Cryptocurrency Q&A
How is bitcoin dominance calculated?
How is bitcoin dominance calculated?
Lorenzo
Tue Jul 16 2024
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5 answers
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Could you elaborate on the methodology used to determine Bitcoin's dominance in the cryptocurrency market? Specifically, I'm interested in understanding how the percentage of Bitcoin's market capitalization is calculated relative to the total market capitalization of all cryptocurrencies. Does it take into account factors such as trading volume, liquidity, or other metrics? Also, how frequently is this dominance metric updated, and what data sources are utilized to ensure accuracy? Thank you for clarifying this important aspect of cryptocurrency analytics.
5 answers
Valentina
Thu Jul 18 2024
As of the writing date (Apr 18, 2023), based on current market data, Bitcoin dominance stands at 45.27%.
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Andrea
Thu Jul 18 2024
Bitcoin dominance serves as a metric to gauge the relative strength of Bitcoin within the entire cryptocurrency market.
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Stefano
Thu Jul 18 2024
This percentage signifies that approximately 45.27% of the total value of all cryptocurrencies is attributed to Bitcoin.
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DaeguDiva
Thu Jul 18 2024
The calculation of Bitcoin dominance involves dividing Bitcoin's market capitalization by the combined market capitalization of all cryptocurrencies.
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BitcoinBaroness
Thu Jul 18 2024
This process results in a percentage value that indicates Bitcoin's share of the overall cryptocurrency market.
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