Bitcoin (BTC) Crypto Market Cap Dominance Hits 51%, Highest in 2018
For the first time since December 19th 2017, the market dominance of Bitcoin has crossed 50%.
Since the early weeks in May, Bitcoin has begun to control a more significant share of the cryptocurrency market. This control is measured based on the percentage of BTC’s market capitalization to the total market cap of the over 1,600 virtual coins in existence.
After peaking at 45 percent in late March, the Bitcoin market dominance slipped to 36 percent in the first week of May. Since then, BTC’s market share has consistently climbed upwards.
The above chart shows bitcoin's dominance rate has been on a steady incline over the past few months, currently representing a 14 percent increase from May 1st. In the same time period the market dominance of all other cryptocurrencies have largely been on the decline.
Bitcoin's "market dominance" (which is a silly & easily manipulable metric) is going back up because Bitcoin is the worst cryptocurrency except for all the others.
— Jameson Lopp (@lopp) August 11, 2018
One major contributing factor to BTC regaining a significant market share is based on the struggles of the altcoin market. 2018 began with the devastating Coincheck hack which resulted in the theft of half a billion dollars’ worth of NEM tokens. Notable altcoins like Ethereum, XRP, and Bitcoin Cash have also suffered stagnation in 2018.
It can clearly be seen that Bitcoin’s highest market dominance in over a year has been close to 70% when Bitcoin along with most cryptocurrencies were on the biggest bull run the crypto market has seen.
However, the correlation between market dominance and coin price has been ambiguous and speculative at best. CNBC pointed out that bitcoin’s current dominance percent is similar to that of 2017, just before BTC reached its all-time high of about USD$19,780.