Sygnum: Improved Digital Asset Regulation and Increased User Engagement Expected to Drive Altcoin Rebound in Q2

Swiss bank Sygnum states that with improved digital asset regulation and increased user engagement, altcoins are expected to rebound in the second quarter of 2025. Although Bitcoin's market dominance reached a four-year high in April, Sygnum believes that regulatory advancements in the U.S., such as the establishment of a digital asset reserve by President Trump and the advancement of stablecoin regulation, may drive broader cryptocurrency adoption. Sygnum anticipates that protocols successful in gaining user engagement will outperform the market, while Bitcoin's dominance may decline. The market's increased focus on economic value has heightened competition, driving better product development, which will ultimately benefit consumers. The report notes that while high-performance blockchains address limitations of Bitcoin, Ethereum, and Solana, they still face challenges in achieving widespread adoption and revenue.