Analysis

A better way of looking at total cryptocurrency market cap

Quick Take

  • Total cryptocurrency market cap is a flawed metric skewed by by hundreds of illiquid projects with overstated market caps
  • By using the top 20 non-ERC20 cryptocurrencies instead of all 2,000+ cryptocurrencies, we get a much more representative metric
  • If the total market cap is adjusted to top 20 market cap, Bitcoin’s dominance is at nearly 59%
  • Because of illiquid projects with overstated market caps, the total cryptocurrency market capitalization is overstated and Bitcoin’s dominance is understated

Let’s face it — total cryptocurrency market capitalization is a vanity metric. And yet it’s brought up and written about all the time. CoinMarketCap, the company that tracks it, defines the metric as a sum of market caps of all cryptocurrencies it lists. And there are currently nearly 2,200 cryptocurrencies listed there.