Sygnum Sees Altcoin Revival Driven by Regulation and Engagement

Swiss bank Sygnum predicts a positive shift for the altcoin market in the second quarter of 2025, citing improved digital asset regulation and increased user adoption as key drivers. Although Bitcoin saw its market dominance hit a four-year high in April, Sygnum suggests regulatory advancements like US President Trump’s proposals for digital asset reserves and progress in stablecoin regulations could fuel broader cryptocurrency acceptance. Sygnum predicts that the most successful protocols, those engaging their users effectively, will outperform the broader market, potentially reducing Bitcoin’s dominance. This increased competition has spurred better product development, ultimately benefiting consumers. The report notes that while high-performance blockchains like Ethereum and Solana offer improvements over Bitcoin’s limitations, they still face challenges in achieving widespread adoption and generating revenue.