What is Bitcoin Dominance? And what application does it have in crypto currency market analysis?
One of the topics that we must consider in the analysis of the cryptocurrency market is the issue of bitcoin dominance or the degree of bitcoin dominance in the cryptocurrency market. If you go to different sites like Coin Market Cap, you will notice that the phrase BTC dominance is placed at the top of the site and you see every time you look at it which shows a percentage. Simply put, the total amount of asset available in the cryptocurrency market is now about $400 billion.
If you look closely at the bitcoin section of the Cap Market column, that’s about $240 billion of that BTC asset. If you do a simple calculation, you will reach the same percentage that you see here.
In fact, currently, 61% of the asset in this market belongs to Bitcoin and the rest of the asset, 39%, is spread over more than 7,500 different cryptocurrencies.
Now if we click on the bitcoin percentage section, we will be enter into the Coin Market cap page which shows us a graph, and if we look closely, we find that it shows a different number in the bitcoin dominance in each time period.