Stablecoins, once dominant in crypto portfolios, have experienced a notable decline among both institutional and retail investors. According to Bybit’s Q2 Asset Allocation report, stablecoin holdings dropped from 50.2% in December to approximately 42.8% in May.
Bitcoin Remains Resilient
Despite this shift, Bitcoin continues to reign supreme. It constitutes a significant 26% of total assets held by users. When excluding stablecoins, Bitcoin and Ethereum together account for 61% of crypto investments.
Retail Traders Prefer Bitcoin
Retail traders mirror institutional preferences, favoring Bitcoin over Ethereum. Institutional positions in BTC and ETH are more concentrated, with holdings of 39.4% and 20.9%, respectively. The recent approval of Bitcoin Spot ETFs by the SEC has further solidified Bitcoin’s appeal for institutions.
Altcoin Fluctuations
Altcoin holdings have seen fluctuations. Initially dropping from 25% in January 2024 to 20.9%, they rebounded to 22.5% in May. Retail traders, particularly drawn to meme tokens and Bitcoin Layer 2 projects, display a stronger preference for altcoins.
stablecoins are losing ground, Bitcoin remains resilient, and altcoins continue to sway with market narratives.