According to CoinMarketCap and most traditional data measurement tools, the market share of Bitcoin (measuring the value of Bitcoin relative to the entire cryptocurrency market) is now around 70% after this year's climb – this is from 2017 4 The latest record since the month.
Bitcoin prices have been in place for the last few months after they started to rise earlier this year. At the same time, many of the competing currencies, including Ethereum, Litecoin and Ripple, are unlikely to achieve similar gains.
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However, Bitcoin may be more important to the cryptocurrency market than previously thought. A study shows that Bitcoin's real market share may be more than 90%.
The researchers found that if the proportion of market transactions is calculated, Bitcoin will dominate the market by more than 90%, and the volume of other cryptocurrencies will add up to less than 10% – which makes their success It’s hard to add.
Arcane Research analyst Bendik Norheim Schei said:
“Every bit ahead of Bitcoin, the likelihood of other cryptocurrencies competing with it will decrease.”
“It’s important to understand this, not only for investors and those who build payment infrastructure, but also for those who build solutions using the security of public blockchains.”
As of press time, the market value of Bitcoin was $178.4 billion, while the market value of Ethereum was $20 billion, the Litecoin was $4.5 billion, and Ruibo was $11.3 billion.
However, Schei believes that it does not make sense to consider the market value calculated from liquidity.
“For example, people can easily create 1 billion cryptocurrencies through pre-excavation. They can set the price of this new currency at $3. In this way, the market value will reach $3 billion, according to current estimates. Value calculation, which will represent 1% of the market share and cause the total market value of the encrypted goods to expand."
“The problem is that this calculation does not take into account liquidity. A coin can sell for $3, but if you want to sell 1 million? If you don't consider liquidity, the market value will become a meaningless measure.”
The researchers conducted two analyses simultaneously—one based on CoinMarketCap data and the other limited to the volume of 10 cryptocurrency exchanges identified by Bitwise (Bitwise previously pointed out that only 10 exchanges in the cryptocurrency field traded) The amount is real) and the stable currency is excluded.
However, the researchers emphasize that these data do not mean that Ethereum, Litecoin and Ripple have no or no value.
“As we all know, it is very difficult to compare different projects for different markets.”
"For cryptocurrencies, one might say that measuring the strength of different currencies incorrectly suggests a competitive relationship between complementary solutions."