KEY TAKEAWAYS
- Bybit’s Q3 2025 report shows a significant shift from stablecoins to altcoins like Solana and XRP.
- Institutional investors are diversifying portfolios, reducing Bitcoin and Ether concentration to invest in higher-yield assets.
- Solana holdings have surged, reflecting broader diversification strategies in the digital asset market.
Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has released its Q3 2025 Asset Allocation Report. The report reveals a significant decline in stablecoin holdings as investors reallocate funds to Solana (SOL), XRP, and other altcoins. This shift is primarily driven by institutions seeking higher-yield digital assets.
While Bitcoin and Ether continue to dominate cryptocurrency portfolios, the report highlights a notable trend of diversification. Investors now hold $1 in Bitcoin for every $3 overall, and Ether holdings have increased by 20% since the last report. XRP has emerged as the third-largest non-stablecoin crypto asset.
Institutional Shift Towards Altcoins
The concentration of Bitcoin and Ether has decreased from 58.8% of non-stablecoin tokens in May 2025 to 55.7% in August 2025. This reduction is largely due to a higher allocation to altcoins. Stablecoins were significantly reallocated to SOL, XRP, and other altcoins during Q3 2025.
Solana holdings have reached their highest level this year, as investors anticipate that treasury strategies applied to Bitcoin and Ether will extend to SOL. Decentralized exchange (DEX) tokens have been the largest beneficiaries of the declining stablecoin levels, followed by Layer 1, Layer 2, and real-world asset tokens. In contrast, meme tokens have shown little movement, and gold tokens remain a minority in portfolios.
Broader Diversification Strategies
The Q3 2025 report underscores investors’ growing appetite for altcoins as stablecoin reserves are redeployed into higher-growth assets. Institutions, in particular, have significantly reduced cash holdings to capitalize on market momentum, while Bitcoin and Ether remain key anchors in portfolios.
The rise of SOL, XRP, and DEX tokens highlights broader diversification strategies across the digital asset market. This trend reflects a strategic shift as investors seek to balance risk and reward in the evolving cryptocurrency landscape.
For more detailed insights, the full report can be accessed here.
Why This Matters: Impact, Industry Trends & Expert Insights
The Bybit Q3 2025 Asset Allocation Report highlights a significant shift from stablecoins to altcoins such as Solana (SOL) and XRP, driven by institutional investors seeking higher yields.
A Token Metrics report underscores a major industry trend where institutional investment is increasingly focused on altcoins with strong fundamentals, like Ethereum, Solana, and XRP. This aligns with the Bybit report’s findings of reduced stablecoin holdings in favor of altcoins, reflecting a strategic shift in institutional portfolios.
As per insights from PR Newswire, the reallocation of stablecoins is driven by institutional adoption and regulatory clarity, with stablecoin market capitalization projected to reach $3 trillion in the next five years. This supports the Bybit report’s observation of investors reallocating stablecoin reserves into higher-growth assets like SOL and XRP.
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