CRYPTO ACADEMY WEEK 13-HOMEWORK POST FOR [@imagen]||CRYPTOCURRENCY MARKET||

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The Crypto academy classes have really exposed me a lot of ideas and knowledge about cryptocurrency.I am so happy about this learning season.I wish to thank Professor @imagen for this clear lecture.Let me at this point go to the homework proper.

CONCEPT OF DOMINANCE
In the world of Cryptocurrency there exist a term called Market Capitalization.Every coin or token has it own Market Capitalization at every given period.

Dominance in my own understanding is a ratio of the Market Capitalization of a given coin/token to the Market Capitalization of all Cryptocurrencies.For example if the Market Capitalization of Ethereum is $400 million and Total Market Capitalization of all Cryptocurrencies is $1 billion.The Dominance of Ethereum would be the ratio(400,000,000:1,000,000,000) which gives 2:5 then expressing it as a percentage would be (2:5 x100%) gives 40%.Therefore the Dominance of Ethereum from this example is 40%.

When there was only BITCOIN in existence.Its Market Capitalization was 100% because BITCOIN was the only coin at the moment.
However,with the invention of alternative coins(Altcoins),the Dominance of BITCOIN ceased to be 100%.When the Dominance of BITCOIN is higher,it means that the Dominance of the Altcoins will drop.On the other hand,when the Dominance of Altcoins are higher,the Dominance of BITCOIN will drop.

DOMINANCE OF BITCOIN AT THE MOMENT

Bitcoin chart over the past 24 hours

Let's now look at the Market Capitalization,price and Dominance of Bitcoin 👇

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As at the time of making this post the Dominance of BITCOIN stands at 40.6% and the Market Capitalization is $947,297,029,512 at a current price of $50,630.76 when the total market Capitalization of all Cryptocurrencies is $2,334,630,158,633.

TWO TIMES WHEN CRYPTOCURRENCIES HAD A STRONG FALL
There are have been times when the price of cryptocurrencies take a dip.I will mention two moments.

•Case Study One

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Case study one happened in March,2020.That period the price of Bitcoin, Ethereum and a few other Altcoins fell so low that a lot of people including myself sold off our coins at a loss.
That period in March 2020 where the price of cryptocurrencies took a strong fall and led to a huge loss.

Case Study Two

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The second event in which the price of cryptocurrencies had a strong fall happen this year.
This event happened around 23rd,April 2021... leading to a situation where the prices of virtually all the cryptocurrencies went down.

ALTCOIN SEASON
Just like I mentioned earlier Bitcoin had a Dominance of 100% at the point where it was the one and only cryptocurrency.
The other coins that came up after Bitcoin were termed Altcoins.Whenever the Dominance of Bitcoin is low that of Altcoins would be high and vice versa.

By definition an Altcoins season is a period where the Dominance of the Altcoins outways the dominance of Bitcoin.For example if the Dominance of Altcoins is 75% and that of Bitcoin is 25%.In this case we can say that we are in an Altcoins season.Whenever the Dominance of BITCOIN falls and the Dominance of Altcoins rises,them we are in an Altcoins season.

HOW TO SPOT ALTCOINS SEASON
Here are the reasons that indicates an Altcoins season.
•When the Dominance of Bitcoin falls:
Whenever the Dominance Bitcoin goes down and that of the Altcoins rises above it.Then we set set for an Altcoins season.

•When Pennycoins like Dogecoin begins to rise.source

•When there is increased performance of Defi protocols.

•When these coins begin to rise-It is also a pointer for an Altcoin season.**

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DESCRIPTION OF ALTCOINS IN THE TOP 50
For the purpose of this assignment,I will describe three coins in the altcoin top 50 list.

•ETHEREUM
Ethereum is ranked number one in the altcoin coin ranking.It was the second blockchain after Bitcoin.Ethereum was an upgrade to a feature which Bitcoin was lacking(Bitcoin did not run smart contracts).Ethereum was Introduced to enable Smart contracts.
The native currency in the Ethereum blockchain is called Ether(ETH).ETH is used as a digital currency exchange and also to run applications.
FEATURES OF ETHEREUM
•Its native currency is Ether(ETH).

•It is the father of smart contracts.

•Allows creation of Decentralized Applications (DApps).

•Mining a block happens between 12 to 15 seconds.

•DOGECOIN
Dogecoin is an open source cryptocurrency that runs on the blockchain.It was introduced in 2013 is seen as a joke.However in 2021,dogecoin really showed that it was not a joke as the rose so do high.This rise could be attribited to the fact that Elon Musk talked about it earlier this year.

FEATURES OF DOGECOIN
•It is an open open source cryptocurrency.

•It Consensus Algorithm is Proof of Work(PoW).

•It can be traded and used as a form of payment.

•It is based Litecoin technology.

•LITECOIN
Litecoin formed just two year after Bitcoin is an open source cryptocurrency which it's Consensus Algorithm is Proof of Work (PoW).It is similar to Bitcoin as it was at some point called the lite form of Bitcoin.

FEATURES OF LITECOIN
•It runs on the blockchain technology.

•Its mining is four times faster than that of Bitcoin.

•It has earned wide acceptability because of its resemblance with Bitcoin

Advantages of Litecoin
•Less transaction cost.

•Fast and efficient transaction.

•It is easy to buy and sell litecoin

•Since it's transaction rate is so fast- then hacking would be minimized.

ALTCOIN	PRICE	MARKET CAP	VOLUME	CIRCULATING SUPPLY
ETHEREUM	$4022.18	$466.07B	48.86B	115,874,552ETH
DOGECOIN	$0.5499	$71.27B	$23.55B	129,596,729,141DOGE
LITECOIN	$322.14	$21.50B	$6.66B	66,725,415LTC

HOW RELEVANT NEWS CAN AFFECT THE PRICE OF CRYPTOCURRENCIES

Relevant news affecting cryptocurrencies is under the Sentimental Analysis.Sometimes new can affect the prices of cryptos positively or negatively.

Example one
Just three days ago,Elon Musk announced that he won't be accepting Bitcoin for Tesla.Within 24 hours the price of BITCOIN went down.

Example Two
The same Elon Musk said in May,9,2021 that SpaceX launch would be paid in Dogecoin.This statement made people to begin to rush Dogecoin and as such the price increased.

Example Three
In February this year.Elon Musk boughy Bitcoin worth millions and planned to accept it as a payment method.This statement increased the price of bitcoin.

PENNY CRYPTOCURRENCIES
Penny cryptocurrencies are simply cryptocurrencies whose price is less than $1.

SHIBA INU(SHIB)
It is one of the newest and popular penny cryptocurrencies created in 2020.It is decentralized and is perhaps dubbed the doge killer.As at the moment it's price is $0.00001904.However with it's popularity it could go up sooner than expected.
SHIBA INU has a market cap of $7.03B and had about 394T Shiba tokens in circulation.
The Shiba Inu ecosystem works on the Ethereum blockchain and has three tokens which are shib,leash and bone.

Thank you professor @imagen for the class.