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.
Related: XRPL Debate Highlights XRP’s Future Role Alongside Stablecoins in Payments and DeFi
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.
Also, 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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