The word dominance means superiority. Market dominance is calculated by proportioning the market value of a cryptocurrency to the overall value of the cryptocurrency market.
Anyway, What is Bitcoin Dominance?
Undoubtedly, the most important of the crypto money market, both in terms of being the first and the current market size, is Bitcoin. And Bitcoin dominance rates are 65.08%. We can say that there are currently more than 5 thousand cryptocurrencies and the number of cryptocurrencies is constantly increasing.
In the cryptocurrency market, the total value of digital assets circulating in the market is called the total market value. 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 cryptocurrencies.
The total amount of these crypto investments in the loop is $436 Billion. Undoubtedly, the most important of the crypto money market, both in terms of being the first and the current market size, is Bitcoin. And Bitcoin market dominance is 65.08%.
Why Bitcoin Market Domination Rises?
While the increases in the price of Bitcoin attract more investors, causing the transaction volume to increase, it is one of the factors that increase the market dominance of bitcoin, which is more interested in other cryptocurrencies. The increase in dominance indicates that the inflow of money into bitcoin is increasing.
This can happen in two situations. Bitcoin has been bought with the money that has just entered the market or the transition from altcoins to bitcoin has taken place. In the case of a fall, we can say that the opposite situation occurs. As Bitcoin’s dominance rate increases, there is a decrease in altcoins, and as Bitcoin’s dominance rate decreases, there is an increase in altcoins.
What is Ethereum Dominance?
The market dominance of Ethereum, which can produce new systems and new altcoins with very different software in its system, has a more innovative system than the Bitcoin blockchain system, and whose approval time is quite short since the formation time of a block in its system is 15 seconds on average, has the value of the general value of the crypto money market. is the result obtained by proportioning. 11.62% of the total amount of 436 Billion dollars, which is the total amount of crypto money investments, is Ethereum. In other words, we can say that Ethereum’s dominance is 11.62%.
Why Ethereum Market Domination Rises?
The Ethereum blockchain planned to leave the PoW system in January 2020 and migrate to a less energy-intensive proof-of-stake (PoS) system. In order for 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, staking. 38,693 ETH has been staked so far.
We can say that the continuation and completion of this development may lead to an increase in Ethereum dominance. The increase in dominance indicates an increase in money inflows into Ethereum. Ethereum has been bought with the money that has just entered the market, or a transition to Ethereum from other coins has occurred.
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