Bitcoin is the dominant digital currency and at least one metric indicates that will remain the case for the foreseeable future. Recently, the Bitcoin Dominance Index has been rising, confirming the dominant perch of the cryptocurrency.
“What this metric does is determine Bitcoin’s market share compared to all other currencies combined. In the early days, the Bitcoin Dominance Index was close to 70% or more,” reports BTC.com. “This figure has begun sliding over the years and even dips below 35% on a regular basis. Especially late last year, the BDI was not looking great for the world’s leading cryptocurrency.”
After bitcoin, the largest cryptocurrencies are Ethereum, Ripple, Bitcoin Cash and Litecoin. Bitcoin futures debuted on the Cboe in December, followed by a launch on the CME. Nasdaq Inc. is still considering entering the bitcoin futures competition.
Market observers previously expected Nasdaq to launch futures on the digital currency this year, perhaps as early as the second quarter. Data suggest bitcoin dominance is rising.
“The latest figure sits at 41.9%, which is rather spectacular,” according to BTC.com. “None of the other top altcoins is mimicking Bitcoin’s gains these days. It is an interesting development, although one that has a precedent. Last year, Bitcoin dominated most discussions until altcoins started making their mark. It is possible 2018 will bring us more of the same.”
Perhaps not surprisingly, it looks bitcoin will remain the dominant digital currency, at least according to the BDI.
“For the time being, the Bitcoin Dominance Index will probably continue to rise. Ethereum is stuck in sideways trading momentum, as are Bitcoin Cash, XRP, NEO, and a few others,” notes BTC.com. “Whether or not we will see more ‘big gains’ for Bitcoin, remains to be seen. Right now it is the best currency worth keeping an eye on.”
For more information on the cryptocurrency, visit our Bitcoin category.