Long-Term Bitcoin Dominance Index is on a Decline

Willy Woo, a highly regarded cryptocurrency analyst and the founder of WooBull.com, believes the bitcoin dominance index will continue to decline in the long-term.

Measuring Long-Term Dominance

The bitcoin dominance index is a popular indicator that is used by analysts to measure the dominance of bitcoin over the cryptocurrency market, relative to other cryptocurrencies. Since the beginning of January, the dominance index of bitcoin has decreased from over 90 percent to 50 percent, due the emergence and rapid growth rate of alternative cryptocurrencies like Ethereum, Bitcoin Cash, Litecoin, and Monero.

However, Woo believes the decline in the bitcoin dominance index is a healthy long-term trend for the cryptocurrency market, as it will strengthen and mature the tokenized economy created by newly developed cryptocurrencies.

Several analysts in the cryptocurrency space such as WhalePanda have criticized the misinterpretation of the bitcoin dominance index. In a column, WhalePanda emphasized that bitcoin cannot be compared to other crypto-tokes or assets in the space. Although some may resemble the former, they are fundamentally different to bitcoin and do not often operate as currencies…

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