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According to Swiss Bank Sygnum, Altcoins may see a resurgence in the second quarter of 2025 as digital assets regulations continue to improve.
In its investment outlook for the second quarter 2025, Sygnum said the space was seeing “dramatically improved” regulations for crypto use cases, creating the basis for a strong ALT sector rally for the second quarter. However, he added, “None of the positive developments or none of the prices.”
Bitcoin’s domination reached its four-year high in April, indicating crypto investors are spinning their funds into assets that are perceived as relatively secure.
Still, Sygnum said that the development of regulations in the US, including President Donald Trump’s establishment of digital assets stockpiles and absurd regulatory advances, could drive the adoption of broader cryptography.
“We expect the protocol to have achieved and outperform user traction and to diminish Bitcoin’s dominance,” writes Sygnum.
An increasing focus on economic value ignites competition
Sygnum also said competition will increase as the market focuses on economic value. Intensifying competition in the market often results in improved products and ultimately benefiting consumers.
“As the market’s increased focus on economic value, protocols like Toncoin, SUI, Aptos, Sonic and Belachiin take a variety of approaches, will intensify competition for user growth and revenue.”
Sygnum added that while high-performance blockchains are addressing restrictions on Bitcoin, Ethereum and Solana blockchains, they find it difficult to achieve meaningful adoption and fee revenue.
The report highlighted that several approaches have become more sustainable. These include the approach of encouraging validators to provide liquidity to Valicaine’s Decentralized Financial (DEFI) applications, Sonic’s rewarding developers who attract and maintain users, and Toncoin’s telegram affiliation with access to 1 billion users.
Aside from the Layer-1 chain, Sygnum highlighted that there are possibilities for Layer 2 networks like the Base. The report noted that Memocoin frenzy on the blockchain pushed users and revenues to new highs, but similarly led to a sharp decline after Memecoin began to lose steam.
Nevertheless, Sygnum pointed out that the base remains a Layer-2 leader for metrics such as daily transactions, throughput, and locked total values of total values.
Related: Italian Finance Minister warns that stablecoins pose a greater threat than tariffs
MemeCoins is the main cryptography story of Q1
Despite recent price drops, Memecoins remained the dominant code story in the first quarter of 2025. Recently, Coingecko’s report highlighted that Memecoins remained dominant as a cryptography narrative in the first quarter of 2025.
Retail investors are still busy with Memecoin, but institutions have a different approach. Asset Manager reported Bitwise on April 14th. At least 12 public companies purchased Bitcoin for the first time in Q1 2025, pushing public companies’ holdings to $57 billion.
https://www.youtube.com/watch?v=1iyxu9w47to
magazine: UNI Student Crypto ‘Grooming’ Scandal, Scammed by Fake Women 67K: Asia Express
