Earlier this week, Forbes reported that Bitcoin’s market dominance was actually more than 90%, despite data on CoinMarketCap suggesting it’s below 70%.
The 90% figure came after examining the volume-weighted market cap of each digital asset, with Bitcoin taking a significant lead.
The formula to calculate market cap on CoinMarketCap is very simple: circulating supply multiplied by price. But this doesn’t factor in inaccessible coins or a lack of liquidity, which means the figures are unreliable.
Isle of Man-based crypto exchange and wallet provider CoinCorner has now backed up Forbes’ research, stating that its data “correlates with the 90% figure”.
https://twitter.com/CoinCorner/status/1164445319473577985
In a press release shared with Coin Rivet, CoinCorner CEO Danny Scott said: “Our view is that rather than compare Bitcoin against altcoins as a flat value, it logically makes sense that the Forbes report has taken liquidity into consideration. Imagine trying to sell $100 million worth of Dogecoin in a very short period of time – the price would evaporate very quickly. Whereas with Bitcoin, it would be a drop in the ocean.
“Altcoins are slowly dying out in respect of interest when compared to Bitcoin – and as always in this industry, it eventually comes back to Bitcoin.”
He added: “At CoinCorner, our numbers also correlate with the 90% Bitcoin dominance figure. Last year, we introduced support for a number of altcoins – Ethereum, Litecoin, and Ripple – alongside our Bitcoin offering as a result of customer demand. This demand for altcoins followed the Bitcoin ‘hype’ in 2017 that saw the price of Bitcoin hit nearly $20,000.
“Looking back on last year, we believe that the demand for altcoins was caused by the sudden increase in initial coin offerings (ICOs) and that the buzz around these pushed many people to experience FOMO, hoping that altcoins/ICOs would be the next Bitcoin.
“We always knew that this would not be the case and our data supports this – 93% of customer transactions on CoinCorner are Bitcoin, leaving the other 3 altcoins to make up the remaining 7%.”
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.