Quick Breakdown:
- Stablecoin share dropped to 25% in August 2025, fueling altcoin gains.
- Bitcoin holds 31.7% of portfolios, Ether climbs 20% since May.
- Solana, XRP, and DEX tokens saw the largest capital inflows.
Stablecoin reserves in crypto portfolios fell sharply in the third quarter of 2025, with investors reallocating funds to Solana (SOL), XRP and a range of altcoins, according to Bybit’s latest Asset Allocation Report.
Bitcoin remains the largest holding among users, accounting for 31.7% of total assets as of August, slightly up from 31.0% in May. Ether also gained ground, with its share rising 20% from 8.4% in May to 10.1% in August.
Stablecoin share falls to 25%
The most significant move in Q3 was the steep decline in stablecoin holdings. After standing at 42.7% in April and 35.4% in June, reserves dropped to just 25% in August — the lowest level this year. The majority of these funds were funnelled into altcoins rather than Bitcoin or Ether, which collectively captured only 4% of the reallocation.
Institutional investors cut their stablecoin exposure the most, reducing cash positions to 17.2% of portfolios in August, compared with 55.7% among retail traders. The report suggests institutions are becoming more aggressive in chasing returns, in contrast to the cautious stance of retail participants.
Altcoins lead the gains
Solana recorded its highest portfolio share of 2025 as investors increasingly treat SOL like a treasury asset. XRP also climbed, solidifying its position as the third-largest non-stablecoin asset after BTC and ETH.
Other categories benefited as well. Decentralized exchange (DEX) tokens posted the strongest growth, with holdings quadrupling from 0.4% in June to 1.8% in August, largely driven by institutional inflows. Layer 2 tokens followed, nearly tripling from 0.8% to 2.1% over the same period. Real-world asset (RWA) tokens also saw gains, while meme coins barely moved, and gold-backed tokens remained a marginal play.
In addition to this development, Bybit released its latest decentralized finance (DeFi) report, revealing that real-world assets (RWA) and decentralized exchanges (DEXs) are now driving the next wave of growth in DeFi.
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