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What is BTC dominance?
BTC dominance calculates Bitcoin's current share of the global crypto market cap. Short for “market capitalization,” market cap refers to the value that's currently stored in an asset. Typically, people measure market cap in terms of fiat currencies like USD.
In cryptocurrency, people calculate a market cap by multiplying the number of available tokens by the token's current price.
For example, Bitcoin's price is $29,780, with 19.1 million coins in circulation. Here, you’ll multiply $29,780 by 19.1 million to get a market cap of $565 billion.
How is BTC market dominance calculated?
To determine BTC dominance, you need to know Bitcoin’s current market cap and the overall crypto market cap. Most reputable coin price aggregator sites like CoinGecko and CoinMarketCap show this data on their homepage. Once you have these numbers, divide the Bitcoin market cap by the global crypto market cap. This formula will reveal the percentage of cash in the crypto market that's stored in Bitcoin.
For example, Bitcoin’s market cap at the time of writing is $565 billion, and the global crypto market cap is $1.3 Trillion. After dividing $565 billion by $1.3 Trillion , you get 47%. This means that 47% of the global crypto market cap is now in Bitcoin.
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