Welcome, welcome to One Minute Crypto! I'm your host, Chronos, and today we are going to look at the "Bitcoin Dominance" chart over the past years This is the percentage of the total cryptocurrency market cap that comes from the value of bitcoin
Basically, how dominant is bitcoin over other cryptocurrencies? This chart is available at the popular site https://coinmarketcapcom — just click "BTC Dominance" at the top So, in the early history of bitcoin, it was extremely dominant, representing well over 80% of the total value of all crypto But something shocking happened in the year 2017, as bitcoin dominance fell off a cliff twice, once at the start of the year, and again at the end Looking back at this, I see three causes of this crash: first, this was the season of the ICO craze, where everybody was launching initial coin offerings with inflated market caps to compete with bitcoin
Secondly, this was the rise of Ethereum specifically, as the price of Ether shot up from below $1 to more than $1000 at its peak At one point, Ethereum alone represented almost 1/3 of the entire crypto market And finally, this was the first time that bitcoin really ran into its maximum block size limit, which caused transaction fees on the network to shoot up, pushing users to other blockchains But ever since the start of 2018, bitcoin's dominance has been on the rise This surprised me, because I thought that bitcoin's limited transaction capacity was going to keep altcoins ahead
But even though we've seen fantastic innovation coming from the altcoin space, Bitcoin has more than kept up with its growth, doubling its dominance from 34% of the market to 68% today So now, with bitcoin sitting at just over 2/3 of the entire market, I want to ask: where do you think this will go next? Post below I'm Chronos Thanks for watching!
