BTC News: Bitcoin’s Crypto Market Dominance is More Than 80%, Suggests New Research

Bitcoin’s dominance in the cryptocurrency and digital asset market has been questioned on numerous occasions. Several people even commented that ‘Bitcoin is dead,’ with the advent of the bear market. Nonetheless, as per recent research by John-Paul Thorbjornsen, Bitcoin is still going unassailable with a market ascendancy of more than eighty percent. It is to be noted that the researcher reached on the figure by taking Bitcoin’s liquidity into account.

Taking a look at the above graph, it can be clearly said that Bitcoin is much more dominant than Ethereum and other coins when it comes to liquidity. Furthermore, John Paul stated in his research,

“It is clear that Bitcoin is the dominant currency when taking liquidity into account. In terms of share, it is consistently over 80% and trending up. In fact, just taking into account the top 5 coins, Bitcoin (the 20%) captures over 85% of the market — thus it is a Pareto distribution, and actually much stronger. This is the only testament to how strong the Schelling Point around Bitcoin is.”

Moreover, the aforementioned research even claimed that CoinMarketCap’s market dominance charts are imperfect because they do not factor in liquidity. The researcher also commented on the incorrect ’Fifty-five percent dominance’ tag quoted by luminaries in the crypto domain. These luminaries also include Ethereum cofounder, Vitalik Buterin. The comment in question was,

“Bitcoin was, for example, the first cryptocurrency and originally…it had 100 percent of the market share. Then it went to 90 and now it is at 55.”

As per the research, the liquidity of Bitcoin must be calculated as a metric and therefore, it was deduced that they were supposed to be multiplied together to form another metric called Volume-Weighted Cap. Interestingly, this is the factor that suggests Bitcoin’s overwhelming supremacy over other cryptocurrencies in the market.

While Bitcoin’s dominance in terms of market share is postulated by the research, the cryptocurrency also received another good news this week when it was found that BTC’s hash rate had reached a four-month high. Furthermore, sources showed that the hash rate was clocked at fifty-two quintillion, while the last peak was in November 2018 when the hash rate recorded was fifty-four quintillion. It is to be noted that the greatest Bitcoin hash rate ever recorded was in August 2018, when it skyrocketed to a record 62 quintillion.

What do you think about the methodology used in the aforementioned researched? Do let us know in the comments below.