Crypto Academy Week 13 - Homework Post for [@imagen] Market Dominance, Dominance of Bitcoin ( BTC), Strong Falls in Market, Altcoin Season, Safemoon Coin, How a news affect the price of cryptocurrencies?
Hello everyone I hope you will be fine and enjoying good health. As we know that steemit Crypto Academy is going well and the steemit team is teaching people about crypto era by providing the lectures of the professors on weekly basis.
Today I have also attended the lecture of sir @imagen about the Cryptocurrency Market. In that lecture he has taught us about the market dominance in the crypto world.
In the world of cryptocurrency the ups and downs often come because the market is changing all the time. So today we have to discuss this ups and downs in the homework task.
Dominance in Cryptocurrency
The word "dominance" is quite simple and everyone knows about the meaning of it. Dominance means power and influence of one thing to others.
Similarly in the world of Cryptocurrency dominance means the power and influence of one cryptocurrency upon other cryptocurrency. For example Bitcoin is dominating all other cryptocurrencies due to its power and influence upon other cryptocurrencies. Because it has high price and everyone is looking at this and want to buy bitcoin.
Dominance in the crypto world has another main and important factor which counts greatly. More the market capitalization has any cryptocurrency more that cryptocurrency has dominance in the market. We can also say that more the volume a cryptocurrency has at a time than other cryptocurrencies more it has dominance in the market. The market is completely brominated by that currency. And the dominant cryptocurrency rule the world in most cases.
Let's have a look at the dominance of the bitcoin in the world if Cryptocurrency. Bitcoin was introduced in 2009 and it was the first cryptocurrency in the whole world. As it was the first cryptocurrency and at that time there were no any other cryptocurrencies so the people have only chance to invest in the bitcoin. So at that the me the dominance of the bitcoin was 100% but after that me to time new cryptocurrencies were also introduced such as LTC, ETH and so on. When new cryptocurrencies are introduced then the dominance of other already existing cryptocurrencies is decreased.
As it is the universal rule that when a new cryptocurrency that comes in the market then the dominance of already existing products like that is decreased.
For example: Suppose firstly there was only one centralised social media such as Facebook, at that time it had 100% dominance but when other new centralised social media platforms were introduced its dominance was decreased because the traffic split and was divided.
Similarly in the crypto market dominance fluctuates due to the involvement of newly introduced cryptocurrencies. At present a lot of cryptocurrencies are circulating and are being introduced so the dominance of other existing cryptocurrencies such as BTC is decreasing. Let suppose the total world wide market capitalization is $1 Trillion and BTC us holding $600 billion while Ethereum is occupying $120 billion and other altcoins are holding $280 billion, then it will be said that Bitcoin has 60% dominance in the total market capitalization, Ethereum has 12% dominance. And other altcoins except these have the dominance of about 28%.
A straightforward thing about the Bitcoin dominance is that when the market capitalization of all coins except BTC increases its dominance decreases.
Here we can see the total market capitalization at the time of about 3:00 pm of 13 May. This value fluctuates all the time but on the whole with the passage of time it increases as we can see the outgoing chart line in the graph. The total market capitalization currently is $2.157 Trillion. But it may fluctuates.
Here you can see the total market capitalization dominance in 1year. The dominance of BTC is highlighted by the blue colour at the top. In the start we can see that the dominance of BTC was huge but in the coming days due to the high demand of the other coins (altcoins) it's dominance decreased. As currently we can observe be that BTC dominance is decreasing and the dominance of altcoins is increasing.
Here you we can see the dominance of BTC in the crypto market. It is the yearly chart and in the start of the year the dominance was little bit high but then decreased. But it went on increasing gradually and reached at all time high of the year at almost 72.50%. And then again it is decreasing and according to the Trading view it is currently residing at 42.94%.
But there is a difference in its dominance at the coinmarketcap. There is a different value as you can see in the graph taken from the coinmarketcap. It is showing 44.38% dominance of BTC over all other coins (altcoins) at the time of writing homework post.
Strong Falls In The Market
Everyone is familiar that crypto market is very volatile and there is no any specific time interval for the market fall and up. But there are some certain conditions through which we can analyze the fall and up in the market but these are again not authentice.
So strong falls in the market have been occured almost 2 times. There are also more falls but they are not string falls so I will explain the two strong (strongest) falls in the crypto market.
