Sygnum, a Swiss bank, forecasts that altcoins could experience a resurgence in Q2 2025 due to enhanced regulations surrounding digital assets. The bank's Q2 investment outlook highlights significant improvements in crypto regulations, laying the groundwork for a promising altcoin market rally. Despite Bitcoin's current dominance hitting a four-year high, Sygnum predicts that regulatory advancements—particularly in the U.S.—will foster broader crypto adoption. Successful protocols that attract users are expected to outperform Bitcoin, leading to a decline in its dominance. The report notes heightened competition among crypto projects, which is likely to result in better-quality products and user engagement. Sygnum emphasizes the innovative approaches taken by projects like Toncoin, Sui, Aptos, Sonic, and Berachain, transforming the landscape alongside promising layer-2 networks such as Base. Although memecoins have dominated investor interest recently, institutional investors continue to prioritize Bitcoin with significant investments reported in Q1 2025.

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