Bitcoin's Market Dominance Is of Over 90% When Measured by Liquidity, Research Suggests

Neil Dennis

Simple analysis of the cryptocurrency market may be vastly underestimating the dominance of bitcoin, according to recent research by Arcane Crypto and reported on its Kryptografen blog.

By taking the simple measures of bitcoin market capitalization - currently $181.8 billion - and the total market cap of all cryptocurrencies - now $264.9 billion - bitcoin would appear to have more than two-thirds (68.6%) of the cryptocurrency market share.

While high valuation is not an irrelevant measure of market dominance, Arcane believes that it's meaningless to look at valuation without considering liquidity - and bitcoin also enjoys a massive share of the cryptoasset market's liquidity. The researchers say:

Using a simple measure of liquidity - trading volume - to adjust the relative market capitalization, we get a more meaningful measure of the relative strength of the different coins and tokens.

Excluding stablecoins, which the researchers don't regard as "true" cryptocurrencies, and adjusting for liquidity by calculating volume-weighted market capitalization pushes bitcoin's market dominance beyond 90%.

Money of the Internet

Bitcoin is, therefore, best positioned to become the currency of the internet, the Arcane researchers say, despite a number of highly-successful niche projects. They conclude:

Every day bitcoin stays ahead, it becomes less likely that any other cryptocurrency can compete as a money. That is important to understand not only for investors and those building out payment infrastructure, but also those building out solutions leveraging the security of a public blockchain.

Crypto Scammers Responsible for $24 Million in Bitcoin Theft Through First Half of 2020: Report

Michael LaVere
  • New Whale Alert report shows crypto scammers have raked in $24 million in bitcoin through the first six months of 2020.
  • One scammer leveraged YouTube advertising to steal $130k in BTC per day. 

Crypto monitoring service Whale Alert has published a report showing that crypto scammers are responsible for $24 million in bitcoin theft through the first half of the year, including the exploitation of YouTube advertising. 

According to the report “Chasing Crypto Criminals” published July 10, cyber-thieves are finding easy prey in the form of bitcoin and other crypto-asset investors. Whale Alert summarized its exhaustive reviews of hundreds of websites and thousands of reports of theft as “crypto crime pays. A lot.” 

Whale Alert claimed there was little risk involved for crypto-based criminals, despite the massive economic impact being imposed on victims. The report confirmed at least $38 million in bitcoin alone being stolen via scams over the past four years, excluding the use of Ponzi schemes. 

The report reads, 

Some of the most successful scams made over $130,000 in a single day with nothing more than a one page website, a bitcoin address and a decent amount of YouTube advertising.

Whale Alert outlined another scam which brought in $1.5 million over six months through promoting a fake cryptocurrency exchange. The report claims the advertisement took victims to an “amateurish website riddled with spelling errors,” before tricking users into depositing their funds. 

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