Well, it is obvious because alts haven't got their altcoin bull run just yet. That is what happens when altcoins suddenly start to go up, remember there are still coins down 70%+ from where they have been. So, in retrospect if you want the dominance to go down then you have to wait for the altcoin run, if bitcoin suddenly stops and finds its peak which it can't break and go any higher even if the price goes down or stays same the altcoins will see new attention.
Remember 2017 peak everyone started to attack each and every single coin trying to double their money, people started to see altcoins like free money where they can double it and all that, that is why if you wait around enough the dominance will fall for sure, bitcoin doesn't even have to go down because altcoins will have their own bull run.
Topic: Why is bitcoin dominance climbing in this bull market? - page 2. (Read 347 times)
I think that a lot of people had expected BTC dominance to go down as we saw the bull market unfold, because in the 2017 bull market we saw a huge dip in this index from 80+% pre-bull market to the sub-40%'s.
So, why is this trending in the opposite direction now?
So, why is this trending in the opposite direction now?
Altcoins need sideways action in BTC to rally. When BTC is "boring" and "stable" especially in a mid/longterm bullish context, money flows into alts as investors seek out more risky investments.
On the flip side, when BTC momentum is very strong in either direction, altcoins suffer. When BTC rallies hard, altcoin holders dump to chase BTC. When BTC dumps hard, altcoin holders panic back to fiat (partly or fully via the alt/BTC markets).
When BTC finally slows down and enters a mid term range, things will start to feel "boring" again. Then you know what time it is.
The split in 2017 from BCH caused the big shift in dominance and also some deliberately tried to elevate the fees I think. It was the perfect storm to alter this % balance away from what it might have been. Add in ETH and its tokens and that was a big weight away from BTC, surprised it was not even more.
Time is not repeating so simply in this case, its different afaik
Time is not repeating so simply in this case, its different afaik
because it is NOT dominance. it is only market cap.
what is market cap? it is multiplication of supply and price.
before 2017 the shitty website that started this "dominance" nonsense only contained about 600-700 altcoins and the sum of all circulating supply was around 1,800,000 million. so "dominance" at this point is calculated with 15 million bitcoin supply divided by 1,800,000 million altcoin supply and it is 90%.
then the 2017 craze began and the ICO shitshow intensified to the point where each day we saw a new shitcoin pop up with billions of supply. by the end of 2017 we had somewhere around 3000 altcoins (400% increase) and the total circulating supply grew to 30,000,000 million (1566% increase).
so "dominance" at this point is calculated using 16 million bitcoin supply divided by 30,000,000 million altcoin supply and it is 30-40%
then in 2018 those shitcoins that were created started dying and every altcoin pump started getting dumped. with each losing at least 90% of their value. today we are only seeing 2250 altcoins from that near 3000 (25% Decrease) and the total circulating supply has shrank down to 12,000,000 million (60% Decrease) as a lot of them died or were delisted.
so "dominance" today is calculated using 17 million bitcoin supply divided by 12,000,000 million altcoin supply and it is 60%
that is why it is not "dominance" it is just a ratio of supplies. not to mention that what coinmarketcap.com is calling "circulating supply" is not really "circulating" it is total supply. if we remove the premines and coins that are not in circulation most altcoins lose about 70% of their market cap specially big coins like ethereum and ripple.
what is market cap? it is multiplication of supply and price.
before 2017 the shitty website that started this "dominance" nonsense only contained about 600-700 altcoins and the sum of all circulating supply was around 1,800,000 million. so "dominance" at this point is calculated with 15 million bitcoin supply divided by 1,800,000 million altcoin supply and it is 90%.
then the 2017 craze began and the ICO shitshow intensified to the point where each day we saw a new shitcoin pop up with billions of supply. by the end of 2017 we had somewhere around 3000 altcoins (400% increase) and the total circulating supply grew to 30,000,000 million (1566% increase).
so "dominance" at this point is calculated using 16 million bitcoin supply divided by 30,000,000 million altcoin supply and it is 30-40%
then in 2018 those shitcoins that were created started dying and every altcoin pump started getting dumped. with each losing at least 90% of their value. today we are only seeing 2250 altcoins from that near 3000 (25% Decrease) and the total circulating supply has shrank down to 12,000,000 million (60% Decrease) as a lot of them died or were delisted.
so "dominance" today is calculated using 17 million bitcoin supply divided by 12,000,000 million altcoin supply and it is 60%
that is why it is not "dominance" it is just a ratio of supplies. not to mention that what coinmarketcap.com is calling "circulating supply" is not really "circulating" it is total supply. if we remove the premines and coins that are not in circulation most altcoins lose about 70% of their market cap specially big coins like ethereum and ripple.
I think that a lot of people had expected BTC dominance to go down as we saw the bull market unfold, because in the 2017 bull market we saw a huge dip in this index from 80+% pre-bull market to the sub-40%'s.
So, why is this trending in the opposite direction now? It pretty much went from 35% to 62% within a year and a half. Historical data and intuition would tell us that as euphoria enters the market, more people will toss their money away towards "penny-tokens".
Could it be attributed to institutional investors, the better fundamentals underlying BTC and the network, or a more mature market? Or is it something else?
So, why is this trending in the opposite direction now? It pretty much went from 35% to 62% within a year and a half. Historical data and intuition would tell us that as euphoria enters the market, more people will toss their money away towards "penny-tokens".
Could it be attributed to institutional investors, the better fundamentals underlying BTC and the network, or a more mature market? Or is it something else?
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