Blockchain and Cryptocurrency Advanced - Dominance in Cryptocurrency and Altcoin Season
What is Dominance in Cryptocurrency?
Dominance is one of the popular terms in the world of cryptocurrency. Dominance in cryptocurrency is basically the ratio of a particular cryptocurrency asset market capitalization to the rest of the existing cryptocurrency asset market. At the moment, the only cryptocurrency that is associated with cryptocurrency dominance is bitcoin because it is without a doubt the largest cryptocurrency in existence.
For instance, if the total cryptocurrency market has a market capitalization of 1 trillion and a certain cryptocurrency has a market capitalization of 500 billion, then that cryptocurrency has a 50% dominance because its market capitalization is half of the total market capitalization of other existing cryptocurrencies. With this, it becomes easier to understand what bitcoin dominance is all about.
Bitcoin dominance
Bitcoin dominance is basically the ratio of bitcoin marketcap compared to the marketcap of the rest of the existing cryptocurrencies. It is the dominance of bitcoin above the total marketcap of all cryptocurrencies. Bitcoin is such a dominant and powerful cryptocurrency that is has effect on other cryptocurrencies. When there is a rise in the dominance of bitcoin, altcoins most likely loses its value against bitcoin. When there is a fall in the dominance of bitcoin, altcoins most likely gains its value against bitcoin.
What is the Altcoin Season?
In the cryptocurrency world, altseason or altcoin season is basically a period of time where altcoins are winning. In other words, altcoin season is a time where bitcoin loses some dominance against the altcoins in the market. During this period, prices of altcoins are on the rise and investors begin to pull out some bitcoins to invest in altcoins. A big example of what altcoin season looks like is what we are in at the moment.
The cryprocurrency space is currently in altcoin season, that is why we are seeing a lot of projects making huge gains. The meme coins are the ones that have taken the limelight for now, with a lot of meme coins making incredible return of investment.
