DeutschBitcoin dominance indicates the importance of Bitcoin measured against the entire crypto market. The Bitcoin Dominance Index was developed as a measurement tool. The data is given as a percentage based on the total market capitalization at a time x.
Bitcoin Dominance Example
Assume that the market capitalization of all cryptocurrencies amounts to 3 trillion US dollars. If the market capitalization of Bitcoin (circulating supply x price/BTC) amounts to 1.5 trillion US dollars, the Bitcoin dominance is 50 percent (1.5 trillion/3 trillion*100). So it is the market share of Bitcoin. The calculation can be transferred analogously to all other cryptocurrencies.
Bitcoin Dominance without Stablecoins
An alternative calculation is done by including only all cryptocurrencies except stablecoins in the total market capitalization. However, this is more of an exception.
