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.

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

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 new figure of above 90% for Bitcoin - over 20% higher than other estimates.

Arcane Research notably excluded stablecoins from the equation, arguing that such asset-pegged currencies do not compete with cryptocurrencies that have a self-sustained intrinsic value.

Such an eye-popping level of market dominance, the researchers state, make it less and less likely that other cryptocurrencies can compete with Bitcoin as a money.

Such robust dominance has implications not only for investors but for those developing payments infrastructure, as well as for projects that rely on the underlying security of a public blockchain.

As reported earlier this month, outspoken Bitcoin advcate and former Wall Street trader Max Keiser recently commented on Bitcoin's surging dominance levels, arguing that "The 2014-2017 era of alts and hard forks is dead.".

Bitcoin's current dominance, as measured by CMC, is at a level not seen since April 2017.