Why Bitcoin Might Actually Dominate Over 90% of the Crypto Market

Understanding Bitcoin’s Dominance

Recent analyses have sparked conversations around Bitcoin’s true share of the total cryptocurrency market capitalization. While mainstream data sources have pinned its dominance at about 70%, fresh insights from Arcane Research suggest it could be soaring above 90%!

The Importance of Liquidity

Digging deeper, the key to understanding this higher dominance lies in liquidity. As Arcane Research puts it, “One might be able to sell one token for 3 dollars, but what happens if you want to sell 1 million?” Without considering liquidity, market capitalization becomes a pretty meaningless measure. Imagine trying to sell an ocean’s worth of marbles at a yard sale—good luck with that!

Recalculating the Figures

Using trading volume as a basic measure of liquidity, researchers recalibrated the volume-weighted market capitalization of cryptocurrencies. Their findings revealed a staggering Bitcoin dominance—over 90%! This is about 20% more than traditional estimates.

Two Analyses, One Conclusion

The researchers employed two thorough analyses: one based on data from widely-studied sources and the second limited to exchanges identified by experts for having trustworthy volumes devoid of manipulation. Strikingly, stablecoins were excluded as they don’t compete against coins with intrinsic value.

The Implication for Altcoins

So, what does this dominance mean for altcoins? Well, if Bitcoin holds an overwhelming market presence, the road gets bumpy for other cryptocurrencies. As stated in the report, “liquidity is everything,” and that spells out tough competition for the alternatives. Max Keiser, a vocal Bitcoin supporter, proclaimed the end of the altcoin craze era, suggesting it’s all about Bitcoin now.

“The 2014-2017 era of alts and hard forks is dead,” – Max Keiser

In a landscape where Bitcoin is swiftly approaching 70% of the market share, it seems like altcoins need to rethink their strategies—unless they plan on floating in the wake of Bitcoin’s larger-than-life waves!