What is BTC Market dominance? What does it mean? – BTC is undoubtedly the most important and most valuable of cryptocurrencies. The coin, which was first revealed by an anonymous person named Satoshi Nakamoto in 2009, created a great revolution and became the pioneer of a new trend.
During this time, the number of cryptocurrencies has increased considerably. In total, more than 6,000 cryptocurrencies are thought to exist.
However, it is worth noting that most of these coins are worthless (including those under one cent). None of these more than 6,000 cryptocurrencies has surpassed Bitcoin in market dominance.
In this article, we will give answers to questions such as what is BTC Dominance, what is it and what is affected by it.
What is BTC Market Dominance?
In short, BTC Market dominance shows the overall value of Bitcoin versus other cryptocurrencies. It is an index that shows the area occupied by Bitcoin in crypto money markets in terms of market capitalization.
In fact, the current market value of BTC has decreased considerably. In the past, cryptocurrencies were not that widespread. In 2013, Bitcoin dominated the market by 96%. In 2018, this rate decreased to 32%.
However, currently, the market dominance of Bitcoin is 66%. As altcoin prices have become increasingly widespread, Bitcoin’s dominance in the market has gradually decreased.
Why does BTC Market Domination Decrease and Rises?
Market dominances were first recorded in 2013. At that time, Bitcoin’s market dominance was 96%. But market dominance has often changed.
In 2014, there was an 80% dominance. Even if there was a slight decrease with the introduction of Ripple for a while, the dominance of 0% and above was still preserved.
Bitcoin took a major hit when altcoins like Ethereum became popular. Bitcoin’s dominance had declined to 37% at that time. At that time, the current dominance of ETH had risen to 32%, coming incredibly close to BTC.
There was also concern that the situation would get worse than that. With the introduction of the Bitcoin Cash project, there were rumors that the dominance would be divided, but there was no fear.
As we mentioned earlier, dominance has fluctuated constantly. Even at $20,000, the highest figure in Bitcoin’s history in 2017, there has been a decline in market dominance. After a few months of the rise, the dominance will again decline to 32%. However, in this case, the giant cryptocurrency will rise to 60% in 2019.
The altcoins that hit Bitcoin the hardest are Tether, XRP and Ethereum. Due to the high usage rate of these altcoins, BTC manages to exceed 60% limits. At the time of writing, Bitcoin’s market dominance was 66%.
What Effects Will Change in Bitcoin Domination Cause?
The values and market dominance of cryptocurrencies often occur in parallel with each other. At times when Bitcoin’s market dominance drops, altcoins start to appreciate. When altcoins fall, Bitcoin’s dominance increases.
However, this should not be confused with value. Because cryptocurrencies can often show similar trends according to developments. There is a similar situation at the moment. After the positive developments related to cryptocurrencies, altcoins have also increased with BTC.
Especially recently, Bitcoin and Ethereum have risen and fallen together. However, market dominances are evaluated in a different pattern.
The periods when the trading volume of altcoins increases and market dominance increases in parallel with this is called “alt season”.
What Will Market Values Be Now?
There is an unstoppable rise in Bitcoin right now. Bitcoin has broken all the records of the year one by one. In fact, it seems to have almost shattered all records, except for the Bitcoin value.
When this is the case, Bitcoin knows how to maintain its market dominance against altcoins. Altcoins have to wait for BTC to drop to gain a share of dominance.
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Ethereum, like Bitcoin, has gained good momentum. However, it is difficult to say that it has a great impact on market dominance at the moment. Currently, ETH’s dominance is at 11%. Yet, it may be likely to improve it.
Ethereum 2.0 will be released on December 1st. Accordingly, if a decrease is observed in the value of BTC, ETH may increase its market dominance a little bit.
The cryptocurrency world is going through a very active period right now. The potential changes in market movements are eagerly awaited by the community by following the developments closely