A few months ago I suggested a likely scenario that would play out in the crypto market, which would also form the basis for my investment strategy HERE. It is now my considered opinion that Bitcoin dominance would drop as it did in 2017 as seen in the pic below...
... and all indications at the time showed that we were on track to repeat that performance and pattern.
My reasoning goes like this...
BTC no longer the playground for the retail investor. Traditional financial entities such as Hedge Funds and large listed corporations are now the 'whales' in Bitcoin and any sharp pullbacks will get snapped up.
The same corporate main stream financial entities will be reluctant to dabble with alt coins whilst there are still bitcoins to be acquired.
Scarcity of BTC will ensure that price is driven up as HODL'ers become more and more reluctant to sell, especially with staking and lending an option.
Ethereum has some serious hurdles to face which I believe may offset their first mover advantage. ETH 2.0 is desperately needed to improve performance during sharp movements. Many liquidations occur due to poor performance during sharp moves as accounts cannot be adjusted timeously.
There are many so called 'Ethereum killers' now competing directly with Ethereum in the Smart Contract (SC) space... such as Solana, Zilliqa, Kusama and Cardano to name but a few. Each of these have unique advantages over Ethereum, being second generation SC platforms, not to mention ridiculously cheap transactions.
The preponderance of DeFi projects will also eat into Ethereum's share of the pie (Polka, YiFearn etc.)
BUT WAIT ... there is a disclaimer here.......
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