The cryptocurrency investment landscape is undergoing a quiet transformation, and a recent report from Bybit offers a revealing snapshot of shifting investor behavior in the first half of 2025. Based on data collected between October 2024 and May 2025, the analysis highlights how digital asset holders are rebalancing their portfolios — with Bitcoin solidifying its position as the cornerstone of crypto investing, Ethereum showing signs of recovery, and XRP emerging as a surprising third-place contender.
This evolving allocation pattern reflects broader market sentiment, regulatory expectations, and the growing maturity of long-term investment strategies in the digital asset space.
Bitcoin Reinforces Its Core Role in Crypto Portfolios
As of May 2025, Bitcoin (BTC) accounts for 30.95% of total non-stablecoin holdings across investor portfolios — effectively meaning one out of every three crypto assets held is Bitcoin. This marks a significant increase from 25.4% in November 2024, underscoring BTC’s growing dominance amid market uncertainty and macroeconomic volatility.
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Bitcoin's appeal continues to stem from its perceived status as "digital gold" — a decentralized store of value resistant to inflation and geopolitical risks. With increasing institutional adoption and growing clarity around regulatory frameworks, many investors are turning to BTC as a foundational asset, similar to how gold functions in traditional finance.
The ETH/BTC holding ratio now stands at 0.27, indicating that for every $1 invested in Ethereum, investors hold approximately $4 in Bitcoin. This suggests a clear preference for Bitcoin as the primary long-term holding, with Ethereum playing a complementary but secondary role.
Ethereum Shows Signs of Recovery Amid Market Shifts
While Bitcoin leads the pack, Ethereum (ETH) remains a critical pillar of the crypto ecosystem. The report highlights a notable recovery in ETH’s portfolio share, rebounding from a low of 3.89% in April 2025 to stronger levels by May — although it has yet to reclaim its November 2024 peak of 11.12%.
This resurgence aligns with renewed optimism around Ethereum’s post-upgrade performance, including improvements in scalability, reduced transaction fees, and increased activity across decentralized applications (dApps) and Layer-2 solutions. Developers and institutional players continue to build on the Ethereum network, reinforcing its utility beyond mere speculation.
Despite facing increased competition from alternative smart contract platforms, Ethereum’s robust developer community and first-mover advantage in DeFi and NFTs keep it firmly entrenched in investor portfolios.
XRP Surges to Third Place on ETF Hopes
One of the most striking developments in the report is XRP overtaking Solana (SOL) to become the third-largest non-stablecoin asset in investor holdings. By May 2025, XRP’s share had doubled from 1.29% in November 2024 to 2.42%, fueled largely by growing anticipation around a potential XRP spot ETF approval by the U.S. Securities and Exchange Commission (SEC).
Market analysts attribute this surge to increasing institutional interest and retail confidence following favorable court rulings and clearer regulatory signaling. Unlike previous rallies driven by speculation alone, this momentum appears more sustainable, supported by tangible progress in Ripple’s legal battles and expanding use cases for XRP in cross-border payments.
Investors appear to be pricing in a higher probability of regulatory clarity, making XRP an attractive asymmetric bet — offering high upside with limited downside risk if an ETF is approved.
Solana Faces Investor Pullback Despite Past Momentum
In contrast to XRP’s rise, Solana (SOL) has seen a notable decline in portfolio allocations. Holdings dropped by 35%, falling from 2.72% in November 2024 to just 1.76% by May 2025. This pullback comes despite Solana’s strong performance in Q3 2024, when network activity and developer engagement reached all-time highs.
Possible factors behind this shift include concerns over network outages, centralization debates, and increased competition from other high-performance blockchains. Additionally, some capital may have rotated into assets with clearer regulatory paths or stronger institutional backing.
While Solana remains a technically capable platform with vibrant ecosystem projects, investor sentiment appears cautious — at least in the short term.
Key Crypto Investment Trends Shaping 2025
The Bybit report underscores several broader trends shaping crypto investment behavior:
- Consolidation around core assets: Investors are increasingly favoring established projects with strong fundamentals, clear use cases, and regulatory resilience.
- Regulatory catalysts drive allocations: Assets like XRP benefit significantly from positive regulatory developments, highlighting how policy impacts market dynamics.
- Portfolio diversification remains limited: Despite thousands of available cryptocurrencies, the vast majority of value remains concentrated in a handful of top-tier assets.
- Stablecoins play a stabilizing role: Though not included in non-stablecoin analysis, stablecoins continue to serve as safe havens during volatility.
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Frequently Asked Questions
Q: Why is Bitcoin taking up such a large portion of crypto portfolios?
A: Bitcoin is widely viewed as the most secure and decentralized digital asset. Its fixed supply, global recognition, and increasing acceptance as a reserve asset make it a preferred choice for long-term wealth preservation.
Q: What caused XRP to surpass Solana in portfolio rankings?
A: The primary driver was growing optimism around a potential XRP spot ETF. Favorable legal developments and clearer regulatory positioning have boosted investor confidence compared to Solana’s technical and reputational challenges.
Q: Is Ethereum losing relevance in the crypto market?
A: No. While its portfolio share dipped temporarily, Ethereum remains the leading platform for decentralized finance and smart contracts. Its recent upgrades have improved efficiency, and it continues to attract significant developer and institutional interest.
Q: Should I follow the same allocation trends seen in the report?
A: While these trends reflect broad market behavior, individual strategies should consider personal risk tolerance, investment goals, and research. Diversification and due diligence remain essential.
Q: How reliable is this data?
A: The data comes from Bybit, one of the largest crypto exchanges by trading volume, covering millions of users globally. While it reflects on-exchange behavior, it provides valuable insights into real-world investment patterns.
Q: Are stablecoins included in these portfolio percentages?
A: No — the report focuses specifically on non-stablecoin cryptocurrency holdings. Stablecoins like USDT and USDC are typically held separately for liquidity or hedging purposes.
The Road Ahead for Crypto Asset Allocation
As the crypto market matures, investor behavior is becoming more strategic and informed. The shift toward core assets like Bitcoin and Ethereum — while selectively embracing emerging opportunities like XRP — reflects a growing emphasis on sustainability, utility, and regulatory clarity.
For new and experienced investors alike, understanding these allocation trends can provide valuable context when building or adjusting digital asset portfolios.
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Whether you're focused on long-term holds or active trading, staying aligned with macro trends while conducting independent research is key to navigating the dynamic world of digital assets.
Core Keywords: Bitcoin, Ethereum, XRP, crypto portfolios, asset allocation, cryptocurrency investment, Solana