Crypto Academy Week 13 | Homework Post for @imagen | Cryptocurrency Market
Dear Steemians,
I am glad to be part of this week's lesson. Thanks to Professor @imagen for giving us this excellent lecture on Cryptocurrency Market.
After going through the notes and researching this week's topic, I have decided to review what I have learned in my homework task.
Explain in your own words the concept of Dominance in the world of cryptocurrencies. What is the Dominance of Bitcoin at the time of performing your task? (Present at least one graph)
Dominance in normal terms means one thing is superior to the other. In our various institutions, Dominance talks about the authority the leaders have over their followers. For example, the managing director of a company is dominant over the financial secretary. That is the financial secretary answers to the Managing director.
Dominance in cryptocurrency refers to one crypto asset been superior to the other. To determine the Dominance of a crypto asset, we have to find the asset's market value proportional to the total market value of all cryptocurrencies. Let us say the market value of BTC is $50000, and the total market value is $100000, then the Dominance of BTC is calculated as follows,
From the illustration above, we have the Dominance of BTC to be 50%.
Dominance of Bitcoin (BTC)
Bitcoin is dominant over other cryptocurrencies. BTC has been dominating since its inception in 2009. The leading crypto for over ten years now. As of May 11, 2021, BTC has a market value dominance of 44.38%.
BTC dominance was very high but decreased with the emergence of other altcoins. More coins emerge and become popular, so the Dominance decreased.
BTC showing dominance of 44.38% as of the time I am writing this post
[source](https://coinmarketcap.com/charts/)
Mention at least two times where the market had strong falls, mention several affected currencies. (Use screenshots)
Because BTC has a high dominance on the crypto market, it almost always affects other currencies when there is a fall or rise in the market price of BTC. Most coins have the same directional move with BTC, but some show slight deviation from this common pattern. I will consider two cases in which the change in the price of BTC affected other currencies. In the first case, we will look at how BTC affected ETH when it fell, and the second case will also talk about how Steem was affected by The fall of BTC.
1st Case
In this case, we will look at the price change of BTC from April 14 to April 24, 2021.
Around April 14, 2021, BTC hits its all-time value of $64k, Which decreased drastically from $64k to $48k on April 24.
So we will compare Ethereum(ETH) with BTC during the fall of BTC.
data showing the fall of BTC
A chart showing when BTC rose to its highest value and when it fell
- Now, let us look at when ETH also rose with BTC and fell with it.
Data showing the different price change of ETH between 15th and 26th April 2021
a chart showing when ETH rose with BTC and fell wit it
During that period, ETH also rose to $2.5k and fell to $2.3k when BTC fell.
Case 2
In this case, we will consider the price change of BTC from February 21 to Feb 28th, 2021.
On February 21, 2021, BTC was around $58.3k, Which decreased drastically to $43.2k on February 28.
So we will compare Steem) with BTC during the fall of BTC
data showing the price change of BTC during that period
A chart showing when BTC rose and when it fell
- Now, let us look at when Steem also rose with BTC and fell with it.
Data showing the different price change of ETH between 15th and 26th April 2021
a chart showing when ETH rose with BTC and fell wit it
During that period, Steem also rose to $0.65 and also fell to $0.39 along with BTC.
What is the Altcoin Season?
An altcoin is a term given to all cryptocurrencies that came after the success of BTC. Example of such coins is ETH, Litecoin, Ripple, Tether, Bitcoin Cash, Bitcoin SV, etc.
Altcoin season is when other cryptocurrencies increase in market price; this normally makes them outperform BTC leading to a decrease in BTC dominance. During this time, altcoins continue to increase in value, causing BTC to decrease in value. The altcoin season happens when investors invest more in altcoins than BTC.
Give a brief description of at least two altcoins that are in the TOP 50.
Some examples of the top 50 altcoins are Litecoin, Neo, Stellar, Ether, Dogecoin, Binance coin, Tron, and others.
For the sake of this assignment, I will briefly discuss Binance Coin(BNB) and Tron(TRX)
- Binance Coin(BNB)
Binance Coin (BNB) is a cryptocurrency created by Binance exchange.
BNB is one of the rising Tokens currently. It has almost 25% from all-time high as compared to most crypto tokens. BNB has emerged to be the third coin on the market in terms of the market price. BNB can be used to trade crypto and also pay transaction fees on the exchange.
