As compared to cryptocurrency market, the prices of stocks in stock market are quite stable. Unlike various altcoins, they do not suddenly increase or decrease (pump or dump) with 30-40% in a day. Is this because less people are into crypto market and the cryptocurrency prices are controlled by those who have ample amount of coins?
So, will mass adoption stabalize the prices of Bitcoin and altcoins?
It's a very interesting question.
I personally have always thought that stability is a relational thing. Because people still perceive value in fiat terms at the moment, it is incredibly difficult for bitcoin to gain footing as some form of stable currency, because people aren't using it for actual commercial purposes in the majority of the time.
Of course, this will change in the future, which is I think what you're proposing.
I personally think that increased adoption, especially merchant adoption, will certainly help the value of bitcoin become less volatile. Firstly, the increased market cap means that manipulation of the market becomes tougher to do, especially in the short term. Secondly, if people start pricing goods and services in the future in terms of BTC, these goods and services will essentially lay a "foundation" for the price, making it less prone to fluctuations.