Bitcoin dominance is the crypto market share of the leading cryptocurrency, Bitcoin, over the rest of the crypto market. The indicator has been fluctuating between a high of almost 96% in November 2013 and a low of 33.4% recorded in January 2018, during the craziest altcoin season.

90% Bitcoin Dominance

When liquidity is considered as well, Bitcoin’s presence appears to be even more dominant at around 90%. Liquidity is the key to receiving the most accurate market capitalization numbers as per the person who conducted the research – Bendik Schei, who explains:

“The main reason is that one could easily create a cryptocurrency with 1 billion pre-mined coins, and do one trade at say three dollars each. This would lead to a total market capitalization of $3 billion, which would represent 1% market dominance with today’s valuations and inflate the total market capitalization. The problem is that the calculation does not take liquidity into account. One might be able to sell one token for three dollars, but what happens if you want to sell 1 million? Without accounting for liquidity, market capitalization becomes a meaningless measure.”

https://kryptografen.com/news/bitcoins-reported-market-dominance-is-approaching-70-but-in-reality-it-is-above-90/ and https://cryptopotato.com/altcoins-real-dominance-is-only-10-of-the-crypto-market-not-30-new-study-reveals/