Bitcoin Dominance is a metric that shows the relative market share of Bitcoin compared to all other cryptocurrencies combined. It is calculated by dividing the market capitalization of Bitcoin by the total market capitalization of the entire cryptocurrency market.
For example, if the total market capitalization of all cryptocurrencies is $100 billion and the market capitalization of Bitcoin is $60 billion, the Bitcoin Dominance would be 60%. This means that Bitcoin holds 60% of the total value of all cryptocurrencies in the market.
Bitcoin Dominance is often used by investors and analysts to understand the distribution of value within the cryptocurrency market. A higher Bitcoin Dominance indicates that Bitcoin is more dominant and influential in the market, while a lower dominance suggests a more diverse market with a greater variety of cryptocurrencies experiencing growth.
Overall, Bitcoin Dominance provides insight into the market dynamics and helps investors make informed decisions based on the relative strength of Bitcoin compared to other cryptocurrencies.
