Bitcoin (BTC) has been a dominant figure in the digital currency market since its inception in 2009. Despite its unpredictable nature, the crypto remains a force to reckon with in the midst of its recent highs and lows.
Bitcoin's influence covers almost 70 percent, increasing from 31 percent since January 2019. At least, that's what CoinMarketCap said. A new report, however, by Arcane Research points to a more convincing value near the 90 percent mark. Forbes, in its August 22 report, said Bitcoin dominates over 90 percent of all cryptocurrencies.
According to crypto analysts, "market dominance" refers to a virtual currency's market capitalization as a percentage of the total cryptocurrency market cap. This metric is applied to show where the money actually goes in the bitcoin system.
At the Arcane Research, analysts studied how the dominance of the most popular crypto was adjusted for liquidity. Arcane Research said that liquidity must be taken into consideration in order to accurately measure the crypto's dominance, as market capitalization is gauged in terms of the digital asset's weighted volume.
Researchers have also undertaken two similar analyses, one based on studies by CoinMarketCap, and another by Bitwise Asset Management limited to 10 bitcoin exchanges. However, the analyses did not include stablecoins, saying that these do not rival other virtual assets in terms of market cap.
Analyst Bendik Norhiem of Arcane Research concluded the findings of the study pointing out that Bitcoin is keeping its ranking on top based on daily figures and it is very unlikely that other cryptocurrency could compete as money.
Market observers also agreed that because of bitcoin's growing trade value, its lesser counterparts have little chance of making their mark in the competition. On the other hand, such a strong grip of the market is not only crucial for traders, but also for investors who create payment systems and other infrastructure based on Blockchain technology.
Blockchain Capital partner Spencer Bogart believes that bitcoin's price could spike and have more value than it is today, suggesting at a price pattern that occurred in 2017. As Bitcoin's market price experiences difficulty, it is simply indicative of its success and volatility.
As more and more research indicates that Bitcoin is well-entrenched to emerge as the money of the future, Spencer thinks that the crypto will shift towards rising as a safe-haven asset in the coming years.
