What is Bitcoin Dominance?
What is Dominance?
Dominance means authority and control. Market dominance is a measure of comparing the cryptocurrency market value to the total market cap.
What is Bitcoin Dominance?
Bitcoin is the father of the cryptocurrency market, being a pioneer and having the largest market cap. Bitcoin dominance rate is 65.08%. We can say that currently, there are more than 5 thousand cryptocurrencies, and the number is constantly growing. In the cryptocurrency market, the total value of digital assets in circulation is called the total market value. Such as Bitcoin, Ethereum, Litecoin, Ripple, Stellar Lumens, Basic Attention Token, Menapay, Bilira, Avalanche, and all the other coins are the sum of the total digital assets value. The total amount of crypto investments in circulation is $436 Billion. Bitcoin is the father of the cryptocurrency market, being a pioneer and having the largest market cap. Bitcoin's market dominance is 65.08%.
You may be interested in: Bitcoin
Why Is Bitcoin Market Dominance on Rising?
Bitcoin price growth attracts more investors and leads to an increase in transaction volume; the high attraction compared to other cryptocurrencies is one factor that triggers Bitcoin's market dominance growth, too. The dominance growth indicates that the money inflow into Bitcoin is increasing. There are two possibilities related to the subject. Bitcoin has been bought with the money that has just entered the market, or the transition from altcoins to bitcoin has taken place. If it sinks, we can say that the opposite situation is happening. As Bitcoin's dominance rate increases, there is a decrease in altcoins, and an increase in altcoins occurs as Bitcoin's dominance rate decreases.
What is Ethereum Dominance?
Ethereum, which reserves different software at its core and creates new altcoins, has a more innovative system than Bitcoin's blockchain. Moreover, because Ethereum blocks in 15 seconds are created, the approval process is rapid, too. As a result, Ethereum market dominance is a ratio between the total market value. Ethereum accounts for 11.62% of the $436 Billion in total cryptocurrency investments. In other words, Ethereum's dominance is 11.62%.
Why Is Ethereum Market Dominance on Rising?
Ethereum blockchain planned to switch to a less energy-intensive proof-of-stake (PoS) system in January 2020, leaving the PoW system behind. For ETH 2.0 transition, the Proof-of-Stake (PoS) algorithm will be used, and 524.268 ETH must be sent, which means, be staked in the frame of the present deposit contract. So far, 38,693 ETH have been staked. This progress to be completed can lead Ethereum dominance to rise. The dominance growth indicates that the money inflow into Ethereum is increasing. To summarize, Ethereum has been bought with the money that has just entered the market, or the transition from altcoins to bitcoin has taken place.
Check out: Best Cryptocurrencies to Invest