Currently, the market capitalisation of bitcoin is 109 billion, about $4.3 billion more than all other cryptocurrencies combined
For the first time since bitcoin price touched the historic high of $20,000 in December last year, the market dominance of the cryptocurrency has reached above 50%. Bitcoin on Saturday reclaimed the milestone buoyed by its higher circulation and declining value of alt-coins.
Market dominance is a measure of the share of the market capitalisation of a coin in the global cryptocurrency market. At the time of publishing this report, the dominance of bitcoin had further surged to 51%.
Currently, the market capitalisation of bitcoin is 109 billion, about $4.3 billion more than all other cryptocurrencies combined, according to data available at CoinMarketCap.
The dominance of bitcoin has increased despite the coin trading at $6,300 level, not far from its lowest in 2018. The surge in dominance is mainly thanks to other coins underperforming. Several major cryptocurrencies are trading at their year lows, sinking their respective market capitalisations.
Ethereum, exchanging hands at $320, Ripple’s XRP at $0.30, bitcoin cash at $570, litecoin at $59, cardano at $0.11—each of them are trading at their year lows. Interestingly, they are also among the top 10 cryptocurrencies in the market by market cap.
The combined market capitalisation of next nine cryptocurrencies following bitcoin, that stands at $73.35 billion, tells how skewed the market currently is. It also tells how rest of the 1818 coins being tracked by CoinMarketCap, usually called alt-coins, have performed. The combined market cap of 1808 currencies outside top 10 stands at a mere $31.6 billion.
Another reason for the gradual increase in bitcoin’s dominance in the market in 2018 is its increasing supply. Bitcoin’s circulating supply currently stands at 17.2 million. At the start of the year, the supply was 16.8 million.
Factor in the fact that most of the cryptocurrencies are non-mineable (including five in top 10), i.e. their supply remains more or less the same, thus impacting their market cap more than mineable coins whose supply increase with time, in case there is a drop in prices.
Bitcoin enjoyed highest dominance in the market in the early years of cryptocurrency market when it was perhaps the only viable option. Its dominance dropped below 80% for the first time in December in 2014, only to bounce back above 90% by December next year.The boom in the cryptocurrency market in mid-and-late-2017 brought bitcoin’s dominance in the market to as low as 33%. However, since May this year, the market dominance started surging and the coin has not looked back.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.