Altcoins Set To Reclaim The Spotlight In Q2 2025?

For months, the “altseason” has been awaited like a summer rain in the desert: hoped for, announced, but often postponed. Yet, a glimmer of hope emerges from the latest report by Sygnum Bank, which suggests that altcoins could finally experience a revival in the second quarter of 2025. In the shadow of a dominant bitcoin, altcoins could benefit from a more favorable regulatory climate and increased user traction.

Regulations Crafted to Revive the Sector

Donald Trump’s crypto America may have more than just a tweet up its sleeve. With the establishment of a Digital Asset Stockpile and the resumption of the regulatory work around stablecoins, Washington is shifting into second gear.

In its “Investment Outlook“, Sygnum notes:

The regulatory landscape for crypto use cases has radically improved.

It added that these advances “lay the foundation for a powerful altcoin rally”.

In other words, while the dollar wavers, regulators are sharpening their pencils to not miss the innovation train. Decentralized projects might thus transfer value to token holders without ending up in a legal labyrinth.

And in the ring corner, the United States is not alone. Other jurisdictions are also refining favorable rules. Enough to offer an unexpected launching pad for projects still seeking traction.

Bitcoin at the Peak: But For How Much Longer?

In April, bitcoin’s dominance over the crypto market peaked at an unprecedented level not seen in four years. For cautious investors, it’s the Noah’s Ark of digital assets. But of course, every season comes to an end.

Sygnum anticipates that “protocols capable of attracting users will outperform bitcoin, and its dominance will decline.” This is referred to as a reshuffling of the cards.

Certain names come up persistently: Toncoin, with its close connection to Telegram, Sui, Sonic, Aptos, Berachain… All are developing distinctive strategies. At Sonic, developers who retain users are rewarded. Berachain, meanwhile, encourages its validators to inject liquidity into DeFi. Another approach: more organic, more rooted.

And while private blockchains capture value without redistributing it, others are slowly weaving their web. The verdict is clear: King Bitcoin may see its subjects demand more attention.

Altcoins: Fireworks or Damp Squib?

Not everything is rosy in the altcoin world. Although conditions are improving, adoption remains uneven. According to Sygnum, initiatives like Base, even though leading in volumes, struggle to provide a fair model to their token holders.

And what about the irrational frenzy around memecoins? CoinGecko recently revealed that in the first quarter, memecoins accounted for 27.1% of investor interest — just behind AI tokens. A fascination that makes you laugh… until it makes you cry.

But some players are changing the game. The report cites UXLINK surpassing 30 million registered users. Proof that innovation can rhyme with adoption — provided it is based on a robust model.

Another perspective from Bitwise: 12 publicly listed companies bought bitcoin for the first time in Q1 2025, bringing public holdings to $57 billion. An institutional rush that highlights growing interest but also refocuses attention on bitcoin.

According to market signals, AI tokens and memecoins will be the darlings of 2025. But altcoins do not intend to remain on the sidelines. The question remains whether this regulatory awakening and thirst for innovation will be enough to shake the established order. Will decentralization finally find its moment of glory?