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0 sats \ 0 replies \ @sp 23 Sep 2022 \ on: Does Bitcoin Dominance on Coinmarketcap Matter? Why? or Why not? bitcoin
It's a vanity metric. Sheer market cap without daily volumes doesn't tell anything about the asset liquidity. Countless NFT collections pumped this number using washtrading.
Plus, as mentioned by many below, volumes can be artificially pumped by circular dependencies between "lending", "minting" and other shitcoin protocols that artificially move money in and out of exchanges.
The right question is: why dominance should be important?