Altcoins can discover a revival within the second quarter of 2025, since based on Swiss Bank Sygnum, the regulations for digital assets are further improve.
In his investment outlook in Q2 2025, Sygnum said that the room for crypto applications had “drastically improved” and created the fundamentals for a powerful old sector rally for the second quarter. However, it added that “not one of the positive developments were evaluated.”
In April the Bitcoin dominance reached a four-year high and signaled that crypto investors transform their funds into an asset that’s perceived as relatively protected.
However, Sygnum said that regulatory developments within the United States, as President Donald Trump's foundation of a digital asset and the regulations for Stablecoin, could drive a broader crypto adoption.
“We assume that protocols which can be successful to exceed the user traction and the dominance of Bitcoin to the decline,” wrote Sygnum.
The increased give attention to economic value inflames the competition
Sygnum also said that the competition would increase if the market focused on economic value. The increased competition in a market often leads to higher products and ultimately advantages consumers:
“The increasing focus of the market on the economic value forces higher competition for growth and income of users, with increasing protocols comparable to Toncoin, SUI, aptos, Sonic or Berachain pursuing different approaches.”
Sygnum added that high-performance blockchains approach the restrictions of the blockchains of Bitcoin, Ethereum and Solana, but it surely is difficult to attain meaningful adoption and fee income.
Sector creation after market capitalization. Source: Sygnum
The report emphasized that some approaches were more sustainable. This includes Berachain's approach, validators for the availability of liquidity for decentralized financing applications (DEFI), to draw and maintain the rewarding developers of Sonic, the users, in addition to the telegram membership from Toncoin to 1 billion users.
In addition to the layer 1 chains, Sygnum emphasized that Layer-2 networks comparable to the idea are also potentially. The report identified that the Memecoin madness on the blockchain brought its users and revenue to latest heights, but just as much decline after Memecoins had began to lose steam.
Nevertheless, Sygnum found that the idea of the Layer 2 leaders in metrics comparable to day by day transactions, throughput and total value stays closed.
Memecoins still a number one crypto counting in Q1
Despite the recent drop in price, Memecoins remained a dominant crypto narrative in the primary quarter of 2025. In a Coingecko report, it was recently stated that memoins remained dominant as a crypto narrative in the primary quarter of 2025. The crypto data society stated that Memecoins 27.1% of world investor interest, the second only artificial intelligence, were artificial intelligence that had 35.7%.
While retail investors are still busy with Memecoins, institutions have a unique approach. On April 14, asset manager Bitwise reported that publicly traded firms are stacked by Bitcoin. Bitcoin bought at the very least 12 public firms for the primary time in the primary quarter of 2025 and increased the Holdings of the general public company to $ 57 billion.
