A new report suggests that the market dominance of bitcoin among all cryptocurrencies could be as high as 90%. Bitcoin currently has a market capitalization of $180 billion as compared to Ethereum’s $20 billion, Litecoin’s $4.5 billion, and $11 billion for XRP. Bendik Norheim Schei, an analyst at Arcane Research who conducted the study said that to calculate correct market capitalization liquidity must be considered.
According to Coinmarketcap, bitcoin has a market dominance of about 70%, but Norheim Sche argued that calculating market capitalization without considering liquidity is meaningless. Arcane Research conducted two parallel research to find the real market cap of bitcoin. One research was done by taking data from 10 different crypto exchanges and one from data collected by Coinmarketcap. The study found bitcoin’s market dominance to 20% higher than other estimates.
Researchers believe this much market dominance would make other cryptocurrencies to compete with bitcoin very challenging. Norheim Sche said that it is important for companies who are building payment services and other solution using the public blockchain to understand market dominance.
However, this data does not necessarily imply that other cryptocurrencies like Ethereum, Litecoin, and Ripple are of less value. Norheim Sche said that any quantitative study is most likely to overlook the important qualitative differences.