Klever Insight: Bitcoin Dominance
Bitcoin Dominance of the total crypto market is a great indicator to understand the movement of the altcoin market.
Bitcoin Dominance of the total crypto market is a great indicator to understand the movement of the altcoin market, but focusing more on what we can jointly do as a crypto industry is what truly matters.
Bitcoin dominance is an essential metric used to indicate how much of the total market cap of all cryptocurrencies is currently held in Bitcoin.
It’s a useful indicator to understand BTC’s value in relation to the broader crypto market.
When Bitcoin dominance is high, altcoins are often devalued.
When Bitcoin dominance is at relatively low levels, altcoins usually have ground to flourish and increase in both value and market cap.
Currently, the altcoin market makes up more than half of the entire total crypto market cap, as Bitcoin dominance has fallen from a peak of 70% in the beginning of 2021, all the way to 45% today.
But if we zoom out a bit and look at the total market cap of all cryptocurrencies, including Bitcoin and altcoins, in relation to the legacy finance world, it currently stands above an incredible $2.4 trillion dollars, which is essentially the identical market cap of Apple that happens to be the most valuable legacy company in the world.
So if we put more energy to grow as a crypto industry through cooperation rather than competition, and focus more on what unites us rather than what sets us apart, such as decentralization, transparency and immutability, we can continue to grow both Bitcoin and the altcoin market to new heights and usher in a new paradigm where individual freedom of money becomes an undisputed fact of life.