Today we’re tracking the Market Dominance of the two top coins by Market Cap, Bitcoin and Ethereum.
As a quick review, Market Capitalization is the total number of coins multiplied by current price. How much of the Total Market Capitalization (the Crypto Industry as a whole) one coin makes up is the Dominance of that coin (a percent of the Total Market).
Our chart shows the Dominance of BTC (in Blue) and ETH (in Red) with an overlay of a third, golden line.
Looking first at Bitcoin and Ethereum’s Dominance, we see BTC losing dominance but… ETH hasn’t gone up to account for the entire difference. ETH has of course gone up a little, most likely in anticipation of the halvening, and from a little conversion to ETH from BTC. But looking at these two alone brings up a new question: if Bitcoin isn’t losing dominance to Ethereum, then to who?
The Golden Line:
Looking at the rest of the market, we see that interest is flowing not from the biggest coin simply to the second biggest, but to a mix of everything else in general. These are the Alt-Coins.
Our gold line represents the Market Dominance of Bitcoin over Market Dominance of both ETH and many smaller Alt-Coins. It is worth noting, however, that what we are excluding in this golden line is most DeFi and large L1 projects because they tend to move with ETH anyways.
This ratio, then, means that as BTC is losing dominance, no single coin (like ETH) is taking over, but that everyone else is getting a piece of the pie.
And, with the latest Total Market Capitalization rallying above the $1 Trillion mark, that means everyone is getting a bigger piece of a bigger pie! Yum!
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