According to an analysis by Sygnum Bank, market conditions in the cryptocurrency sector are gradually improving, driven by clearer regulations and increasing liquidity.
Market Situation
Sygnum Bank reports that capital is starting to flow back into the sector due to improving market conditions. Clearer regulations and increased liquidity are rekindling investor interest.
Bitcoin and Ethereum Dynamics
Bitcoin is experiencing a decline in its dominance as investors shift funds into smaller tokens. However, BTC remains strong, hitting new highs above $123,000, fueled by rising ETF demand and a persistent supply squeeze. Ethereum is also gaining traction after a recent protocol upgrade.
DeFi Market and Its Challenges
Decentralized exchanges are reaching record volumes, capturing 30% of all crypto spot trades. DeFi lending has surged, with locked value reaching new peaks. However, Sygnum cautions that the meme-driven hype could trigger a sharp correction if left unchecked.
Thus, the next phase of growth in the sector may depend less on speculation and more on real-world applications of the technology.
