Key TakeawaysBitcoin Dominance is a metric used to define the share of Bitcoin’s market cap compared to the rest of the crypto market.
For example:
Let’s say the value of all Bitcoin is worth $9 trillion while the rest of the crypto market was worth $1 trillion.
That would put Bitcoin Dominance at 90%, because it has that share of the overall crypto market.
Bitcoin Dominance is often used by traders to gage the current state of the crypto market.
When Bitcoin Dominance is high, it usually means that alt coins are low.
When Bitcoin dominance is low, it usually means the market is overheated since alt coins are at higher prices, which is usually the sign of a bubble.
The main critique of the Bitcoin dominance metric is that it includes stable coins. Stablecoins are cryptocurrencies that are pegged to government currencies, like the euro or US dollar.
Since stable coins are not really unique coins but simply digital representation of fiat currencies, many believe that stable coins should be removed from the dominance metric.
The three most popular places to check the Bitcoin Dominance metric are:
BitcoinDominance.com - BitcoinDominance.com, now part of Bitbo, was one of the first sites to publish a Bitcoin Dominance metric excluding stable coins. Not only does BitcoinDominance.com exclude stable coins, but it also excludes coins that don’t intend to act as money, creating a more clear dominance metric.
CoinMarketcap - Coinmarketcap was the first site to ever publish the Bitcoin dominance metric. Coinmarketcap’s chart includes stable coins in the calculation.
Tradingview - Tradingview has great charts that show Bitcoin dominance with and without stable coins.
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