Grayscale Research Director: Bitcoin Dominance Rate May Stabilize Instead of Seeing Sharp Declines

BlockBeats News, May 17th, according to Decrypt, Grayscale's Director of Research, Zach Pandl, stated that "Bitcoin's dominance may rise when the market is focused on macroeconomic instability and risks facing the US dollar, while Bitcoin's dominance may fall when the market is focused on various applications of blockchain technology and innovation in the crypto space."

Bitcoin has benefited from being seen as a "non-sovereign asset" similar to gold, and has also absorbed most of the inflows in the crypto market through products such as the approved ETF last year.

Over the next approximately 9 to 12 months, Bitcoin's market share is more likely to stabilize between 60% to 70% of the overall crypto market, rather than experiencing a sharp decline. This judgment is not easy, as both Bitcoin and altcoins have different bullish factors that could come into play.

From a macro perspective, we are bullish on Bitcoin; and from a technology development and user adoption standpoint, we are equally bullish on altcoins. My basic assumption is that Bitcoin's dominance will trend towards stability from the current levels."