In a significant development within the cryptocurrency landscape, Bybit, the second-largest exchange globally by trading volume, has unveiled its Q3 2025 Asset Allocation Report. The findings indicate a notable decline in stablecoin holdings as investors pivot towards more dynamic assets, particularly Solana (SOL) and XRP, along with other altcoins.
The report reveals that while Bitcoin (BTC) and Ether (ETH) continue to dominate portfolios, there is a discernible trend of institutions reallocating funds away from stablecoins to seek higher yields in the altcoin market. Currently, investors maintain a ratio of $1 in Bitcoin for every $3 in total holdings, with Ether holdings experiencing a 20% increase since the previous report. Notably, XRP has ascended to become the third-largest non-stablecoin cryptocurrency, highlighting its rising prominence.
Moreover, the concentration of BTC and ETH within non-stablecoin assets has seen a reduction from 58.8% in May 2025 to 55.7% in August 2025. This shift has been attributed primarily to heightened investment in altcoins. The movement of stablecoin resources has also led to a surge in Solana holdings, which have reached unprecedented levels this year, as investors anticipate similar treasury strategies applied to Bitcoin and Ether will also be viable for SOL.
Decentralized exchange (DEX) tokens have emerged as the primary beneficiaries from the decline in stablecoin allocations, alongside tokens associated with Layer 1 and Layer 2 protocols, as well as tangible asset-backed tokens. In contrast, meme tokens have shown negligible movement, while gold-backed tokens remain relatively underrepresented in the market.
The findings from Bybit’s report reflect an increasing appetite among investors for altcoins, signaling a broader strategy of diversification within the digital asset space. Institutions, in particular, appear to be reducing cash reserves significantly to leverage the prevailing market momentum. This trend underscores Bitcoin and Ether’s role as foundational elements of investment portfolios while also spotlighting the potential of SOL, XRP, and DEX tokens to offer attractive alternatives.
Bybit continues to serve a global user base exceeding 70 million, focusing on enhancing the infrastructure for blockchain innovation while bridging traditional finance and decentralized finance.
