CryptoCurrency “Dominance”

BTC has also become a rising trend!

Do you think that dominance will flow to alto next time?

So today I will talk about dominance.

People who have wanted to earn the word “dominance chart” or “dominance theory” in cryptocurrency have probably heard of it once!

Today is a commentary on this “dominance”.

Dominance is market share.

For example, the dominance of coin A is derived by the total of coin A ÷ the total value of the cryptocurrency market × 100 =.

In other words, dominance is a measure of how much the market capitalization of a coin is to the market capitalization of the cryptocurrency market.

Generally speaking, dominance refers to “bitcoin dominance”

Let’s calculate the bitcoin dominance at the beginning of June 2019.

First of all, the market capitalization of Bitcoin is approximately 15.155 trillion yen.

Let this number be X.

Next, the market capitalization of the cryptocurrency market is approximately 27,128 billion yen.

Let this number be Y.

If this is applied to the above equation,

“X ÷ Y × 100 = about 55.9%”

It will be.

In other words, bitcoin dominance is about 55.9%.

In the above we calculated the dominance for the purpose of explanation, but doing calculations one by one takes time.

There are a number of sites on the web that show the dominance of altocoin, not just bitcoin, in an easy-to-understand chart, so if you want to check it, refer to that.

For example, “Coin Market Cap” also publishes the dominance chart.

So far, you understood what dominance is.

The next thing I want to think about is how to know dominance is useful.

We will explain three basic ideas.

The representative of what you can see by looking at dominance is whether the money is flowing to bitcoin or altocoin.

When Bitcoin Dominance is rising and Altocoin Dominance is decreasing, you can see that “the money is flowing to Bitcoin”.

On the other hand, when bitcoin dominance is decreasing and altocoin dominance is rising, it means that “the money is flowing to altocoin”.

This allows you to understand the flow of funds in the cryptocurrency market.

Dominance can be checked individually for large market value coins (such as ETH and XRP).

Therefore, by looking at the movement of the dominance, it is possible to know which cryptocurrency funds are flowing.

In other words, it is one indicator to see which cryptographic currency has momentum.

Did you understand about dominance?

I think it is good to remember the dominance.

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