Grayscale's Research Director, Zach Pandl, made evaluations regarding Bitcoin's dominance in the cryptocurrency market.
Pandl noted that Bitcoin’s market dominance is more likely to stabilize in the 60% to 70% range rather than experience a sharp decline over the next 9 to 12 months.
“When the market focuses on macroeconomic instability and risks to the US dollar, Bitcoin’s dominance may increase. However, when the market focus is on various applications of blockchain technology and innovations in the field of cryptocurrencies, Bitcoin’s share may decline,” Pandl said.
Stating that Bitcoin benefits from being seen as an “independent asset” like gold, Pandl said that it has also attracted a significant portion of the capital entering the crypto market thanks to the ETF products approved last year.
Grayscale official said that Bitcoin is strong from a macro perspective, while altcoins draw a positive picture in terms of technological developments and user adaptation, and said, “My basic scenario is that Bitcoin's market dominance rate will stabilize from now on.”
*This is not investment advice.
