The Big Bank Expects a Rally in Altcoins: Flight May Begin from This Date! - Coin Bulletin

Swiss bank Sygnum stated that improvements in cryptocurrency regulations could revitalize the altcoin market in the second quarter of 2025.

Despite the recent fluctuations in the cryptocurrency market, the Switzerland-based bank Sygnum highlighted in its Q2 2025 investment outlook report that a new bull market in the altcoin market could begin. According to the report, the “dramatic improvements” in regulations related to cryptocurrencies have laid the groundwork for a strong rise in altcoins. However, the bank emphasized that these positive developments have not yet been reflected in prices.

The report also indicated that Bitcoin’s market dominance reached its highest level in four years in April, with investors moving towards BTC, which they consider safer as they avoid risk. However, it was stated that regulatory developments in the US, particularly the “Digital Asset Inventory” created by President Donald Trump and stablecoin regulations, would accelerate overall cryptocurrency adoption.

(# New projects are in the foreground

According to Sygnum, protocols that manage to attract users may perform better than BTC in the future, which could lead to a decline in Bitcoin dominance. The bank also mentioned that rising new protocols such as Toncoin, Sui, Aptos, Sonic, and Berachain are focusing on creating economic value by adopting different approaches.

The report emphasized that high-performance blockchains aim to transcend the boundaries of major networks such as Bitcoin, Ethereum, and Solana, yet struggle with meaningful user adoption and generating fee revenue. As more sustainable models, it highlighted Berachain incentivizing validators for providing liquidity in DeFi applications, Sonic rewarding developers for attracting users, and Toncoin reaching 1 billion users through Telegram.

Additionally, Sygnum pointed to the potential of second layer )layer-2### solutions like Base. The bank noted that during the meme coin frenzy, Base’s user count and trading volume peaked, but these figures rapidly declined with the loss of popularity in meme coins. However, it stated that Base still holds a leading position in metrics such as daily transaction count and total locked value (TVL).

On the other hand, according to CoinGecko’s latest report, meme coins ranked second with 27.1% in global investor interest in the first quarter. AI-focused tokens, on the other hand, became the most popular category with 35.7%. According to a report by Bitwise, which indicates that institutions are following a different strategy, public companies’ Bitcoin investments reached 57 billion dollars in the first quarter.