Steemit Crypto Academy – Season 2 - Week 5 - Post for @imagen

What is Dominance in Cryptocurrency?

Dominance is one of the popular terms in the world of cryptocurrency. Dominance in cryptocurrency is basically the ratio of a particular cryptocurrency asset market capitalization to the rest of the existing cryptocurrency asset market. At the moment, the only cryptocurrency that is associated with cryptocurrency dominance is bitcoin because it is without a doubt the largest cryptocurrency in existence. For instance, if the total cryptocurrency market has a market capitalization of 1 trillion and a certain cryptocurrency has a market capitalization of 500 billion, then that cryptocurrency has a 50% dominance because its market capitalization is half of the total market capitalization of other existing cryptocurrencies. With this, it becomes easier to understand what bitcoin dominance is all about.

Bitcoin dominance

Bitcoin dominance is basically the ratio of bitcoin marketcap compared to the marketcap of the rest of the existing cryptocurrencies. It is the dominance of bitcoin above the total marketcap of all cryptocurrencies. Bitcoin is such a dominant and powerful cryptocurrency that is has effect on other cryptocurrencies. When there is a rise in the dominance of bitcoin, altcoins most likely loses its value against bitcoin. When there is a fall in the dominance of bitcoin, altcoins most likely gains its value against bitcoin.

To find out the dominance of bitcoin currency we are going to be using data from coinmarketcap. I already gave an instance above, so we will be using that to find out the current bitcoin dominance. At the moment, the total marketcap of all cryptocurrencies is $2,318,822,156,183 and bitcoin has a marketcap of $942,190,331,857. To find out the dominance of bitcoin, we will simply divide the marketcap of bitcoin by the total cryptocurrencies marketcap, multiplied by 100 to get the percentage of bitcoin dominance.
Bitcoin dominance currently is 41.45%

Two (2) Times Where the Market Had Strong Falls

The cryptocurrency market has experienced rise and falls and in this post, I will be giving my opinion on the 2 times the market has had strong falls. For this, I will be focusing on bitcoin and ethereum.

The strong fall - #1 - Bitcoin and AAVE

The strong fall of BTC happened very early this year, On February 21st 2021 – February 28th 2021. Bitcoin experienced a strong fall that took the closing price of bitcoin from $57,539.94 on February 21st 2021 down to $45,137.77 on February 28th 2021. There was a continuous drop in price from February 21st - 2021February 28th 2021.

The strong fall of AAVE happened very early this year as well, On February 12th, 2021 – February 28th 2021. AAVE experienced a strong fall that took the closing price of AAVE from $529.90 on February 12th, 2021 down to $344.87 on February 28th 2021. There was a continuous drop in price from February 12th, 2021 - February 28th 2021.

The strong fall - #2 – Bitcoin and Litecoin

For bitcoin, another strong fall happened this year in the first quarter on April to be precise. Another strong fall of BTC happened in the first quarter this year, On April 15th 2021 – April 24th 2021. Bitcoin experienced another strong fall that took the closing price of bitcoin from $63,314.01 on April 15th 2021 down to $49,004.25 on April 24th 2021. There was another continuous drop in price from April 15th 2021 – April 24th 2021.

For litecoin, another strong fall happened this year in the first quarter on April. There was another strong fall of LTC in the first quarter this year, On April 16th 2021 – April 25th 2021. Litecoin experienced another strong fall that took the closing price of litecoin from $310.61 on April 16th 2021 down to $223.63 on April 25th 2021. It was a continuous drop in price from that April 16th 2021 – April 25th 2021.

What is the Altcoin Season?

In the cryptocurrency world, altseason or altcoin season is basically a period of time where altcoins are winning. In other words, altcoin season is a time where bitcoin loses some dominance against the altcoins in the market. During this period, prices of altcoins are on the rise and investors begin to pull out some bitcoins to invest in altcoins. A big example of what altcoin season looks like is what we are in at the moment. The cryprocurrency space is currently in altcoin season, that is why we are seeing a lot of projects making huge gains. The meme coins are the ones that have taken the limelight for now, with a lot of meme coins making incredible return of investment.

Description of at least 2 altcoins that are in the TOP 50

Cardano

Cardano is one of the top blockchain projects at the moment, currently ranking 5th on coinmarketcap. Cardano is one of those very interesting platforms that has been around for a few years now. Cardano was basically created to provide a balanced and sustainable ecosystem for cryptocurrencies and also aims to host smart contracts and dApps. The cardano blockchain uses a proof of stake consensus mechanism, with focus on scalability and faster transactions. Cardano is one of those projects that is considered as a big competitor to Ethereum even though it hasn’t yet reached the level of ethereum.

Cardano was introduced 6 years ago in 2015 and has gained massive recognition in the crypto space for its ambitious plans as it aims to create an internet of blockchains. While cardano is aiming to be the faster and more scalable alternative to ethereum with low transaction fees, it still doesn’t have smart contract functionalities yet and plans to enable it in the nearest future. Cardano is a proof of stake blockchain platform, providing unparalleled security and sustainability. ADA is the native coin of the Cardano blockchain.

