Market dominance refers to the percentage an asset contributes when the total worth of its industry is summed up. Bitcoin is the largest coin in the crypto industry as it at one time contributed more than 50% of the market worth. Now according to Tradingview, the coin market dominance is 40%. What could be responsible?
In 2014, BTC made up 99% of the global cryptocurrency market cap. Notably, there was barely more than 100 coins with bitcoin gaining more traction at the time. As new coins emerged, the crypto market expanded, resulting in the king coin losing its dominance.
The first time BTC dominance (BTC.D) slipped below 90 was in 2017. One notable reason is that for the first time since bitcoin creation, more than 1,000 coins were introduced into the market. After this expansion, the king coin could not climb as high as 90%. BTC.D slipped to its lowest since bitcoin became a tradable asset in 2018 as its dominance dipped as low as 35. This was a result of price swings.
The largest coin by market cap has notably increased in value per unit since 2013. Statistics show that from 2013 to the time of writing, BTC has gained more than 69,000% and 100% last year. These increases are not enough to keep up with the growing industry and as a result it dominance dwindled.
BTC is arguably the most expensive coin in the top 100. Nonetheless, the circulating supply is one of the lowest- which translates to the fact that coins with more supply will have added edge over it.
The crypto industry is still developing and more coins are introduced into the market. For example, more than 6,000 have been created over the past 52 weeks according to Statista. With the rapid growth of the crypto market, BTC.D will continue to dip but may continue to have the largest market capitalisation.