Bitcoin Dominance
What is Dominance?
Dominance; dominance includes the meaning of superiority. Market dominance is calculated by proportioning the market value of a cryptocurrency to the overall value of the cryptocurrency market.
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What is Bitcoin Dominance?
Bitcoin is undoubtedly the most important of the crypto money market, both in terms of being the first and in terms of the current market size. And Bitcoin dominance rates are 65.08%. We can say that there are currently more than 5 thousand cryptocurrencies and the number of crypto coins is constantly increasing. In the cryptocurrency market, the total value of digital assets that are in the loop in the market is called the total market capitalization. Briefly; It is the sum of the asset values of Bitcoin,
Ethereum
, Litecoin, Ripple, Stellar Lumens, Basic Attention Token, Menapay, Bilira, Avalanche and all other crypto coins. The total amount of these crypto investments in the cycle is $ 436 Billion. Bitcoin is undoubtedly the most important of the crypto money market, both in terms of being the first and in terms of the current market size. And Bitcoin market dominance is 65.08%.
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Why Does Bitcoin Market Dominance Rise?
While the increases in the price of Bitcoin attract more investors and cause the transaction volume to increase, however, the fact that it attracts more attention than other crypto coins is one of the factors in the increase of bitcoin’s market dominance. The increase in dominance shows that the inflow of money into bitcoin is increasing. This can happen in two cases. Bitcoin was bought with the new money entering the market or the transition from altcoins to bitcoin took place. If it falls, we can say that the opposite situation is experienced. As the dominance rate of Bitcoin increases, there is a decrease in altcoins, and as the dominance rate of Bitcoin decreases, there is an increase in altcoins.
What is Ethereum Dominance?
Bitcoin, which can produce new systems and new sub-coins with very different software in its system,
It
is the result obtained by proportioning the market dominance of Ethereum, which has a more innovative system than the blockchain system and has a very short confirmation time since the average time to form a block in the system is 15 seconds, to the general value of the crypto money market. Ethereum accounts for 11.62% of the total amount of crypto money investments, $ 436 billion. So we can say that Ethereum’s dominance is 11.62%.
Why Does Ethereum Market Dominance Rise?
The Ethereum blockchain had planned to drop the PoW system in January 2020 to switch to a less-energy-intensive proof-of-stake (PoS) system. In order to make a smooth transition to the ETH 2.0 network, which will use the
Proof Of Stake
(PoS) algorithm, 524 thousand 268 ETH must be sent to the deposit contract, that is, it must be stagged. So far, 38,693 ETH have been staked. We can say that the continuation and completion of this development may cause an increase in Ethereum dominance. The increase in dominance shows that the inflow of money into Ethereum is increasing. Ethereum was bought with the new money entering the market or the transition from other coins to Ethereum was realized.