A former Facebook executive thinks CoinMarketCap is underestimating Bitcoin’s dominance of the crypto market.
Avichal Garg, a managing partner at the crypto investment fund Electric Capital, says the crypto price-tracker is using flawed methodology.
Garg, who previously worked as the director of project management at Facebook and as a project manager at Google, speculates that Bitcoin’s true dominance is closer to 75%. He arrives at the figure by eliminating altcoins that are essentially defunct with zero liquidity.
True BTC market share is probably 75%+ and has likely been 60%+ for a long time.
Coinmarketcap incorrectly calculates dominance using alts that have 0 liquidity. Most (though def not all!) projects are worth 0, which would put BTC dominance at 75%+
— Avichal Garg (Electric Capital) ⚡ (@avichal) August 6, 2019
CoinMarketCap currently has Bitcoin’s dominance at 68.3% of crypto’s total market capitalization – the currency’s highest percentage since 2017.
Percentage of Total Market Cap (Dominance)
However, Messari’s crypto price tracker OnChainFX broadcasts numbers a lot closer to Garg’s estimation, reporting that Bitcoin’s dominance is currently at 71.82%.
The figure supports Bitcoin’s ability to harness its first-mover advantage and continue to grab a sizable amount of the crypto pie, underscoring the message from “Bitcoin maximalists” who believe the leading cryptocurrency will eventually make all other coins irrelevant as the network tackles outstanding issues such as scalability.