Institutional Bitcoin demand may be surging, but Sygnum Bank says altcoins are primed for a rebound. Here are five under-$0.05 cryptos with breakout potential as Q2 heats up.

Bitcoin's dominance has surged to a four-year high. According to Swiss digital asset bank Sygnum, the broader crypto market is only just starting to reflect the impact of a wave of favourable policy changes and altcoins could be the next beneficiaries.

The crypto market has seen some interesting shifts in Q1, with new US policy initiatives and a wave of favorable regulatory changes setting the stage for what could be a stellar Q2 rally.

As institutional demand for Bitcoin continues to heat up, smaller altcoins could be the next to benefit from this broader market uptick.

While Bitcoin’s dominance has surged to its highest level in four years, the broader crypto market is still lagging behind, suggesting that there’s room for further gains as the impact of new policies and regulations is fully priced in.

According to Swiss digital asset bank Sygnum, the US digital asset reserve initiative, new stablecoin legislation and improved European frameworks are all setting the scene for a strong second quarter.

Ethereum’s layer-2s, particularly Base, have already seen on-chain activity and interest surging. Meanwhile, projects like Toncoin and Sui are experimenting with creative strategies like airdrops and user incentives to foster adoption.

However, many projects, especially those focused on Layer 2, are still struggling to convert hype and developer interest into real revenue streams and users.

Meme coins are also likely to remain volatile in Q2. But they are no longer just a joke. They are increasingly attracting retail capital, especially those with a defined use case or narrative that resonates with traders. Some analysts are highlighting the potential of AI-related tokens or projects focused on scalability solutions.

With that backdrop, here are five cheap cryptocurrencies under $0.05 that are building interesting traction and could be set for a breakout in the coming quarter.

Solaxy (SOLX) – $0.001704

Solana’s rapid rise has come with some growing pains – congestion, transaction failures and, ultimately, an increasing level of user frustration.

Solaxy is the chain’s first dedicated Layer 2 solution, being created to solve exactly those issues. Built using roll-up architecture, Solaxy compresses transactions before pushing them to Solana’s mainnet in smaller batches, drastically reducing gas fees and boosting throughput.

With over $31.3 million already raised in its presale, Solaxy is also one of the most well-funded infrastructure projects of the year. Its testnet blockchain explorer is already live and the team has continued to push weekly updates improving storage speeds, cross-chain functionality and developer tooling.

JOIN THE SOLAXY PRESALE – SOLANA’S SCALABILITY SOLUTION STARTS HERE

Solaxy’s broader thesis is clear: if Solana wants to scale to support the next wave of dApps and meme coins, Layer 2 is no longer optional – it’s essential. And that clarity is driving grassroots support, with over 60,000 followers on social media and rapidly growing interest in the presale.

BTC Bull Token (BTCBULL) – $0.002475

As Bitcoin's price surges, retail traders are turning to BTC Bull Token (BTCBULL) – a low-cost, meme-powered token designed to help holders benefit from BTC’s rise through real incentives. Priced at just $0.002475, BTCBULL links token distribution and burn milestones to Bitcoin price targets.

Every time BTC hits a pre-set price ($150K, $200K, $250K), BTCBULL will airdrop Bitcoin to holders and burn part of its own remaining supply. Meanwhile, those who prefer passive income can stake their BTCBULL tokens and earn up to 83% APY while they wait. The project has already raised nearly $5 million and has passed security audits from both Coinsult and SolidProof.

JOIN BTCBULL PRESALE BEFORE IT ENDS

BTCBULL is fast gaining traction with retail users and crypto analysts. Its community is growing rapidly and its three-pronged model – airdrops, burns and staking – is cutting through with an audience who are tired of meme coins that promise the moon but never deliver.

MIND of Pepe (MIND) – $0.003736

The AI token narrative is heating up again in 2023 and MIND of Pepe is building a uniquely positioned offering within this fast-growing sector. This ERC-20 token, priced at $0.0037365, gives holders access to an autonomous AI agent that continuously scans market sentiment, social media trends and blockchain activity.

The agent’s two key features – a live dashboard and a token-gated terminal – are designed to help users identify and capitalize on profitable trades early. MIND holders can also stake their tokens at a current APY of 273%, while a reserved liquidity pool and controlled token supply help to mitigate price volatility.

ACCESS THE MIND AI AGENT BEFORE THE NEXT PRICE TIER

Already listed on Best Wallet’s “Upcoming Tokens” hub, the project is being positioned as more than a memecoin – it’s an AI-powered market assistant