By Frank Martin (MoneyAmped.com)
According to a recent report by Sygnum, altcoins are poised for recovery rallies this quarter thanks to improved crypto rules. The Swiss bank said clear regulations are creating a strong foundation for a massive altcoin season in the coming months.
Sygnum added that regulatory developments under Donald Trump’s administration, such as the formulation of stablecoin regulations and the creation of the Digital Asset Stockpile, could fuel cryptocurrency adoption this year.
When Will the Altcoin Season Start?
According to the bank, altcoin adoption could reduce Bitcoin’s dominance, which recently hit a four-year high, suggesting that investors were rotating their money into a crypto asset considered safer. Analysts at Sygnum anticipate the start of an altseason once BTC’s dominance plunges below 50%.
So, which altcoins are likely to rally in quarter two? Sygnum says crypto projects with utility could see higher adoption than others. The bank explains that blockchains like Aptos, Toncoin, Berachain, and Sui, which address various limitations of Solana, Bitcoin, and Ethereum, will likely be attractive to investors, thus witnessing a price surge in their native tokens.
Are Meme Coins Dead?
While Sygnum says utility altcoins are the biggest beneficiary of regulatory clarity, meme coins are still a dominant narrative in crypto this year, according to CoinGecko data, which indicates that 27% of crypto retail investors worldwide are interested in meme coins.
However, the data shows that investor interest in meme coins declined in quarter one due to a series of failed celebrity projects, such as the LIBRA token, launched by Argentine President Javier Milei. LIBRA crashed 94% a few hours into its launch after the team behind it dumped over $100 million worth of tokens.
Meanwhile, as retail investors show interest in meme coins, institutions are only interested in Bitcoin. At the start of the week, Michael Saylor’s Strategy, the largest institutional Bitcoin holder, bought $248 million worth of BTC. Furthermore, 12 publicly traded companies have acquired the coin for the first time in the past three weeks amid the trade war between the United States and its partners.
