Sygnum analysts predict altcoin growth in Q2

In their opinion, the rally will be aided by an improved regulatory environment

18.04.2025 - 14:00

3 min

What’s new? Analysts at the Swiss crypto bank Sygnum expect the altcoin sector to grow in Q2 2025 due to the clarification of the regulatory environment. In the report, they noted “drastically improved” regulation of cryptocurrency use cases, which sets the stage for an altcoin rally. That said, the positive changes have not yet been factored into prices.

The bank’s report

What else is known? In April, bitcoin’s share of total crypto market capitalization reached a four-year high, approaching 64%, indicating that investors are actively shifting funds to BTC as a safer cryptocurrency.

However, Sygnum said that regulatory changes in the United States, such as President Donald Trump’s creation of an altcoin fund in addition to the BTC reserve and the advancement in the passage of stablecoin laws, could encourage greater adoption of cryptocurrencies.

CoinGecko: In Q1, spot trading volume on leading CEXs fell by 16%

The total value locked of DeFi protocols also fell by more than 27%

“We expect protocols successful in gaining user traction to outperform and Bitcoin’s dominance to decline,” the analysts write.

This will lead to increased competition and, as a result, better products, which will benefit end users. Sygnum noted the market’s increased focus on economic value and highlighted projects such as Toncoin, Sui, Aptos, Sonic, and Berachain.

For example, Berachain rewards validators for providing liquidity to DeFi apps, Sonic app developers are rewarded for attracting and retaining users, and Toncoin benefits from an exclusive partnership with messenger Telegram, whose audience is approaching 1 billion users.

Telegram’s Wallet will offer a lucrative program for Toncoin holders

The update will gradually become available to users in March and April

The bank also noted the potential of Layer 2 (L2) networks. Among them, Base from the crypto exchange Coinbase, based on the Ethereum blockchain, stands out. It is the leader in terms of daily transaction volume, throughput, and total value locked (TVL)

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