Bitcoin Dominance Is Actually Above 90%, New Research Suggests

Bitcoin’s true share of the total market capitalization for all cryptocurrencies could be as high as above 90%, Forbes reported on Aug. 22.

While mainstream crypto data aggregators have been pointing to a dominance level of around 70%, analysts at Arcane Research have calculated that the real level may be much higher.

Liquidity must be taken into account

Arcane Research has argued that to get a more accurate measure of Bitcoin’s dominance, liquidity should be factored into the equation. They write: 

“One might be able to sell one token for 3 dollars, but what happens if you want to sell 1 million? Without accounting for liquidity, market capitalization becomes a meaningless measure.”

Using trading volume as a simple indicator of liquidity — with the concession that a more sophisticated measure could be constructed for more granular results — Arcane Research has re-calculated the volume-weighted market capitalization of the cryptocurrency market. 

Their findings point to a…