Also, depending on how many ADA is held, it is used to validate transactions on the cardano blockchain network. Much like every other cryptocurrency ADA can be used as a currency or a store of value for sending and receiving funds. Based on the current statistics on the coinmarketcap website, ADA has a current martketcap of $67,261,384,587, Fully diluted marketcap of $94,739,357,400, Circulating Supply of 31,950,000,000 ADA, Total Supply of 45,000,000,000 ADA and a Max supply of 45,000,000,000 ADA. ADA is listed on a lot of the top crypto exchanges with a lot of liquidity. ADA can be traded on Binance, Coinbase Pro, Kucoin, Huobi Global, Kraken, Bittrex, OKEx, Bithumb, Gate.io and more.

Uniswap

Uniswap has been one of the most talked about projects in the crypto space and one of the leading DeFi protocols. Uniswap is a project that skyrocketed after it was introduced into the DeFi. As far as DeFi is concerned, Uniswap remains one of the most used DeFi applications on the ethereum blockchain to swap between ethereum-based tokens.

In my opinion, as far as fully decentralized exchanged is concerned, uniswap tops the list as it is one of the most functional decentralized exchange protocols. One of the main benefits of uniswap is that it is open source which means that users have the ability to access the protocol and make contributions. UNI token is the utility token of the uniswap protocol. Uniswap works by using what is known as smart contracts to fully control liquidity pools and automated market makers.

Based on the current statistics on the coinmarketcap website, UNI has a current martketcap of $22,219,892,569, Fully diluted marketcap of $39,710,979,478, Circulating Supply of 559,570,115.12 UNI, Total Supply of 1,000,000,000 UNI and a Max supply of 1,000,000,000 UNI. ADA is listed on a lot of the top crypto exchanges with a lot of liquidity. ADA can be traded on Binance, Coinbase Pro, Uniswap DEX, Kucoin, Huobi Global, Kraken, Bittrex, OKEx, Gemini, Bithumb, Gate.io and more.

How relevant news can influence the price of cryptocurrencies

In the cryptocurrency space, news most especially sentiments around social media like Twitter is a huge driving factor that determines the price of cryptocurrencies. For me, I place this under sentimental analysis because it involves paying attention to what is happening around social media especially Twitter which has proven to be a main platform for crypto related news and information. So far, we have seen the influence of social media (Twitter) on the prices of cryptocurrency assets, the most recent one being the tweet from Elon Musk who has single handedly moved the market from his tweets.

• Elon musk made a tweet that Tesla has suspended vehicle purchases using BTC due to wanting to promote sustainable energy. It was a tweet that drove the price of BTC down in an instance as people began to FUD.

Tweet - Elon Musk Tweet about Tesla and Bitcoin

Tweet Source

Negative effect on the price of Bitcoin BTC

• Another recent relevant news is Binance announcing that they will be listing GYEN. GYEN has been sitting idle for quite some time but immediately Binance announced that they will be listing GYEN, there was an immediate reaction in the market and the price of GYEN went up.

Tweet - Binance to list GYEN

Tweet Source

Positive effect on the price of GYEN

• Another relevant news that affected that caused the price of STORJ to skyrocket was the coinbase listing announcement. We all know that anytime coinbase announces that they will be listing a coin, the price of that coin always go up as people will begin to FOMO. The price of STORJ went up as coinbased announced the listing of STORJ on coinbase.

Tweet - Coinbase list STORJ

Tweet Source

Positive effect on the price of STORJ

Describe any of the Penny Cryptocurrencies...

Shiba Inu (SHIB)

We are now experiencing what we call meme season or the rise of meme coins, with different meme coins popping up. Shiba Inu is one of the projects that started out as a meme token on the ethereum blockchain, to compete against dogecoin, but it has grown to be more than just a meme token to become an ecosystem with multiple applications to launch soon, the Shibaswap being one of the most anticipated dex by shiba Inu. Shiba Inu has had a tremendous increase in price, retaining its position as the most viewed cryptocurrency on coinmarketcap.

Shiba Inu is found its way into becoming one of the top blockchain projects at the moment, currently ranking 28th on coinmarketcap. Shiba Inu has become the leading meme token at the moment, being the closest competitor to the king of meme coins dogecoin. Shiba Inu kicked off as an experiment but has grown to become a decentralized ecosystem. Shiba Inu is still in its early stage, making it one of the most promising projects with huge potential. SHIB is the native token of the Shiba Inu ecosystem and it runs on the ethereum blockchain.

Shiba Inu (SHIB) Wallets

As an ethereum-based token, SHIB is supported on every wallet that supported ethereum-based ERC-20 tokens. Most especially a variety of secure and non-custodian cryptocurrency wallets that give users full control of the ethereum and ethereum-based tokens asset by providing keys or seed phrase. Example of supported wallets are myetherwallet, trust wallet, atomic wallet, exodus wallet, ledger wallet, trezor wallet etc.

Shiba Inu (SHIB) Statistics

Based on the current statistics on the coinmarketcap website, SHIB has a current martketcap of $7,004,343,879, Fully diluted marketcap of $17,723,012,199, Circulating Supply of 394,796.00 Billion SHIB, Total Supply of 1,000,000,000,000,000 SHIB.

SHIB Markets/Exchanges

Shiba Inu (SHIB) is one of the hot projects right now and have attracted the attention of some of the biggest exchanges in the crypto space. It has gained a lot of popularity with high trading volume that a lot of the top crypto exchanges have no choice than to list SHIB on their exchange. At the moment, SHIB is on a lot of the top crypto exchanges with a lot of liquidity. SHIB can be traded on Binance, Uniswap, Kucoin, Huobi Global, Poloniex, Bittrex, OKEx, Bilaxy, Bithumb, Gate.io and more.

@imagen