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.
Bitcoin Dominance Is Actually Above 90%, New Research Suggests
Publié le Aug 22, 2019
by Cointele | Publié le Coinage
Coinage
Mentionné dans cet article
Nouvelles récentes
Voir tout
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.