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A long-anticipated rotation into altcoins whitethorn beryllium underway amid improved regulatory clarity, increasing liquidity and a surge successful onchain activity, according to Sygnum’s Q3 2025 Investment Outlook.
Geopolitical tensions and US fiscal uncertainty earlier this twelvemonth led to a sell-off crossed the altcoin sector. However, changing marketplace dynamics “may ignite the long-awaited altseason,” the integer slope said successful the report shared with Cointelegraph.
“As regulatory clarity extends to altcoins, superior could rotate toward projects with existent economical usage cases and sustainable token models, and possibly this displacement is already underway arsenic immoderate sectors presently show,” Sygnum wrote.
The study besides noted a decline successful Bitcoin dominance, which deed its highest level since 2021 amid geopolitical and trade-related macro pressures, but precocious dropped implicit 6% amid superior instrumentality to altcoins.
Bitcoin dominance chart. Source: TradingViewRelated: GENIUS Act to spark question of ‘killer apps’ and caller outgo services: Sygnum
Bitcoin hits caller highs connected proviso squeeze
The study said that liquidity trends for Bitcoin (BTC) stay “extremely bullish,” arsenic a persistent proviso and request imbalance has driven the largest cryptocurrency by marketplace worth to caller all-time highs. BTC deed an ATH supra $123,000 connected July 14.
“Bitcoin Spot ETFs person present exceeded USD 160 cardinal successful assets nether management, accumulating much than 110k BTC past 4th alone,” Sygnum wrote. Ether (ETH) followed with falling speech balances, ETF inflows and astir 30% of its liquid proviso staked.
ETH ETFs spot continued inflows. Source: SoSoValueThe Ethereum communicative shifted aft a successful Pectra upgrade, which “raised the staking headdress and introduced respective protocol improvements.” Regulatory clarity has reinforced this trend, arsenic the US Securities and Exchange Commission clarified that protocol staking “does not autumn nether securities law.”
Sygnum said Ether has “conclusively breached its semipermanent downtrend,” citing a surge successful organization demand. Sharplink is planning a $1 cardinal ETH allocation, and a caller question of tokenization and stablecoin initiatives from Wall Street giants, including BNY Mellon, Société Générale and a Trump-backed USD1 stablecoin, are launching connected Ethereum.
Related: BitMine’s $1B repurchase program favors shares implicit much ETH — for now
DEX marketplace stock hits 30%
Decentralized exchanges hit a grounds precocious past quarter, capturing 30% of each crypto spot trading aft memecoin launches pushed DEX volumes to $530 billion. The surge was led by PancakeSwap connected BNB Chain, portion Solana’s PumpSwap rapidly overtook Raydium, the study noted.
DeFi lending besides deed an all-time precocious of $70 cardinal locked, and liquid staking surpassed 30% of Ether’s supply. “The DeFi lending assemblage is 1 of the strongest beneficiaries of marketplace rallies, with progressive loans connected Ethereum surging to caller all-time highs arsenic investors instrumentality connected greater hazard and leveraged exposure,” Sygnum wrote.
However, the slope warned that the existent momentum successful altcoins could spark different memecoin bubble, which past suggests whitethorn extremity successful a crisp correction if it continues unchecked.
Magazine: Crypto traders ‘fool themselves’ with terms predictions — Peter Brandt
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