Dominance Bitcoin – a leading market share in relation to the cryptocurrency altkoinam. This figure ranged between a maximum of 96% in November 2013 and a minimum of 33.4% in January 2018, during the so-called altcoin season.
After the Bitcoin run in 2019, dominance from 51% at the beginning of the year rose to the current 70%. Nevertheless, a new study shows that the real dominance of Bitcoin is approximately 90%, which is much more than the values indicated now.
To get a percentage on each coin, the turnover must be multiplied by the price of the coin, and then divided by the market capitalization of all cryptocurrencies . Performing these calculations shows that Bitcoin has always been the dominant force in the cryptocurrency community.
According to Coingecko , today the dominance of bitcoin in the market is 68.13%, which is close to the maximum value of 69.73%. However, a new study by Arcane explains that when adding trading liquidity, completely different numbers appear.
If we take into account liquidity, which, according to research leader Bendik Shey, allows you to get more accurate data on market capitalization, the position of BTC will be even more significant – about 90%.
“The fact is that you can create a cryptocurrency with 1 billion pre-mined coins and make a deal at a price of, say, three dollars for each. This will provide a total market capitalization of $ 3 billion and 1% market dominance.
The problem is that liquidity is not taken into account in the calculation. You can sell one token for three dollars, but what happens if you want to sell 1 million? Without taking into account liquidity, market capitalization becomes meaningless, ”the expert believes.
Following this logic, altcoins are in an unenviable position. Even top altcoins like Litecoin , Ripple, and Ethereum barely reach a combined 10%.
“Every day, bitcoin is in front, and it is becoming less likely that any other cryptocurrency can compete with it,” Shay added.
Publication date 08/23/2019
Share this material on social networks and leave your opinion in the comments below.
