The long-awaited altseason may finally be on the horizon. According to Sygnum Bank’s Q3 2025 Investment Outlook, multiple signals are aligning — from growing institutional liquidity to regulatory clarity — that could spark a fresh rally in altcoins, potentially shifting momentum away from Bitcoin.



🔑 Key Highlights from Sygnum’s Q3 Report:


1. Bitcoin Dominance Is Slipping

After peaking at its highest market share since 2021, $BTC dominance has dropped over 6%, indicating a possible capital rotation toward altcoins.


2. Liquidity Is Expanding Rapidly

Bitcoin Spot ETFs have now surpassed $160 billion in AUM, adding over 110,000 $BTC last quarter. This liquidity is starting to flow into other sectors, particularly Ethereum and DeFi.


3. Regulatory Clarity Boosts Confidence

The SEC's stance that protocol staking doesn’t classify as a security is a game changer, especially for Ethereum. This clarity opens doors for greater institutional participation.


4. $ETH Takes Center Stage




  • Nearly 30% of ETH’s liquid supply is now staked.




  • Institutional interest is growing: Sharplink is planning a $1 billion ETH allocation.




  • Traditional finance giants like BNY Mellon and Société Générale are building tokenized assets on Ethereum.




  • The recent Pectra upgrade and ETF inflows have helped Ethereum decisively break its long-term downtrend.




5. DeFi Sector Is Booming




  • DeFi lending TVL reached a record $70 billion.




  • Liquid staking now makes up over 30% of staked ETH.




  • Decentralized exchanges (DEXs) accounted for 30% of spot trading volume, led by PancakeSwap and PumpSwap on Solana.




  • Sygnum highlights DeFi lending as a core growth area: “Investor risk appetite is returning, and leveraged exposure is rising.”





⚠️ But a Word of Caution: Memecoin Bubble Risk


While optimism is rising, Sygnum warns of the growing memecoin frenzy.



“History suggests such bubbles end in sharp corrections if left unchecked,” the report states.




📊 Final Thoughts


The Q3 report presents a cautiously bullish case for altcoins: capital is rotating, regulation is becoming clearer, and infrastructure is maturing. But with speculative assets like memecoins also gaining momentum, investors should tread with informed caution.





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