Bitcoin dominance rate quickly jumped to 2017 levels

0
83

According to the data of the crypto research company Messari, the dominance rate of Bitcoin reached 2017 levels with a rapid increase.

According to data shared by Ryan Watkins from the crypto research company Messari, Bitcoin regained the dominance rate it reached after the 2017 bull run.

The dominance rate of Bitcoin shows the share of leading crypto money in total market value. This high rate means that investors find Bitcoin more attractive than any other cryptocurrency.

Bitcoin lost its share in the cryptocurrency market to a large extent in January 2018, when altcoins were experiencing major increases. This rate, which was recorded as 74 percent in December, when the price reached almost 20 thousand dollars, was pulled up to 30 percent with the rise of altcoins. Later, Bitcoin got its old share back.

Perhaps more striking is the rate of increase, as the dominance rate rose again to 74 percent. Such a steep rise had not been observed for a long time.

Why is the dominance rate different with CoinMarketCap?
Many market watchers use CoinMarketCap to track the dominance rate. According to CoinMarketCap, this rate is currently at the level of 65 percent. Watkins says this is probably due to differences in how the market value of some of the largest assets such as XRP is calculated.

This increase in the market share of Bitcoin can be attributed to the Bitcoin block reward halving that is now few days left. The expectation that the halfway will create positive changes in the price of Bitcoin prevails. The purchase of this expectation may be seen. With the halfway, the number of Bitcoins produced daily will be cut in half, which means that, in a sense, sales pressure from newly produced Bitcoins will be halved. According to Somagnews Bitcoin halving counter, there are 11 days to Bitcoin block reward halving.

Source link