However, it added that “none of the positive developments have been priced in.” In April, Bitcoin dominance reached a four-year high, signaling that crypto investors are rotating their funds into an asset perceived to be relatively safer. But Sygnum believes regulatory developments in the US, such as President Donald Trump’s establishment of a Digital Asset Stockpile and advancing stablecoin regulations, could propel broader crypto adoption.“We expect protocols successful in gaining user traction to outperform and Bitcoin’s dominance to decline,” Sygnum wrote. Increased focus on economic value ignites competitionSygnum also said that competition would increase as the market focuses on economic value.
The report pointed out that while the memecoin frenzy on the blockchain pushed its users and revenue to new highs, it made an equally sharp decline after memecoins started losing steam. Despite this, Sygnum noted that Base remains the layer-2 leader in metrics like daily transactions, throughput and total value locked. Related: Italy finance minister warns US stablecoins pose bigger threat than tariffsMemecoins still a leading crypto narrative in Q1Despite recent price declines, memecoins remained a dominant crypto narrative in Q1 2025.
Increased competition in a market often results in better products, ultimately benefiting consumers: “The market’s increased focus on economic value compels greater competition for user growth and revenues, with rising protocols such as Toncoin, Sui, Aptos, Sonic, or Berachain taking different approaches.”Sygnum added that while high-performance blockchains address limitations of the Bitcoin, Ethereum and Solana blockchains, these chains find it challenging to achieve meaningful adoption and fee income. Sector breakdown by market capitalization.
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Author / Journalist: Cointelegraph by Ezra Reguerra
The story "Altcoins may rally in Q2 2025 thanks to improved regulations: Sygnum" has 466 words across 21 sentences, which will take approximately 2 - 4 minutes for the average person to read.
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