Altseason Nears as Liquidity and Regulation Fuel Altcoin Rally: Sygnum
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Sygnum Bank’s Q3 2025 Investment Outlook suggests that the long-anticipated altseason may finally be underway. As liquidity surges, regulatory clarity improves, and capital flows away from Bitcoin, altcoins appear poised for a strong comeback.
Bitcoin Dominance Falls as Capital Rotates to Altcoins
After peaking earlier this year amid global macro uncertainty, Bitcoin dominance has dropped over 6%, signaling a shift toward altcoins with strong use cases and sustainable tokenomics.
“As regulatory clarity extends to altcoins, capital could rotate toward projects with real economic use cases,” Sygnum stated.
This change follows a broader market rally driven by spot Bitcoin ETF inflows, which exceeded $160 billion AUM, and a record Bitcoin all-time high of over $123,000 on July 14.
Ethereum Leads the Charge with Institutional Momentum
The SEC’s confirmation that protocol staking isn’t a security has reinforced institutional interest. Sharplink plans a $1 billion ETH allocation, while major institutions like BNY Mellon, Société Générale, and others are launching stablecoin and tokenization initiatives on Ethereum.
The altcoin rally is also supported by explosive DeFi activity:
DEX volumes hit $530 billion, reaching 30% of total spot market share
DeFi lending reached a record $70 billion TVL
Liquid staking now accounts for over 30% of ETH supply
Platforms like PancakeSwap (BNB Chain) and PumpSwap (Solana) have led the DEX surge, while leveraged DeFi positions show rising investor risk appetite.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
