Altcoins, crushed by Bitcoin (BTC) dominance rally, are still far from their ATHs.
While Bitcoin reached a new ATH following Donald Trump’s victory in November, most altcoins, especially Ethereum (ETH), are below their ATHs.
While investors are wondering when the rally in altcoins will begin, major Swiss bank Sygnum claimed that altcoins will recover in the second quarter.
In a recent report, Sygnum stated that altcoins are set to recover in the second quarter of 2025 amid improving crypto regulations and increasing user adoption.
Sygnum analysts suggest that regulatory developments in the United States, including US President Donald Trump’s push to create digital asset reserves and advances in stablecoin regulations, could encourage wider adoption of cryptocurrencies.
“Bitcoin’s dominance reached a four-year high in April, signaling that crypto investors are shifting their funds to an asset perceived to be relatively safer.
“However, we expect protocols that are successful in attracting and engaging users with Trump's incentives to outperform and Bitcoin's dominance to decline.”
In its report, Sygnum highlights protocols such as Toncoin (TON), Sui, Aptos (APT), Sonic, and Berachain (BERA) among altcoins, while citing Base as a prominent layer-2 network.
*This is not investment advice.
