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Market Cap. of The Big Bad Wolf of Crypto World

A short account of how Bitcoin slowly shed its market dominance

Market dominance is an analysis tool used to measure the percentage of the cryptocurrency market that can be attributed to a specific cryptocurrency. During prolonged market shifts, it can also highlight whether demand for the cryptocurrency is staying above that of the cryptocurrency market average. For example, Bitcoin dominance often declines when altcoins are rising in value, and increases when investors are looking for less volatile crypto assets.

Currently Bitcoin controls 52% of the market with Ethereum at second with almost 11% and XRP with almost 10%. The stark difference in dominance shows who the G.O.A.T. is.

Bitcoin is the oldest player in the game. It was created back in Jan, 2009, when Bitcoin’s pseudonymous creator Satoshi Nakamoto mined the first 50 bitcoins and started the Bitcoin payment network. Since then, Bitcoin has kept it’s own space in the spotlight.

In retrospect, Bitcoin’s performance in the last two years is something out of a thriller plot.

2017, regarding market dominance, was a roller-coaster ride for Bitcoin. On Jan 1, 2017 Bitcoin started with dominance of 87.62% with Ethereum at 4%.

The fall started on March 9 when Ethereum rallied for a bull-run. The reason was the foundation of a group called the Enterprise Ethereum Alliance (EEA) to connect large companies to technology vendors in order to work on projects using the blockchain. It involved JPMorgan, Microsoft and Intel. From then on, the dominance fall goes on until BTC hits the lowest market cap of 37.5% on June 20 when scales begin to tip. BTC never regained the Jan 1, 2017 market cap, ever. The highs and lows keep coming while altcoins keep coming, dividing the dominance sphere more and more. Bitcoin closes the year with 38%, the second lowest of the year.

BTC 2017
Source: CoinMarketCap

This year wasn’t much different either. The lowest point was 13th January with 32.45% while the highest point was seen at 12th September at 57.82%. In August, bitcoin dominance hit 50% for the first time this year and hasn’t crossed below that line again.

BTC 2018
Source: CoinMarketCap

ETF appeals and rejections have played a vital role in the ups and downs for BTC. Markets crashed and gained in days after an ETF application was filed or rejected. Sadly for investors, numerous ETF’s have been rejected by SEC. Winklevoss Twins, ProShares, Direxion and GraniteShares all have lost their proposals. The latest is the VanEck-SolidX proposal that hangs in the balance. Many are still hopeful the SEC will eventually approve a bitcoin ETF.

Will the once glorious king of cryptocurrency reclaim the lost throne? No one knows. Just play along.

Sarim Mehmood

An electrical engineer to be. Sarim is a blockchain & crypto enthusiast and an early investor in ETH and Ethereum based projects. Contact the editor at editor.opinions@blockpublisher.com

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