Altcoins Could Rebound in Q2 as Regulation Boosts Market Confidence, Sygnum Says

Swiss bank Sygnum sees brighter prospects ahead for altcoins, citing a wave of regulatory improvements that could set the stage for a market rebound in the second quarter of 2025.

According to its latest investment outlook, while the regulatory environment has seen major upgrades, these changes haven’t yet been priced into the market.

Bitcoin has recently pulled ahead, reaching its highest market dominance in four years, as investors moved toward perceived stability. But Sygnum believes that advantage may fade as policy support—including the U.S.’s new digital asset reserve and ongoing stablecoin legislation—accelerates adoption across the crypto space.

Projects delivering real user value are expected to lead the way. Newer protocols like Toncoin, Sui, Aptos, Sonic, and Berachain are all taking different approaches to attract users—some rewarding developers or liquidity providers, others leveraging platforms like Telegram for distribution. Still, meaningful adoption and revenue generation remain challenging for many high-speed chains.

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Ethereum’s layer-2 networks are also showing strength. Base saw a spike in activity during the recent memecoin boom and, despite a cooldown, still leads in metrics like transaction volume and total value locked.

Memecoins remained one of the most talked-about sectors in Q1 2025, accounting for over 27% of investor interest globally—second only to AI tokens, according to CoinGecko. While retail traders continue to chase meme-fueled trends, institutional players are moving in a different direction.

Asset manager Bitwise revealed that twelve public companies bought Bitcoin for the first time last quarter, bringing corporate holdings to $57 billion—a sign that serious capital still sees Bitcoin as the cornerstone of the digital asset space.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.