Bitcoin News Today: Bitcoin's 6% Market Share Drop Sparks Altcoin Resurgence as DEXs Capture 30% Volume Amid Regulatory Clarity

The cryptocurrency market is undergoing a structural shift as Sygnum’s Q3 2025 Investment Outlook highlights a decline in Bitcoin’s dominance and a resurgence of interest in altcoins. Regulatory clarity and capital reallocation are fueling what the firm describes as a potential “altseason,” a period historically marked by a migration of investment from Bitcoin to alternative cryptocurrencies with strong utility-driven fundamentals. Bitcoin’s market share has dropped by over 6% since early 2025, signaling a shift in investor behavior toward diversified crypto assets [1].

The report underscores that jurisdictions are progressively establishing clearer frameworks for altcoins and staking activities, reducing legal uncertainties and encouraging institutional participation. This regulatory progress has enabled decentralized exchanges (DEXs) to capture 30% of crypto spot trading volume in Q3 2025, with total trading volumes reaching $530 billion. Decentralized finance (DeFi) lending platforms also hit an all-time high of $70 billion in locked assets, reflecting heightened risk appetite among investors [1]. Sygnum notes, however, that this momentum carries risks, particularly the potential for a memecoin-driven bubble akin to past speculative frenzies [1].

Bitcoin’s performance remains a cornerstone of the market’s bullish narrative. The asset’s price surged to a record $123,000 on July 14, 2025, driven by a supply-demand imbalance exacerbated by Bitcoin Spot ETFs. These funds now hold over $160 billion in assets under management, accumulating more than 110,000 BTC in the last quarter alone. The report attributes Bitcoin’s resilience to sustained institutional demand and a tightening supply environment [1]. Ethereum, meanwhile, is benefiting from its Pectra upgrade, which expanded staking capacity and improved protocol efficiency. Regulatory confirmation from the U.S. Securities and Exchange Commission that staking is not subject to securities laws has further bolstered institutional adoption, with nearly 30% of Ethereum’s liquid supply now staked [1].

The interplay between Bitcoin’s dominance and altcoin growth remains a focal point. While Bitcoin’s market share decline suggests a rotation of capital, Sygnum emphasizes that the asset’s structural strength—rooted in its limited supply and ETF-driven accumulation—will likely continue to underpin its price trajectory. Ethereum’s integration of institutional-grade applications, including tokenization and stablecoin projects, is also reshaping its role as a foundational layer for decentralized finance [1].

Despite these positives, market participants are urged to remain cautious. Sygnum highlights the rapid rise of decentralized exchanges and the proliferation of memecoins as potential triggers for overvaluation. The firm advises investors to prioritize projects with verifiable use cases and sustainable token models to mitigate exposure to speculative corrections [1].

The Q3 2025 trends underscore a maturing crypto ecosystem, where regulatory clarity and technological advancements are creating new avenues for capital allocation. As the market navigates the balance between Bitcoin’s dominance and altcoin innovation, Sygnum’s outlook serves as a barometer for evolving investor sentiment and market dynamics [1].

Source: [1] Bitcoin Dominance Declines as Sygnum Suggests Potential Altseason Amid Regulatory Clarity and Market Shifts (https://en.coinotag.com/bitcoin-dominance-declines-as-sygnum-suggests-potential-altseason-amid-regulatory-clarity-and-market-shifts/)