Bitcoin dominance measures how much market share Bitcoin has compared to other cryptocurrencies. For example, if BTC has a market capitalization of $500 billion while the total market capitalization of all cryptocurrencies is $1 trillion, Bitcoin dominance is 50%.
Cryptocurrency traders use the Bitcoin dominance chart to get a pulse on the crypto market.
Remember, Bitcoin dominance is not necessarily a good or bad thing. It simply is a data point that can help you understand the overall state of the cryptocurrency ecosystem.
Because Bitcoin is considered one of the ‘safest’ assets in the crypto ecosystem, many analysts believe that a rise in Bitcoin dominance is a sign of increased fear in the marketplace.
