Grayscale ranks the top 20 tokens with the best returns in Q3

Grayscale has announced an index showing that altcoins have delivered the best returns in the third quarter of 2025. The underperformance of Bitcoin has become the most prominent feature of this quarter, while BNB Chain, Prometheus, and Avalanche are leading the rankings for the best risk-adjusted performance.

This index is primarily driven by tokens used for financial applications and smart contract platforms. The thematic stories revolve around the adoption of stablecoins, trading volumes, and the digital asset fund (DAT), which has played an important role in driving this superiority.

Altcoin leading the performance in Q3

Q3 2025 has proven to be a strong period in the digital asset market. According to an index developed by Grayscale Research, some prominent tokens have generated the best returns when adjusted for volatility.

In the ranking of the top 20 performing tokens, BNB Chain is leading, providing the most favorable returns with relative stability compared to tokens that have experienced increases influenced by excessive risk.

Following BNB Chain are Prometeus, Avalanche, Cronos, Beldex, and Ethereum.

Top 20 best-performing tokens | Source: Grayscale ResearchGrayscale has segmented the digital asset market into six segments based on the core functions and use cases of the protocols: Currency, Smart Contract Platforms, Finance, Consumer and Culture, Utility and Services, and Artificial Intelligence.

The seven best-performing tokens belong to the Finance sector, while five tokens come from the Smart Contract Platform. These results indicate a clear shift away from the Currency sector, most notably the absence of Bitcoin from this list.

Why Bitcoin is Lagging Behind

The most important data point from Grayscale's research is not who is on the list but who is not: Bitcoin.

Although all six sectors generate positive returns, the Currency segment underperforms, reflecting the modest price increase of Bitcoin compared to other segments. When measuring performance on a risk-adjusted basis, Bitcoin does not present an attractive profile.

Performance of the cryptocurrency sector in Q3 2025 | Source: Grayscale ResearchThe assets on the list are primarily driven by new utility-related themes and regulatory clarity. These narratives particularly focus on the adoption of stablecoins, trading volumes, and DAT.

According to Grayscale Research, the increase in trading volume on centralized exchanges has benefited tokens such as BNB and CRO. At the same time, the rise of DAT and the widespread adoption of stablecoins have driven demand for platforms such as Ethereum, Solana, and Avalanche.

The specific categories of decentralized finance (DeFi) also demonstrate strength, such as decentralized perpetual futures exchanges like Hyperliquid and Drift, which have contributed to the robust development of the finance sector.

Bitcoin is less affected by these specific stimulus factors, serving as a peer-to-peer cryptocurrency and a store of value. This lack of exposure has allowed altcoins linked to functional platforms and financial services to increase their risk-adjusted performance.

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