Altcoins Expected to Rebound in Q2 2025 Due to Regulatory Changes
The altcoin market experienced volatility in Q1 2025, peaking during the inauguration of US President Donald Trump before declining by quarter's end.
Key insights from Sygnum include:
- Potential rebound for altcoins in Q2 2025 due to improved regulations for digital assets.
- Bitcoin's market dominance increased to 59.1%, a level not seen in years.
- Increased market competition expected as crypto enthusiasts focus on economic value.
- Emerging protocols like BeraChain and Aptos may enhance customer satisfaction with innovative options.
- Protocols offering sustainable frameworks, such as Sonic and BeraChain, are gaining traction.
- Layer 2 network Base leads in Total Value Locked (TVL), throughput, and transactional levels.
Comparing Q1 and anticipated Q2 2025:
- Q1 2025 saw a total crypto market cap decline of 18.6%, losing $633.5 billion.
- DeFi TVL dropped from $177.4 billion in Q4 2024 to $128.6 billion.
- Altcoins Solana and Base recorded TVL decreases of 23.5% and 15.3%, respectively.
- BeraChain rose to sixth place with $5.2 billion in DeFi TVL.
- Meme coins captured 27.1% of global investors, ranking just below AI tokens at 35.7%.