Sygnum Forecasts Altcoin Revival in Q2 2025 Amid Regulatory Tailwinds and Protocol Innovation

Swiss-based bank Sygnum has forecasted a potential altcoin resurgence in the second quarter of 2025, supported by significant progress in global digital asset regulation. The projection was detailed in a report released Thursday (April 17, 2025).

Sygnum highlighted that regulatory developments—particularly the real-world application of crypto technologies—have laid a strong foundation for an upcoming altcoin rally. However, the firm noted that current market prices have yet to reflect this optimism.

In April, Bitcoin’s dominance over total crypto market capitalization reached its highest level in four years, indicating a shift in investor preference toward perceived safe-haven assets amid ongoing economic uncertainty.

Still, Sygnum sees expanding crypto adoption on the horizon, especially in the U.S. Notable steps such as President Donald Trump’s establishment of a Digital Asset Stockpile and regulatory progress surrounding stablecoins are expected to boost industry growth.

The report also stated that protocols successfully onboarding users will likely outperform peers, while Bitcoin’s dominance is expected to wane over time.

Rising Crypto Competition Shifts Focus to Economic Value Creation

Beyond regulatory momentum, Sygnum also emphasized the intensifying competition within the crypto space, as the industry moves toward sustainable value creation. The current focus is shifting from hype-driven metrics to user engagement, product utility, and consistent revenue generation.

Promising protocols such as Toncoin, Sui, Aptos, Sonic, and Berachain are gaining attention, each bringing unique strategies to attract users and increase ecosystem revenues.

Although emerging blockchains are attempting to address the limitations of major networks like Bitcoin, Ethereum, and Solana, adoption and monetization remain key hurdles.

Layer-2 networks, particularly Base, were also spotlighted in the report. Despite experiencing a surge in activity fueled by meme coin hype, declining interest in the trend has led to a notable drop in Base’s performance metrics. Nevertheless, Base continues to lead in terms of daily transaction volume, network throughput, and Total Value Locked (TVL).