The term Bitcoin dominance has always been appearing everywhere in the CRYPTO world. What is exactly Bitcoin Dominance? At the very top of the CoinMarketCap’s homepage, you will always see this number. However, what does this number means?
Image source: CoingMarketCap
Calculating BTC dominance is very direct. If the total Market CAP of all Cryptocurrencies is $1 Trillion whereas Bitcoin’s Marketcap is 400 Billions. Then Bitcoin’s dominance would be 60%
Let’s look at Bitcoin dominance history
Image credit: https://coinmarketcap.com/charts/
From the above Bitcoin dominance chart, we can see that in 2013, Bitcoin had a market dominance of 94%. ERC-20 tokens didn’t exist back then, Ethereum, stablecoins, USDT didn’t even exist then too. Fast forward to 2017, the altcoin season began.
In Feb 2017, Bitcoin dominance was 85.4% whereas Ethereum was $5.7%. However, within 4 short months, Bitcoin dominance drop to just 40%. Bitcoin prices then crashed after the legendary first bull run in 2017 before going to a Bitcoin’s dominance at time low of 32.8%....