Jul 02, · Data from CoinMarketCap shows Bitcoin dominance below 70 percent but in reality, the number could be a lot higher. Unlimited Altcoin Token Supply Makes Market Cap a Meaningless Metric In a report by BTSE Academy, a free Bitcoin learning platform, there are better ways to get Bitcoin’s dominance apart from. Even after Bitcoin has lost its undisputed dominance, it remains the largest cryptocurrency, with a market capitalization that fluctuated between $$ billion in , owing in large part to the ubiquitousness of platforms that provide use-cases for BTC: wallets, exchanges, payment services, online games and more. Bitcoin Market Dominance Has Long Been over 60%. Presenting new figures on social media August 6, Avichal Garg, who now runs cryptocurrency asset management firm Electric Capital, said standard methods for measuring Bitcoin’s dominance were flawed.. Resources which compute market cap, specifically CoinMarketCap, draw on thousands of cryptocurrencies, including those with no liquidity .
Bitcoin dominance coinmarketcapWhile XRP's Market Dominance Crashes, Bitcoin's Surges - Decrypt
When Thorbjornsen multiplied the volume by the market cap Volume-Weighted Cap , he found a much higher correlation. This fits the Pareto distribution hypothesis originally suggested. But in the future, when talking about true market dominance, it would probably be wise to consider the volume-weighted cap as a more accurate measure. Particularly when the liquidity and volume of some altcoins are almost non-existent. Does this new way to measure market dominance paint a more accurate picture?
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Nick Chong 2 months ago. Yashu Gola 3 months ago. Yashu Gola 4 months ago. I accept I decline. Someone might respond with a fake link or recommend a bad exchange.
In most cases, Coinmarketcap is the safest place to get the answer. You can use Coinmarketcap to avoid scams and phishing schemes. Coinmarketcap lists the links to the official project website, the official forum post, and other crucial information. A phishing website might appear first when you Google a major exchange or cryptocurrency, for example.
As far as we can tell, Coinmarketcap has never exposed users to fake links, nor has the website ever been hacked. You can trust the links on Coinmarketcap. Coinmarketcap lets you create a watchlist to track different coins. Interested in buying a coin? Add it to your watchlist. Personally, I use the watchlist to easily keep track of my portfolio.
You can check your portfolio at a glance to see how your coins performed. Coinmarketcap lets you see the biggest gainers and losers in the market based on their recent movements.
Want to catch a coin before it really takes off? Sometimes, this is the sign of a pump and dump scheme on an obscure coin. If you see a coin at the top of the gainers list with significant volume, then it may be worth taking a closer look.
You can check the biggest gainers and losers in a 1h, 24h, or 7d period. With fiat currencies, you can usually type an exchange rate into Google and get instant exchange rate information. Thankfully, Coinmarketcap has a currency converter that lets you easily convert any cryptocurrency to a fiat currency or other cryptocurrency. You can find the Coinmarketcap currency conversion tool here. Coinmarketcap has a list of upcoming cryptocurrency events and conferences.
You can view the Coinmarketcap list of upcoming crypto events here. All types of people go to crypto events, including members of the crypto news media, employees of blockchain startups, entrepreneurs, CEOs, programmers, you name it!
Even ordinary cryptocurrency users will attend crypto events. Consider checking the Coinmarketcap list and attending an event near you. You can always use the Coinmarketcap chart to find price information for a token. The Coinmarketcap Historical Data section, however, works great for finding the price of a coin or the market cap and trading volume on any specific date.
Want to see what the front page of Coinmarketcap looked like 5 years ago? Namecoin, Peercoin, and Novacoin rounded out the top five list. Only 14 coins are listed on Coinmarketcap on that date. The API comes with plenty of documentation and support, making it easy to integrate into your setup.
You can use the Coinmarketcap API to backtest trading strategies, for example. You can also use the API to pull market data or check historical prices. The Coinmarketcap API is available for free by default. The Coinmarketcap blog is updated just 5 or 6 times per year. Coinmarketcap will often go months without uploading a new blog post. The edition of the post shared interesting numbers from the last year of crypto, including the rise and fall of crypto in and the dramatic turns of major cryptocurrencies.
