What Is the 'Dominance' Metric in the Cryptocurrency Market? ▴ Learn

What Is the ‘Dominance’ Metric in the Cryptocurrency Market?

Cryptocurrency dominance, most commonly Bitcoin Dominance, is a metric that measures the ratio of one cryptocurrency's market capitalization to the total market capitalization of all cryptocurrencies. It is used as an indicator of market sentiment, suggesting whether capital is flowing into the largest asset (higher dominance) or into smaller altcoins (lower dominance).

How Does Bitcoin Dominance Typically Change during a Prolonged Bear Market?

What Alternative Metrics, Such as “Realized Cap Dominance,” Offer a More Nuanced View of the Market?

How Is the Concept of “Total Value Locked” (TVL) Used as a Valuation Metric?

What Are the Primary Limitations of Using Bitcoin Dominance as a Standalone Metric for Investment Decisions?