Glossary

Bitcoin Dominance

Bitcoin's share of the total cryptocurrency market capitalization, used as a measure of Bitcoin's relative strength in the market.

What is Bitcoin Dominance?

Bitcoin's share of the total cryptocurrency market capitalization, used as a measure of Bitcoin's relative strength in the market. Lygos focuses exclusively on Bitcoin as collateral, the most liquid, most widely held, and most institutionally adopted cryptocurrency. Bitcoin's dominant market position makes it the ideal lending collateral: deep liquidity ensures fair price discovery, and broad institutional adoption provides confidence in its long-term viability as a reserve asset.

Full Definition

Bitcoin dominance refers to Bitcoin's market capitalization as a percentage of the total cryptocurrency market cap. When Bitcoin dominance is high (e.g., 60%+), it suggests the market values Bitcoin more relative to altcoins. When dominance falls, it often indicates an 'altcoin season' where capital flows into other cryptocurrencies. For Bitcoin-backed lending, dominance trends matter because they reflect institutional confidence in Bitcoin as a reserve asset and collateral. Higher dominance generally correlates with greater institutional adoption, deeper liquidity, and more stable lending conditions.

How Lygos Uses This

Lygos focuses exclusively on Bitcoin as collateral, the most liquid, most widely held, and most institutionally adopted cryptocurrency. Bitcoin's dominant market position makes it the ideal lending collateral: deep liquidity ensures fair price discovery, and broad institutional adoption provides confidence in its long-term viability as a reserve asset.

Why this matters for borrowers

Understanding Bitcoin Dominance helps you evaluate how different platforms handle your Bitcoin. Not all custody models are equal, and the technical details determine whether your BTC is truly safe.

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