Investors Shift from Stablecoins to Altcoins in 2025
Investors Embrace Shift in Asset Allocation
Bybit, recognized as the world's second-largest cryptocurrency exchange by trading volume, has recently released its Q3 2025 Asset Allocation Report, unveiling interesting trends among digital asset investors. The report points to a significant drop in stablecoin holdings as more investors are opting to invest in Solana (SOL), XRP, and various altcoins. While Bitcoin and Ether continue to hold substantial positions in many portfolios, the survey reveals that institutions are increasingly moving away from stablecoins, redirecting funds into higher-yield digital assets.
Report Highlights
This report provides several key insights into current investment strategies within the crypto market. Firstly, investors maintain a robust position in Bitcoin, holding about $1 for every $3 they invest overall. Notably, Ether holdings have surged by 20% since the previous report, and XRP has solidified its status as the third-largest non-stablecoin crypto asset.
- The concentration of Bitcoin (BTC) and Ether (ETH) has decreased from 58.8% of non-stablecoin tokens in recent months to 55.7%. This shift is largely thanks to increased allocations toward other altcoins.
- There has been a marked reallocation of stablecoins toward SOL, XRP, and an array of altcoins during this quarter.
- Many investors have heightened their Solana holdings, which are approaching record levels this year, with expectations that treasury strategies previously used for BTC and ETH will be adopted for SOL as well.
- The decentralized exchange (DEX) tokens have benefited most from the decline in stablecoin values, accompanied by gains in Layer 1, Layer 2, and real-world asset tokens. Conversely, meme tokens have seen little movement, and gold tokens are still in a minority position.
Investor Sentiment on Altcoins
The findings illustrate a growing eagerness among investors to diversify into altcoins, as stablecoin reserves shift towards more dynamic, higher-growth investments. Institutions, particularly, are making tactical reductions in cash holdings to harness the upward momentum of the market. Bitcoin and Ether remain crucial anchors for portfolio stability, but the rise of SOL and XRP, along with DEX tokens, signals an evolving landscape where diversification is becoming more prevalent within the digital asset market.
About Bybit
Founded in 2018, Bybit stands out as a leader in the cryptocurrency space, boasting a community of over 70 million users globally. The exchange is committed to fostering openness in the decentralized world, establishing a welcoming ecosystem for everyone. With an emphasis on Web3 initiatives, Bybit collaborates with leading blockchain protocols to develop infrastructure that spurs on-chain innovation. Acknowledged for its secure custody services, varied marketplaces, and intuitive user experience, Bybit is bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi), empowering creators and enthusiasts to explore the full potential of Web3.
Frequently Asked Questions
What does the Q3 2025 Asset Allocation Report cover?
The report highlights shifts in asset allocations among investors, particularly a decline in stablecoin investments towards altcoins like SOL and XRP.
Why are investors moving away from stablecoins?
Investors are reallocating funds to seek higher yield assets and diversify their portfolios, motivated by institutional trends and market momentum.
What percentage of holdings is in Bitcoin and Ether?
Investors currently hold approximately $1 in Bitcoin for every $3 overall, with Ether allocations also seeing a significant increase.
How have altcoins performed?
Altcoins like Solana and XRP have gained attention and investment as stablecoin reserves have shifted, indicating robust interest and growth potential.
How does Bybit support its users?
Bybit provides a secure trading platform with a focus on user experience and offers various blockchain tools, enhancing the trading experience for investors.
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