What is BTC dominance?
BTC dominance represents the proportion of Bitcoin’s market capitalization in relation to the total market capitalization of all cryptocurrencies. Market capitalization, commonly known as market cap, signifies the current value stored within an asset. It is typically measured in terms of fiat currencies such as USD.
To calculate market cap in the cryptocurrency realm, one multiplies the number of available tokens by the current price of the token.
For instance, let’s consider Bitcoin’s price at $29,780, with a circulating supply of 19.1 million coins. By multiplying $29,780 by 19.1 million, we obtain a market cap of $565 billion for Bitcoin.
How is BTC market dominance calculated?
To calculate BTC dominance, you will need to obtain the current market capitalization of Bitcoin and the total market capitalization of all cryptocurrencies. Reliable coin price aggregator sites such as CoinGecko and CoinMarketCap commonly display this data on their homepage. Once you have these figures, you can determine BTC dominance by dividing the market cap of Bitcoin by the overall crypto market cap. This calculation reveals the percentage of the total cryptocurrency market value that is attributed to Bitcoin.
For example, let’s consider the current market cap of Bitcoin, which stands at $565 billion, and the global crypto market cap, which is $1.3 trillion. Dividing the market cap of Bitcoin ($565 billion) by the global crypto market cap ($1.3 trillion) yields a result of 0.4346 or approximately 43.46%. This indicates that Bitcoin constitutes about 43.46% of the total global crypto market cap.
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