Institutional investors are increasingly reallocating their capital from Bitcoin and Ethereum to a wider array of digital assets, according to Eurotrader's analysis. This strategic shift is driven by market stagnation, regulatory uncertainties, and the appeal of alternative projects with potentially better risk-reward profiles. As institutions seek to enhance portfolio resilience, they are adopting diversified strategies that incorporate traditional analytical frameworks. This has resulted in heightened interest in Layer 2 networks, tokenized real-world assets, and AI-focused blockchains. Meanwhile, stablecoins continue to be favored for their reduced volatility, offering a stable component within these diversified portfolios.