As of May 11, 2021, at 5 pm, BNB has a $666.12 market cap and more than $82billion market cap. It has a market dominance of 4.17%.
some BNB statistics
All time BNB chart showing an increase in market price
Tron(TRX)
TRX was launched in 2017 on the Ethereum blockchain network before moving to its independent blockchain.TRON blockchain-based operating system, which focuses on ensuring the blockchain technology is accessible for everyone to use. TRX is ranked 23rd and a market price of $0.1369 on coinmarketcap when I am writing this post.
TRX has the highest transaction per second as compared to the other cryptocurrencies. Ethereum up to handle up to 25 transactions per second, whereas BTC has up to 25. TRON network has a capacity of 2,000 TPS 24/7.
some TRX statistics
Today, the market price of TRX is $0.1369, Market Cap of $9,765,126,201.76, Daily 24h Volume of $4,595,641,413.19, and has a Circulating Supply of 71.66B TRX.
TRX has also been seen rising; this also makes it potential to increase in value in the coming days
all time TRX market price chart showing gradual increase in price
How can relevant news influence the price of cryptocurrencies positively or negatively? Name at least three examples. (Use screenshots) (Example: SENSO announced a 70% token burn, in a week, the price increased more than 100%)
News from most popular people about cryptocurrencies normally has a significant effect on that currency. This News can eighter affect it positively or negatively. In this part of the assignment, I will talk about a situation whereby News had a positive effect on the price of digital coins and vice versa.
- On January 29, 2021, Elon Musk, the CEO of Tesla motors, changed his Twitter bio to #bitcoin. This News has caused the price of Bitcoin to skyrocket from $33k to almost $38k within the first 24 hours.
Elon Musk tagged Bitcoin in his biography
Price of BTC before the news
Price of BTC after the news
- On Wednesday, April 28, 2021, Musk tweeted: "The Dogefather SNL May 8." This statement has caused the price of Dogecoin to soared 20% in the last 24 hours. It has increased from $0.28 to $0.32
Elon Musk's tweet
Price of DOGE before the tweet
Price of DOGE after the tweet
- Bitcoin (BTC) has slumped more than 8%, over 24 hours, on April 22, 2021. This sharp decrease in BTC's price resulted from the proposed tax increase on capital profits on earnings above $1 million. President Joe Biden made this proposal. He proposed to increase tax on capital gain from 23.8% to 39.6%; this had has caused a sharp shock on the crypto market, especially Bitcoin.
This News has had a significant impact on Bitcoin; BTC slumped from 64k to $47k, falling below the $50k mark for the first time since early March.
Describe one of the following Penny cryptocurrencies: Shiba Inu, Safeemon, or Eclipse
Eclipse
The live Eclipse price today is $0.00000007USD with a 24-hour trading volume of $1,736,895. Eclipse rose by 4.34% in the last 24 hours. Eclipse is ranked 2729 by coinmarketcap. It has a max. supply of 1,000,000,000,000,000 ECP coins.
Eclipse is one of the utility tokens which is built on the Binance Smart Chain. Traders can use the token to purchase various features on the Eclipse-built platforms. These features include advertisements, Eclipse uses Charts as a charting platform for BSC tokens. Trades get Ecclipes tokens when they spend their tokens on the platform.
The built-in features on Eclipse help reward token holders; there is a fee of 6% on any transaction on the chai. 3% of the tax is redistributed to all Eclipse token holders at that time. The remaining 3% is divided into half again, with 50% converted to the contract in the form of BNB. The remaining 50% is automatically paired with the contact BNB, which is then added to PancakeSwap in the form of liquidity pair.
Eclipse Tokens are secured by locked up 4% of the tokens in dxsale token lock for 3-6 months. The unsold tokens through dxsale are burned. The liquidity pool of the Eclipse token is locked for five years.
Traders can buy Eclipse tokens on PancakeSwap.
Conclusion
Thanks to professor @imagen for this wonderful lecture. Both BTC and altcoin have their seasons. BTC continues to be dominant over all other currencies. However, the constant rise of ETH and other coins keeps on decreasing the dominancy of BTC. During the Altcoin season, the price of altcoin increasing making it outperform BTC. This decreases the Dominance of BTC.
Thank you for reading my post
All the screenshots used for this illustration was taken from my coinmarketcap account
Hola @blessingkasabe
Gracias por participar en la Academia Cripto de Steemit.