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Sygnum: Improved digital asset regulation and increased user participation are expected to drive altcoins to rebound in Q2

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Swiss bank Sygnum stated that with the improvement of digital asset regulation and increased user participation, altcoins are expected to rebound in the second quarter of 2025. Despite Bitcoin's market dominance reaching its highest level in four years in April, Sygnum believes that regulatory progress in the United States, such as President Trump's establishment of digital asset reserves and the promotion of stablecoin regulation, may drive broader adoption of cryptocurrencies.

Sygnum expects that agreements successfully obtained through user participation will outperform the market, and Bitcoin's dominance may decline. The market's focus on economic value has increased competition, driving better product development, which will ultimately benefit consumers. The report points out that high-performance blockchains, while addressing the limitations of Bitcoin, Ethereum, and Solana, still face challenges in achieving widespread adoption and revenue.

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