Investors Slash Stablecoin Holdings: Bybit Reveals Where the Cash Flowed in Q3
Bybit’s Q3 2025 Asset Allocation Report reveals a decisive investor shift away from stablecoins and into Solana (SOL), XRP, and a variety of altcoins.
The transfer factors to rising threat urge for food as establishments slash money ranges in favor of higher-yielding property whereas Bitcoin and Ethereum stay portfolio anchors.
Stablecoin Holdings Collapse as Solana and XRP Climb the Ranks
Bybit knowledge exhibits that stablecoin holdings dropped from 42.7% in April to simply 25% in August, a steep decline of over 20% in 4 months.
Institutions have been the most aggressive in reallocating. Stablecoins accounted for less than 17.2% of institutional portfolios, in comparison with 55.7% amongst retail merchants.
“Institutions are clearly positioning to seize momentum,” the report noted.
Further, the decline in money ranges aligns with each treasury strategies applied to Bitcoin and Ethereum and whale accumulation in spot ETFs.
Of the reallocated capital, solely 4% went into BTC and ETH. The overwhelming majority was directed towards altcoins, with Solana, XRP, and decentralized exchange (DEX) tokens amongst the largest winners.
According to the report, Solana holdings reached their highest stage in 2025. The surge got here as traders anticipated that treasury methods and institutional frameworks utilized to BTC and ETH would extend to SOL.
For instance, Forward Industries, a Nasdaq-listed manufacturing firm, raised $1.65 billion for the Solana treasury push. Others embrace Sharps Technology, with the record prone to develop.
Gurufin’s evaluation, shared solely with BeInCrypto, helps clarify this pattern.
With tokenization demand projected to hit $30 trillion by 2034, the agency argues that Solana and different high-throughput chains might seize outsized flows, notably for real-world assets denominated in local currencies.
This follows Solana’s growing footprint in both ETF eligibility and derivatives markets, which have seen report buying and selling volumes.
Meanwhile, XRP emerged as the third-largest non-stablecoin asset held on Bybit, trailing solely Bitcoin and Ethereum.
Its institutional profile has strengthened this 12 months, because of futures and options launches on the CME and inclusion in Grayscale’s newly authorised Digital Large Cap Fund (GDLC).
Meanwhile, specialists see XRP’s traction as a part of a broader push towards non-USD settlement rails, notably in Asia-Pacific economies trying to diversify monetary infrastructure.
Bybit knowledge suggests traders are diversifying into XRP as a part of broader altcoin allocations.
BTC and ETH Concentration Dips as Small Market-Cap Altcoins See Big Gains
Bitcoin stays the largest holding on Bybit, making up 31.7% of complete property in August, barely modified from May.
Ethereum, nonetheless, staged a notable comeback. Its share of holdings jumped 20% quarter-on-quarter (QoQ), rising from 8.4% in May to 10.1% in August.
Still, general focus in BTC and ETH fell from 58.8% of non-stablecoin tokens in May to 55.7% in August, reflecting a tilt towards altcoins.
Gurufin’s analysis provides international context. Asian regulators are laying the groundwork for native stablecoins that might underpin RWA tokenization.
“The pace and effectiveness with which APAC international locations launch and regulate their very own stablecoins will probably be essential in shaping a decentralized digital future,” the report said.
The reallocation pattern benefited a number of classes past the prime Layer-1 (L1) blockchain tokens.
DEX tokens noticed their holding proportion quadruple, from 0.4% in June to 1.8% in August, making them the strongest Q3 performer of Q3.
Institutional traders have been the major drivers, rising their publicity by 7x in simply two months.
Layer-2 (L2) tokens practically tripled their share, from 0.8% in June to 2.1% in August, whereas (RWA)-backed tokens additionally gained traction.
In distinction, meme tokens confirmed little motion, and tokenized gold remained marginal regardless of report highs in conventional markets.
Taken collectively, Bybit’s Q3 report highlights a maturing allocation technique. While Bitcoin and Ethereum stay anchors, establishments lower money reserves to diversify into higher-growth property.
The rise of Solana, XRP, and DEX tokens displays each confidence in the depth of the altcoin market and anticipation of regulatory inexperienced lights for ETFs and derivatives.
If stablecoin reserves stay beneath stress, This fall might see even stronger capital rotation into altcoins.
The publish Investors Slash Stablecoin Holdings: Bybit Reveals Where the Cash Flowed in Q3 appeared first on BeInCrypto.
