Story by: Billy Bambrough
Bitcoin’s dominance, a measure of bitcoin’s value compared to the wider cryptocurrency market, is hovering around 70% after climbing this year, according to CoinMarkCap and most traditional measures—a level not seen since April 2017.
The bitcoin price has been treading water over recent monthsafter surging higher earlier this year as many bitcoin rivals, including ethereum, litecoin and Ripple’s XRP, struggled to make similar gains.
However, the market may be even more weighted towards bitcoin than previously thought, with shock research suggesting bitcoin’s real dominance may be above 90%.
Researchers found that if bitcoin’s dominance is adjusted for liquidity by calculating the volume-weighted market capitalization it soars to over 90%, reducing the rest of the cryptocurrecy market, including major tokens ethereum, Ripple’s XRP and litecoin, to a combined less than 10%—and making their ultimate success more unlikely.
“Every day bitcoin stays ahead, it becomes less likely that any other cryptocurrency can compete as a money,” warned Bendik Norheim Schei, an analyst at Arcane Research, who carried out the study.
“That is important to understand not only for investors and those building out payment infrastructure, but also those building out solutions leveraging the security of a public blockchain.”
Bitcoin currently has a market capitalization of $180 billion, compared to ethereum’s $20 billion, litecoin’s $4.5 billion, and $11 billion for Ripple’s XRP.
Original story: https://tinyurl.com/y4x9gq77by