While altcoins remain in sharp focus across the cryptocurrency market, Grayscale's head of research Zach Pandl said investors are chasing names such as Zcash and Hyperliquid — but the real opportunity may lie in large smart contract networks that the market is currently overlooking. Grayscale ranks among the largest asset managers in digital assets, and views from its research desk are widely followed across the industry.

Investor Focus Shifting Toward Niche Sectors

According to Pandl, the three major smart contract networks — Ethereum, Solana, and $BNB — have not yet become a common preference among investors, even though they form the core infrastructure of the crypto ecosystem. That infrastructure is substantial in practice: Ethereum remains the leading settlement layer for decentralized finance and stablecoin activity, Solana has built its reputation on high-throughput, low-cost transactions, and $BNB anchors the BNB Chain and the broader Binance ecosystem. Pandl stated that while investor interest is concentrated on projects like Zcash and Hyperliquid, the potential of Ethereum, Solana, and $BNB is not being sufficiently assessed.

Pandl pointed out that investors risk overlooking the networks that underpin the broader crypto ecosystem while searching for new opportunities, and he urged market participants not to disregard the established classics. He emphasized the importance of ETH, SOL, and $BNB, while acknowledging that Zcash has achieved a notable position in the financial privacy space and Hyperliquid in the perpetual futures market — the thematic corners of the industry currently capturing much of the market's attention.

However, he argued that interest in these projects should not overshadow the long-term potential of large smart contract networks. In his assessment, the widespread adoption of blockchain-based financial services could bring the importance of established networks back into focus, since much of that activity would ultimately run on the rails these networks provide. The framing captures a recurring tension for market participants: chasing returns in narrow, narrative-driven trades versus holding exposure to the infrastructure that hosts a large share of the sector's on-chain activity.

Macro Outlook: No October Hike, December Possible

Pandl also addressed monetary policy, saying he does not expect the US Federal Reserve to raise interest rates again this month. In his view, raising rates shortly before the upcoming election would be somewhat bold, so he does not anticipate a hike in October, though another increase in December remains possible. The Fed sets its benchmark rate at scheduled Federal Open Market Committee meetings, leaving the October and December gatherings as the remaining policy dates where such a move could occur.

He added that Bitcoin and altcoins could withstand one to three minor interest rate increases, as a tightening cycle comparable to the 500 basis point increases seen in 2022 and 2023 is not anticipated. For context, that earlier cycle carried the federal funds rate to its highest level in more than two decades and coincided with broad pressure across risk assets — an environment Pandl does not expect to be repeated this time.

This is not investment advice.

Source: CryptoNewsNet