
Bitcoin Market
While crypto prices are generally going down, ETH is getting a larger slice of a smaller pie. Here’s the main set of indicators we look at (refresher at the end for those who want to review) that got us to this conclusion.
Here’s a brief explanation of each line.
- Meaning of Blue Line – BTC market dominance relative to the rest of the industry. As of Aug. 25, 2022 BTC market dominance is 40.46%.
- Meaning of Red Line – ETH market dominance relative to the rest of the industry. As of Aug. 25, 2022 ETH market dominance is 20.03%.
- Meaning of Yellow Line – BTC is continuing to lose Market Dominance to ETH + Alt-Coins.
Here’s an analysis of all that.
Bitcoin continues to lose Market Dominance, so too does our composite measure of ETH + Alt Dominance. ETH however, is picking up. For the combined dominance of ETH + alt-coins to go down, but for ETH’s individual dominance to increase, means that the Alt-coins are significantly losing Dominance.
Hence, ETH is getting a larger slice of a smaller pie. The other areas of the crypto world are giving up their market share to ETH.
If you found this helpful, Subscribe to The Art of the Bubble’s free newsletter.
Join us on Discord for live chat and daily updates. Find us on Twitter too.
What do these things all mean? A Refresher.
- What is Market Cap?
- Market Cap = price per coin * the total number of coins in circulation. It’s a way of measuring the value of a blockchain project.
- The total market cap = the sum of all blockchain projects together
- What is BTC Dominance?
- Market cap of BTC / Total market cap
- What is ETH Dominance?
- Market cap of ETH / Total market cap
- What is the Alt-Dominance?
- This is a composite measure we developed for this analysis. It = ETH dominance + other alt-coin dominance
- Notably this measure excludes most DeFi and large L1 projects (which tend to move with ETH)
- Why does this matter?
- Market Dominance quantifies a coin’s level of maturity within the overall market. Cryptocurrencies need to gain market share in order to succeed and keep expanding.