Understanding Bitcoin dominance

What is Bitcoin dominance?

Bitcoin dominance is Bitcoin’s market capitalization divided by the total market capitalization of the cryptocurrencies included by a data provider, expressed as a percentage.

For a hypothetical total market capitalization of $2 trillion and Bitcoin capitalization of $1 trillion, the ratio is 50%. The same calculation can change when the provider adds assets or changes its supply estimates.

How the calculation works

1. 01
   Calculate Bitcoin capitalization

   Multiply the Bitcoin price by the circulating supply used by the data provider.

2. 02
   Check the denominator

   Review which assets are included in total crypto capitalization, including stablecoins and wrapped assets.

3. 03
   Compare one consistent series

   Use the same provider and methodology for the periods you compare.

Interpret changes in the ratio

Read the ratio alongside the numerator and denominator. Similar dominance changes can arise from different market conditions.

Read historical comparisons carefully

Compare selected dates and events using a consistent series. A pattern in a past period requires testing across other periods before it can support a broader claim.

• Record the provider, dates, and included assets.
• Check whether stablecoin supply or new listings changed total capitalization.
• Compare the separate Bitcoin and total-market series.
• Read the coverage around the period to understand the explanations people gave at the time.

The sentiment archive adds dated coverage context to a historical review.

Use dominance in a market review

A clear review explains what changed in the ratio and what additional evidence could explain it.

1. 01
   Describe the change

   State the percentage-point change and the exact dates.

2. 02
   Inspect both parts

   Review Bitcoin capitalization and total capitalization separately.

3. 03
   Add the context

   Include relevant source reporting and any methodology changes alongside the observation.

Frequently asked questions