Stop paying attention to shitcoins.

An archive of the article is here. An archive has no paywall, no subscription requirement, and can be easier to read.

Another (needless) post on Bitcoin Dominance:

Bitcoin Dominance #109011

Let's say $COIN (The NASDAQ stock/equity listing for Coinbase) was included in the "bItcoin dominance" chart. Would that make sense? Of course not. But $BNB (which is a token whose value is in large part determined on revenue at Binance) is included in a dominance chart. Same with $LEO (Bitfinex), and others. Make it make sense!!.

Ok, then there's the concept of "market cap" for the "circulating" supply.

Take something like Ripple/XRP, which CoinMarketCap shows a 'fully diluted market cap" about 2X its market cap of its "circulating supply". This reflects future supply that is not yet on the market. As Ripple spends their XRP sitting "as a gift", that increases the supply. So when demand for BTC increases 10%, for instance, the BTC/USD exchange rate might increase 50%. When demand for Ripple/XRP increases 10%, Ripple/XRP may take the opportunity to liquidate some of their "gift", and the XRP/USD exchange rate may not increase anywhere near to the same degree as the BTC/USD might, or it could fall even. Is "mark to market" accounting for even the "circulating" XRP sufficient? Think of what happened to the value of FTX's FTT when the supply that wasn't circulating began "circulating" (i.e., dumped). So personally, I consider XRP's upside to be a fraction that of bitcoin's, and thus a comparison of their market cap at today's valuation means very little.

Same for dozens (thousands) of other shitcoins whose circulating supply is (or could be) much higher than the level it is reflected today.

Anyway, CoinDesk (funded by shitcoiner Barry Silbert/DCG) loves to use the Bitcoin dominance metric to promote the relevance of shitcoins:

Bitcoin Dominance Weakens as Altcoins Rally https://www.coindesk.com/markets/2021/11/05/bitcoin-dominance-weakens-as-altcoins-rally/

But here's how to best view the the entire "bitcoin+crypto" market: https://coinmarketcrap.co

Ok, for real this time. Here's how to best (spatially) view the entire "bitcoin+crypto" market: https://coin360.com

And here's a chart only slightly less irrelevant than the "bitcoin dominance" charts:

Adjusted On-Chain Volume (7DMA) https://www.theblock.co/data/on-chain-metrics/comparison-bitcoin-ethereum/adjusted-on-chain-volume-daily

But even that is skewed. Do investors look at how much USDs are transferred to and from speculating on gold mining equities, for example, traded on the NASDAQ versus how much gold trades hands? No. But we try to tease signal from the few metrics available and on-chain value transferred is one of those very imperfect metrics.

(Maxi hat) Coindesk is owned by DCG and you can tell what the incentive is

(neutral hat) possibly, stats include stablecoins and that lowers its %

for me, it changes nothing ... Im a believer in Bitcoin and the reasons for such belief hasnt changed one bit .... such "news" arent event worth considering as "media" companies' model is sensationalism & clickbait ... so they create stuff .... better ignore and look for the truth yourself :)