1st Strong Fall In The Market
I think everyone can guess what I am going to talk about. I am going to highlight the biggest fall in the crypto market at first. The bearish market started in the start of 2018 in January, and due to this trend many crypto coins looses their value at large scale. As Ethereum started following this trend on 10th of January. It was at the price of $1445 but when it started following downtrend ( bearish) it reached at its lowest price at almost $355.77 on the 1st of April 2018. It lost $1089 within that period of about 4 months.
2nd Strong Fall In The Market
There is another biggest market fall which came after this fall. This fall was the fall of the firstly introduced cryptocurrency (Bitcoin)BTC and it crashed all the crypto market. Because almost all the crypto coins follow the trend of BTC.
It occured on 14th April of 2021, bitcoin started following downtrend from the current price of $64875 and it followed this downtrend upto $50,947 . This downtrend stopped on 17th April of 2021. It lost its $13,841 value in just 4 days.
On the other hand other altcoins especially ETH. It fell down from $2540 to $1942. It was not so much but many people lost their money because they did not hold patience.
What is the Altcoin Season?
First if all u want to explain the term "altcoins". It means all those coins which are different from the bitcoin. So we can say that all the crypto coins except the bitcoin are know as altcoins ( alternative to the bitcoin).
As everything has its own season and there are some requirements for each and every season. Similarly altcoins also have their own wonderful season. As we know that the season of everything starts when there is excess of that thing.
Similarly, in the cryptocurrencies the Altcoin Season starts when the investors invest them or withdraw from them. In this way their price fluctuates and season is started. How to know about Altcoin Season?
There is a scale to understand the Altcoin Season. When the 75% altcoins from the top 50 altcoins perform well than the Bitcoin (BTC) then the season started. This season consists of almost 90 days.
As the requirement is 75% but now it is going on at 86% so we can conclude that it is the Altcoin Season.
Here we can see the chart of Altcoin Season and bitcoin season. We can see that when there is 25% the season is of bitcoin and when it raises up upto 75% then the altcoins season is started.
2 Altcoins in Top 50
At present there are many altcoins in the market. But I am going to explain only two altcoins right now from the top 50 altcoins.
1.Binance Coin (BNB)
Binance Coin (BNB) is the most famous altcoin which was run by the Binance exchange to meet the transaction and trading fees. It was introduced to run binanace exchange more influentially. Now it is ranking at top of the cryptocurrencies. And if you hold BNB on binance exchange then you get 25% off on the trading fees. Some basic information of Binance Coin (BNB) is given below.
According to the Coinmarketcap
| Binance Coin (BNB) | Information |
|---|---|
| Market Rank | #3 |
| Current Price | $580.64 |
| Trading Volume | $6,885,230,358.31 |
| Market Dominance | 3.96% |
| Market Cap | $89,644,027,645.08 |
| Fully Diluted Market Cap | $99,634,732,784.41 |
2.Uniswap Coin (UNI)
Uniswap coin (UNI) is another amazing Altcoin which was introduced by the Uniswap exchange. Almost 1 billion UNI tokens have been produced at present. And 60% of those Uniswap Coin (UN)I tokens are distributed to the existing Uniswap community members, while 40% will be given to the team members. Basic information of Uniswap Coin is given below.
According to the Coinmarketcap
| Uniswap Coin (UNI) | Information |
|---|---|
| Market Rank | #11 |
| Current Price | $38.31 |
| Trading Volume | $1,226,142,757.01 |
| Market Dominance | 0.94% |
| Market Cap | $21,525,903,244.50 |
| Fully Diluted Market Cap | $38,468,643,451.12 |
Influence of relevant news on the price of cryptocurrencies
The relevant news can easily influence the price of the cryptocurrencies in a positive way or in the negative way according to the news. It happens especially when a higher authority or whale announce any news. And this news becomes viral because everyone trust in the whales and people do according to their directions. So in this way price of cryptocurrencies is greatly influenced by the news.
Some such incidents are given below:
1.Donald Trump's announcement that he will not support cryptocurrencies.
Donald trump announced on the twitter that he will not support cryptocurrencies and it happened on Mon, Jul 15, 2019. It was very influential news being the president of the United States of America ( USA) everyone become worried and people lose their interest in the cryptocurrencies. In this way the prices of all the cryptocurrencies fell down. Especially BTC was greatly affected by this news. It lost its 10% price.
