Bitcoin’s True Market Dominance

Analysing Bitcoin’s true market dominance, taking liquidity into account. A new metric, Volume-Weighted Cap, is derived and shows that Bitcoin has Pareto dominance (>80%) on the market.

CMC’s Market Dominance — a flawed metric

Pareto Distribution

y = 20% ^(log(x)/log(80%))
Pareto Distribution

The Volume Problem

Not a Pareto Distribution
Poor volume correlation

Volume-Weighted Cap

A surprising S curve
High correlation with Power Law
A much better sort for both Volume and MarketCap

Volume-Weighted Market Dominance

Volume-Weighted Market Dominance for Bitcoin is 80% and trending up
Bitcoin (#1) has Pareto Dominance in the Top 5

Bitcoin will be the global reserve currency. #buybitcoin

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