they have previously considered. The bullish trend is speculated to continue as the market takes up the task of reaching a common point between blockchain and AI.

Other key themes and projects to watch

For starters, decentralized GPU marketplaces like Render and Akash are seeking benefits from the growing adoption and influence of Artificial Intelligence. RNDR is up by 3.26% in the last 24 hours, and so is AKT, except the latter has gained more than 17% at the time the article is being drafted.

Solana network is leveraging the ecosystem’s organic growth. The team has worked to offer a user-friendly experience, and by the looks of it, efforts are paying off well. Even the token is up by 6.07% in a single day to exchange hands at $144.51 and test the resistance of $143.50. Toncoin and Pendle are two more projects to look out for. It might turn out to be worthy enough if members decide to monitor their performance.

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Some attention will be differentiated based on token supply inflation. Projects with high inflation may experience token value dilution even though user adoption upticks.

Introducing the Grayscale research top 20

Grayscale research top 20

Grayscale has, in the report, listed its top 20 digital assets for the third quarter of 2024. Bitcoin and Ethereum lead the charts, followed by Solana and Toncoin. Chainlink, Uniswap, and NEAR have also made an appearance. Akash has not been placed at the top due to its lower market cap, but it remains one of the preferred cryptocurrencies for Q3-2024.

Ankur Sachdev

Ankur Sachdev is driven by curiosity and extensively covers daily events in cryptocurrency and blockchain technology. You can also see him write about sports and Artificial Intelligence. As a content writer, he aims to simplify the complexities of the industry. Keeping him grounded is the ideology of learning like a student regularly.

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