Crypto Academy Week 13 - Homework Post for [@Imagen]- Cryptocurrency Market

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 1 graph)

Dominance in common terms means to show superiority over another entity. In the cryptocurrency market, the dominance of a coin over another is determined by the percentage ratio of the market capitalization of that particular coin over the total market capitalization of all coins in the market.

For example, for a global market capitalization of $1,000,000, a coin is said to have 60% dominance if it has a market cap of $600,000 while the other coins sum up the remaining 40%.

Bitcoin has been know to dominant the cryptocurrency market since it came into existence in 2009. Being the first crypto coin to be in existence, it has gained massive support with a strong community behind it, this is it revered as the mother of all crypto coins.

Even though Bitcoin has had a fair share of market dominance, the existence of certain altcoins which have gained massive support, the likes of Ether and Binance Coin has threatened its dominance over the past few years.

At the point of writing this post, Bitcoin Market Cap Dominance is 42.57% according to data from Tradingview

Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)

As a newbie on the Binance exchange platform, you would frequently receive warnings before a trade, stating how volatile the market is. The cryptocurrency market rises and falls according to market demand and available supply amongst other factors.

As mentioned in the lecture, not all crypto coins are independent of the influence of Bitcoin. Thus, the significant increase or decrease of Bitcoin's value affects those crypto coins too. Let's take a look at two instances where the market had strong falls.

The Market Fall in March 2020

A bear market was initiated on March 11, 2020, following the spread of Covid-19 which saw Bitcoin price fall from $7,910.09 to $5,238.44 on March 18, 2020, with a total market loss of about $48,724,852,205

XRP and Ethereum along with several other coins also plummeted with XRP falling from a price of $0.21 on March 11, 2020, to $0.14 on March 18, 2020, with a market loss of $2,844,438,853

Ethereum fell from $200.77 on March 11, 2020 to $114.84 on March 18,2020 also having a market loss of $8,796,517,728

Bear Market on July 2017

The July 2017 bear market saw the price of Bitcoin fall from $2,332.77 on July 12, 2017, to $1,929.82 on July 16, 2017, losing a market cap of $7,698,665,095. Though the fall was late since other cryptocurrencies began their bear run a day earlier

Ethereum fell from $211.52 on July 11, 2017, to $157.36 on July 16, 2017, experiencing a market loss of $3,713,599,096

XRP also fell from $0.2 on July 11, 2017, to $0.15 on July 16, 2017, having a market loss of $1,415,364,567

What is the Altcoin Season?

Altcoins refer to all other cryptocurrencies other than Bitcoin. Though Bitcoin enjoyed its creation, it still had its flaws that other developers intended to exploit. Thereby bringing about the existence of alternative coins like Litecoin and Ethereum which aimed to improve scalability and other flaws in Bitcoin.

The altcoin season occurs whenever Bitcoin's dominance plummets and the prices of altcoins increase proportionally with increased market cap dominance.
A clear distinction of altcoin season has been made by Blockchain Center.net which says:

If 75% of the Top 50 coins performed better than Bitcoin over the last season (90 days) it is Altcoin Season

Analysis shows that currently, we are in an altcoin season since altcoins have an 86 index over Bitcoin

Give a brief description of at least 2 altcoins that are in the TOP 50

Litecoin(LTC)

Litecoin was created by Charles Lee in 2011 as a peer-peer internet currency seeking to accomplish instant of almost transaction-free payments amongst users based on Bitcoin protocol. It is currently ranked 12th on CoinMarketCap

• Ledger type - Open source
• Consensus Algorithm - Proof of Work(PoW)

Current price is $304.19 with a 24-hour trading volume of $10,324,780,741 and market cap of $20,472,579,498. It has a circulating supply of 66,752,415 LTC coins and a max. supply of 84,000,000 LTC coins.

XRP

XRP is the native coin of the Ripplenet blockchain and currently ranked 7th on CoinMarketCap after it was overtaken by Dogecoin(DOGE) and Cardano(ADA). XRP of Ripplenet was created by Ripple Labs as a payment settling, currency exchange, and remittance system for banks and payment networks.

• Ledger type - Permissioned
• Consensus Algorithm - Proof of correctness
• Smart Contract - No

XRP has a current market price of $1.28 with a 24 hours volume of $12,950,120,638 and a market cap of $45,036,143,615 with a circulating supply of 35,108,326,973 XRP coins.

How can relevant news influence the price of cryptocurrencies positively or negatively? Name at least 3 examples. (Use screenshots) (Example: SENSO announced a 70% token burn, in a week the price increased more than 100%)

1. ElonMusk Tweet on April 28, 2021 hinting DOGE

Twitter

The price of DOGE before April 27, 2021, ranged between $0.25 and $0.27 until this tweet by ElonMusk made headlines. Quickly, investors jumped on the DOGE market which experienced a bull run with the price increasing from $0.27 on April 28, 2021, ending with a $0.66 market price on May 05, 2021, with around a 102% increase in market capitalization

source

2. Binance announced the 15th BNB burn which saw BNB price soar a week later.

Binance

BNB experienced another surge in price following their announcement of burned BNB tokens on April 16, 2021. The price spike is illustrated in the screenshot below

source

3. The stellar tweet announcing network upgrade to Protocol 17

Twitter

The price of XLM rose from $ 0.42 to 0.54 on May 01, 2021, following this announcement on April 27 with an in-market cap above $1 M

source

Describe one of the following Penny cryptocurrencies

Shib Inu (SHIB)

SHIB nicknamed the 'Dogecoin-killer' was launched a year ago as a meme coin similar to Dogecoin. The Shiba Inu was inspired by the Shiba Inu, a trusted hunting dog from Japan.

SHIB currently runs on the Ethereum network as an ERC-20 token and has been listed on some popular exchange platforms such as Huobi, Binance, Gate.io, Uniswap, and OKEx. SHIB is currently ranked #23 on CoinMarketCap

SHIB INU currently has a lot of projects underway as it is on the verge of diverging into the NFT market.

Currently, SHIB has a market price of is $0.0000204 with a 24-hour trading volume of $6,769,127,865 with a current market cap of $7,911,836,397. It has a circulating supply of 394,796,000,000,000 SHIB coins

This week's lecture on Cryptocurrency Market gingered me to make a lot of personal research into the crypto market and has broadened my knowledge of Bitcoin and altcoins in general. It is noted that the dominance of a coin is based on its market capitalization ratio to the total market capitalization.

Thank you for your attention and a great lecture professor @imagen