Shift in Stablecoin Investments Favoring XRP and Altcoins: Q3 2025 Bybit Report Highlights This Trend
In the dynamic world of cryptocurrencies, August saw a significant shift in the market landscape. The third-largest non-stablecoin crypto asset, Ripple (XRP), has gained ground, although the specific percentage increase was not disclosed.
Leading the pack remained Bitcoin, which accounted for 31.7% of investors' total assets in August. This figure represents an increase compared to January, where Bitcoin held 28.4% of the total assets.
Meanwhile, the crypto market has witnessed a decline in stablecoin holdings. Bybit's asset allocation report indicates a 20% decrease in stablecoin holdings by investors from August compared to June. This trend has primarily benefited altcoins such as Ripple (XRP), Solana (SOL), and decentralized exchange (DEX) tokens.
The decline in stablecoin holdings has been particularly noticeable in the case of DEX tokens. They experienced a 4x increase in holding percentage from June to August, reaching 1.8%. Institutions have also significantly increased their holding percentage in DEX tokens by 7x within the same time frame.
This period is being referred to as an 'altcoin season' due to the surge in DEX tokens and other altcoins. Layer-2 assets also saw an almost threefold increase in their holding percentage from June to August.
The shift away from stablecoins has been driven by investors redeploying their funds towards altcoins. The crypto exchange Bybit noted this trend, suggesting that investors are seeking opportunities beyond stablecoins.
In contrast, retail traders hold a larger percentage of their assets in Bitcoin compared to institutions in August (55.7% vs 17.2%). However, it's worth noting that only 4% of the holdings were allocated to both Bitcoin and Ether.
One notable exception to the trend of declining stablecoin holdings is CEA Industries, which executed the largest change in stablecoin holdings by accumulating 388,888 BNB tokens worth approximately $330 million. This move aimed to own 1% of BNB's total supply and significantly increased their exposure to Layer-1 blockchain infrastructure assets like BNB, potentially shifting focus away from stablecoins towards core blockchain tokens.
Real World Assets (RWA) also experienced a significant impact, although the specific percentage increase was not specified.
As the crypto market continues to evolve, it will be interesting to see how these trends develop and whether the altcoin season will continue.
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