XRP, Altcoins Benefit as Investors Shift Stablecoin Holdings: Q3 2025 Bybit Report

As the bull cycle progresses, investors are increasingly adopting other cryptocurrencies besides bitcoin (BTC). Market dynamics signal that traders are now embracing top altcoins, including Ripple (XRP), Solana (SOL), and decentralized exchange (DEX) tokens.

An asset allocation report by the crypto exchange Bybit revealed that stablecoin holdings have fallen in this quarter. This is because investors have been redeploying their funds to XRP, SOL, and other altcoins.

Investors Dump Stablecoins For Altcoins

According to Bybit, the stablecoin holding percentage of crypto investors dropped from 42.7% in April and 35.42% in June to just 25% in August. This 20% decline has mostly benefited altcoins, with only a little of the holdings (4%) allocated to BTC and ether (ETH).

The crypto exchange noted that institutions have been cutting their stablecoin holding percentage more than retail traders in Q3 2025. With more return-sensitive strategies, these crypto-friendly entities have slashed their stablecoin holdings to 17.2%, while retail traders hold roughly 55.7%.

Bitcoin was the largest single asset held by all crypto users in August. The coin accounted for 31.7% of investors’ total assets, an uptick from 28.4% in January. However, the holding percentage for BTC has remained relatively stable since May, when it accounted for 31% of assets.

ETH, on the other hand, successfully recovered with a 20% increase in its holding percentage since Bybit’s last asset allocation report in the second quarter of this year. The figure rose from 8.4% in May to 10.1% in August. Bybit attributed this growth to investors deploying stablecoin reserves in their wallets, instead of reallocating from other major tokens.

DEX Tokens Emerge as Highest Beneficiaries

Although Solana holdings have surged to their highest levels this year and XRP is now the third-largest non-stablecoin crypto asset, they have not benefited the most from investors redeploying their stablecoin allocations.

DEX tokens are the largest beneficiaries, increasing by 4x from 0.4% in June to 1.8% in August. This growth is linked to institutions deploying huge capital into this sector and increasing their holding percentage by 7x within the same time frame.

Layer-2 assets followed suit, with their holding percentage increasing almost threefold from 0.8% in June to 2.1% in August. Real World Assets (RWA) also experienced a significant impact, while meme coins and gold tokens remained largely unchanged.