2. Elon Musk suspended the use of BTC in purchasing vehicles
Tesla us the vehicle company and its CEO is Elon Musk who said that he will not support BTC to purchase vehicles, because in the mining of the BTC fossil fuels are being used and they are decreasing. This news happened on Wednesday 12 May of 2021. And it affected the price of BTC a lot as before this announcement BTC was at the price of the almost $54,000 and it fell down to almost $48,500 by loosing it's value of about $5500.
Tesla CEO Elon Musk said Wednesday on Twitter that Tesla has "suspended vehicle purchases using bitcoin," out of concern over "rapidly increasing use of fossil fuels for bitcoin mining."
3. Elon Musk announced to launch a satellite funded by dogecoin.
Elon Musk has become a market changer as he has already changed the price fluctuations in the market many times. So this time again Elon Musk has changed the price of dogecoin.
He just announced that he will launch a satellite which will be funded by the dogecoin. In this way the people took a lot if interest in this news and the investors invest their money suddenly in it and the price of dogecoin raised up from $0.599 to $0.721.
Safeemon
- Penny Cryptocurrency: Penny cryptocurrencies are those cryptocurrencies which have the value less than $1 and there are a lot of penny cryptocurrencies. Here I am going to explain about Safemoon.
The SafeMoon Protocol is a community driven, fair launched DeFi Token. Three simple functions
occur during each trade: Reflection, LP Acquisition, and Burn.
Safemoon is a unique Altcoin with unique properties. It was launched on 8 March, 2021 and it is working in the BSC Defi. It has been claimed by the safemoon team that it will reward those users who will hold their token safemoon. As in other tokens people get rewards by trading but the safemoon says that it will reward it's holders.
As safemoon charges 10% fee on every sell and 5% of that fee is given to its holders.
Safemoon team has also announced that they will soon launch the safemoon exchange and there they will provide the opportunity to trade NFTs.
According to the Coinmarketcap
| Safemoon Coin | Information |
|---|---|
| Market Rank | #202 |
| Current Price | $0.00000795 |
| Trading Volume | $125,047,040.29 |
| Market Dominance | 0.21% |
| Market Cap | $4,644,841,546.37 |
| Fully Diluted Market Cap | $7,932,626,926.15 |
| Circulating Supply | 585,536.37B SAFEMOON |
Trading pairs of Safemoon
Safemoon is the newly launched coin but it has different trading pairs such as:
| Trading pairs | Exchange |
|---|---|
| SAFEMOON/USDT | Gate.io |
| SAFEMOON/WBNB | PancakeSwap |
| SAFEMOON/USDT | MXC.COM |
| SAFEMOON/USDT | ZBG |
| SAFEMOON/USDT | Decoin |
| SAFEMOON/WBNB | PancakeSwap (V2) |
| SAFEMOON/BUSD | PancakeSwap (V2) |
| CAKE/SAFEMOON | PancakeSwap (V2) |
| SAFEMOON/BUSD | PancakeSwap |
| SAFEMOON/USDT | BitMart |
These are all the current exchanges with respect to their markets in which Safemoon has been listed and it's trading is going on.
Supported Wallets
Being the new coin it is supporting two wallets at present which are given below:
Price Chart
It is the all time price chart of the safemoon by Coinmarketcap. In the start the price was very low but with the passage of time the price was increasing slowly but suddenly on 19th of April, 2021 it started it uptrend and bullished very much. But then again it stared coming back by following downtrend. And again followed uptrend and so on its price us fluctuating time to time.
CONCLUSION
In conclusion I will say that the market dominance of BTC decreased with the increase in the altcoins (alternative to bitcoin). Because people take interest in the altcoins and invest in them and leave BTC alone and in this way dominance of BTC decreased.
News about the cryptocurrencies by the whales can greatly affect the prices if the cryptocurrencies as it has been happened many times in the world if cryptocurrency.
Altcoins have become essential part of the crypto market and people are taking interest in them and making huge profits.
The penny currencies are also overwhelming other currencies but in most cases these may be scanned and can steal all the money of people. So before investing in these cryptocurrencies careful analysis are necessary we should deeply overlook each and everything about these penny cryptocurrencies.
Cc:- @imagen
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Hola @mohammadfaisal
Gracias por participar en la Academia Cripto de Steemit.
Thank you sir for checking my homework.