Sygnum Bank’s Q3 2025 Investment Outlook underscores a significant market shift characterized by accelerating altcoin adoption, Bitcoin’s record-breaking price surge, and expanding decentralized finance (DeFi) ecosystems. This transition is primarily fueled by enhanced regulatory clarity and escalating institutional participation across cryptocurrency markets.
Bitcoin’s price has surpassed $123,000 amid severe supply-demand imbalances, driven partly by substantial institutional inflows. Spot Bitcoin Exchange-Traded Funds now collectively hold assets exceeding $160 billion, reflecting widespread acceptance among traditional investors.
Recent regulatory advancements have accelerated altcoin expansion, reducing Bitcoin’s market dominance by over 6%. Meanwhile, decentralized exchanges now command approximately 30% of the cryptocurrency spot trading volume.
Ethereum has experienced heightened institutional demand following its Pectra upgrade, with nearly 30% of its liquid supply now staked. Major financial institutions are launching robust initiatives directly on Ethereum’s blockchain.
The DeFi sector recorded a historic lending milestone with $70 billion in locked assets, while liquid staking surged to represent over 30% of Ether’s circulating supply. These metrics signal deep market engagement and capital deployment.
Despite optimistic indicators, Sygnum cautions investors about emerging risks including a potential memecoin bubble. The firm advises prioritizing projects with sustainable fundamentals to mitigate exposure to abrupt market corrections.