Coinmarketcap uses the UTC time zone for all data unless otherwise specified. Some cryptocurrencies have a question mark displayed under supply or market cap. In this case, Coinmarketcap is unsure about specific details about a blockchain project.
Coinmarketcap has not independently verified the circulating supply and market cap for a cryptocurrency, for example. This is particularly common for smaller blockchain projects.
Who Owns Coinmarketcap? Coinmarketcap was founded in to track cryptocurrency prices. The company is officially headquartered in Dover, Delaware. Coinmarketcap is an independent, privately-owned company. Ultimately, Coinmarketcap continues to be one of the most influential websites in the crypto community today. Using the tips above, you can get the most from Coinmarketcap. Cryptocurrencies likewise have market caps, a measure of the current value and size of a particular cryptocurrency. If a coin or token has a relatively high market cap, it is naturally bigger than other altcoins in the market.
As an illustration, bitcoin is the largest cryptocurrency at the moment, based on its market capitalization. Calculating market cap is relatively simple, and is determined by multiplying the spot or current trading price with the total circulating supply. Rounding up to simplify this example, it can be said that there are 18 million bitcoins in circulation.
In addition, bitcoin has a market dominance sitting at around 40 percent. The market price of an altcoin refers to its price according to current market rates, seen on various exchanges. Complicating things slightly is that different exchanges peg different prices on bitcoin. Different trading pairs will also impact price, as does the simple matter of where in the world the country snapshot price is taken. This happens because of differences in supply and demand, the fundamental dynamic at play when any asset is traded, digital assets included.
This is simply the average of all prices, collected across different exchanges around the world at that moment in time. The circulating supply of any currency refers to the number of coins in global circulation. Circulating supply is different to the total supply, especially with cryptocurrency.
At the time of writing, there are 17,, bitcoins in circulation. New bitcoin will be generated while mining continues, until the last coin is released to total 21 million. Many altcoins come pre-mined, which means that the full supply of tokens is available to the system at the outset.
In the majority of new cases, this is the model employed, and these altcoins arrive with a total supply equivalent to their circulating supply. Altcoins priced in cents attract those who hope to see it rise massively in value over the short term.
There is, however, another critical factor to contemplate when assessing any digital currency, and that is its circulating supply.
It remains important to look at market cap and aspects like circulating supply — as opposed to just price — in order to legitimately evaluate a cryptocurrency. Two metrics are important when looking at market capitalization in the cryptocurrency market. The first would be the market capitalization of each cryptocurrency.
This metric deals with individual digital coin caps, and with the maturation of the cryptosphere, sites like CoinMarketCap are a click away and detail all current token caps worth noting.
Users wanting a big picture of the overall market would look at the second industry market capitalization metric. Here the total market capitalization of the cryptocurrency industry is gauged. Total market cap indicates the value of the whole cryptocurrency market. With thousands of cryptocurrency tokens now afloat, the total market cap is that of all existing altcoins.
Financial theory typically posits that the bigger an altcoin, the slower will be its subsequent growth rate. This is based on legacy blue chip analysis, and not always appropriate in the world of digital coins. Similar to theories punted by penny cap investors, a newly minted altcoin should find it far easier to triple or more in price as opposed to a market leader like bitcoin.
This has to be traded off against the equally real prospect of a new coin not experiencing uptake and falling in price shortly after release.
Hence, while bitcoin has time and huge global favor on its side, it cannot hope for a novelty window that jumps its price dramatically anymore. On the other hand, a new crypto token might be able to rapidly gain in value, yet it has its novelty and market competition to deal with, and therefore there are no guarantees either.
Lower market cap coins are also open to abuse by traders and especially whales large-scale investors. There is no history nor many case studies that afford the coin respectability among global investors. A bugbear of regulators the world over, this kind of market manipulation is symptomatic of the problems legislators seek to address, as these practices are dark in legacy investing too. It follows logically that such attempts directed at bitcoin would be useless, as the project has a much higher value and trading volume.