CoinMarketCap data on the Bitcoin dominance index at 69% is not true, since the real market share of Bitcoin may exceed 90%. This is stated in a study by Arcane Research.
According to company analysts, in calculating this indicator, it is worth considering liquidity in the first place.
To re-calculate the market capitalization of cryptocurrency assets, Arcane Research researchers focused on a measure of trading volume. This methodology allowed us to obtain an estimated indicator of the superiority of bitcoin at the level of 90%. At the same time, analysts admitted that more advanced metrics will allow for more accurate calculations.
It is worth noting that stablecoins were excluded from the calculations, since, according to Arcane Research, they are not competitors of cryptocurrencies.
“The data obtained confirm the version that the role of alternative cryptocurrencies continues to decline. The network effect leads money to where liquidity decides, ”the study said.
The Arcane Research report may be of interest, in particular, to developers of the payment infrastructure.
“It is not easy to compare and contrast each other with projects focused on different niches. In the context of cryptocurrencies, someone may say that the very idea of comparing the relative strength of different coins and tokens is untenable because the solutions in question complement each other, ” analysts add.
Recall that the previous increase in the Bitcoin dominance index was recorded in July . Then this figure rose to 66.7%.
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