Crypto Academy Week 13 - Homework Post for [@imagen] // CRYPTO DOMINANCE
Hello crypto Prof @imagen!!
I am profoundly humbled to be a part of this week's crypto academy lesson presented by crypto professor @imagen, in fact you have been very enthusiastic in helping us obtain much knowledge about the crypto currencies, in fact my life in the crypto industry has improved due to lessons I focus on each week in the crypto academy.
Going straight to @imagen's homework assignment I'll explain each question in simple English so that any reader can read and understand it.
In simple terms, dominance refers to something whose availability exceeds all other things it is compared to. For example, cryptocurrency emerged in 2009 with only bitcoin, and at the time, BTC was all over the market, occupying the total market cap of the crypto industry. Now, the availability of other coins that the industry refers to as altcoins is sharing the total market cap of the industry with BTC
In simple terms, cryptocurrency dominance refers to the percentage of the cryptocurrency industry's total market cap that is comprised by a single coin; this helps individual stakeholders in the industry understand the trend of a particular cryptocurrency, whether it is in a downtrend or an uptrend.
For example, in the market, BTC has the most dominance, so the majority of altcoin trends are based on it.
When BTC dominance is increasing, the market cap of all other coins decreases, because every trader wants to be in a profitable trend, so they withdraw from altcoins and invest in BTC.
As BTC's dominance declines, the value of all altcoins declines.
In layman's terms, the crypto market today has a total market cap of 2.422 trillion, with Bitcoin accounting for 1.17 trillion of that total, or approximately 43.9 percent of the market cap; this is BTC's dominance in the market.
From the chart provided by trading view ,this is the Current Dominance of BTC as show in the image bellow:
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** THE CURRENT DOMINANCE OF BTC IS 43.9% WITH A MARKET CAP OF 1.17 TRILLION**
One thing I've noticed since I started investing in cryptocurrency is that the market is not stable; it falls sometimes and rises other times. Because the market is known to be volatile, investors always take advantage of it. Most traders invest when the price falls with the possibility of rising again, and they sell their positions when the price rises.
Looking at BTC it fell from $63745 on 13th April, 2021 to $47159 on 25th April, 2021 as represented in the diagram below :
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Second fall will be on Steem which saw a rise this year to $1.388 on 301th March, 2021 and felt to about 50% to $0.57 on 23rd April, 2021 as shown below :
Altcoins are any coins other than Bitcoin that are traded in the cryptocurrency market. The top altcoins in the market today are ETHER, XRP, TETHER, and POLKADOT AND CARDANO.
The altcoin season is the period in which the price of BTC falls in relation to the overall cryptocurrency market cap. The market cap is used to determine the number of holders of a coin and is calculated by multiplying the current price of a coin by the number of coins that are circulating.
During altcoin season, the market cap of BTC decreases, and thus its dominance decreases, resulting in increased competition among altcoins; this period is commonly referred to as alt-season.
During this time, most traders take their profits from BTC trading and invest them in any altcoin of their choice to help increase its value.
One of the known reasons for this year's alt season is the hyping of Dodge coin by whales and other prominent industry figures; another fact is the popularity of NFT.
In a nutshell, Altcoin season refers to the period during which all coins other than BTC see an increase in their market cap as a result of individuals withdrawing their profits from BTC and investing in these other coins.
ETHER
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This is the native coin for the Ethereum blockchain; it was launched in 2013 by a Russian programmer named Vitalik Butterin; it is intended to be used to pay for transaction fees (GAS FEES) when using the Ethereum and other blockchain-based platforms.
Ethereum has a market cap of: $495.531 Bn and it has a 24 hours volume of $54.773 Bn the current price of Ethereum is at $4,278.56.
BINANCE COIN (BNB)
This is another coin that gained traction in the market a few months ago; this coin was initially designed to run on the Ethereum blockchain until the developers of this coin, Binance, launched their own blockchain, Binance Chain, and another, Binance Smart Chain.
Initially, this coin was designed to be used to pay for transaction fees on the Binance exchange, as well as to solve some issues with the Ethereum blockchain, such as gas fees.
BNB has a current price of $660.36 and it has market cap of $ 101.319 Bn and within 24hours we have over $ 3.855 Bn valued BNB circulating. This coin is currently number three (3) in the market.
There are several factors that influence the volatility of the cryptocurrency industry, one of which is news about a specific coin. Sometimes this news causes FOMO, causing some traders to close their positions on coins they are trading, while others use this news to enter new positions.
Let's take a look at some viral news stories that have gotten the industry's attention this year;
- Since the launch of Dodge coins, it has received a significant boost this year after one of the world's most reputable business tycoons announced that he will be using this as a form of payment in his next project, which is currently the most trending project in the world (SPACE X).
Since the day this news was announced, the value of Dodge coins has risen steadily, moving from $0.3 to $0.6, according to my observations.
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- Bitcoin experienced a drop on April 22nd, 2021 as a result of news circulating that the White House is considering imposing a tax on investment gains; the price fell below $50,000.
The president himself announced that he would raise taxes on some wealthy Americans who trade in cryptocurrency, particularly those earning more than $1 million dollars.
The following is the latest news:
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This is a new coin with a rapid growth rate; it was launched in March 2021 and has over 1 million users. This coin is good for traders who HODL because it charges about 10% when you sell the token and distributes 5% of the charges to safemoon owners.
Although Safemoon has a lower market cap, many investors are investing in this coin expecting it to grow. Although some claim it is a scam, Safemoon is expected to bring its plans soon.
It currently has a market capitalization of $4.977 billion and a 24-hour circulation of $80.77 million. Its current price is $ 0, 00000850.
This coin can be purchased on exchanges such as Pancake Swap, Bitmart, Bakery Swap, and Whitebit.
Finally, I'd like to thank the crypto team for assisting me in acquiring new knowledge each week; the industry is vast and young, but we hope to achieve more through crytpoacademy.
Hola @alhajibabajnr
Gracias por participar en la Academia Cripto de Steemit.
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