Crypto Academy Week 13 | Homework Post for @imagen | Cryptocurrency Market

in SteemitCryptoAcademy3 years ago (edited)

Introduction

I feel so good to be back at the academy for yet another lecture this week. I have gone through the lecture of professor @imagen as we were taught about the cryptocurrency market and I will be solving the task given by the professor.

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)

In a layman language, Dominance means the superior authority of one thing over the other that gives it an edge above others and thereby makes it more important than every other thing in the same space. Bitcoin Dominance is the domination of Bitcoin over other cryptocurrencies in the cryptospace, which means Bitcoin's share of the global total market capitalization.

When Bitcoin came around in the year 2009, being the first and the only cryptocurrency as at that moment and that gave it 100% dominance. Bitcoin Dominance at the now is around 45.11% which has declined greatly from what it has been over the years. And I will show the screenshot of Bitcoin dominance below.

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Bitcoin Dominance- 45.11% (from TradingView)

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Bitcoin Dominance chart- TradingView

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

1. Considering the end of February 2021 to the early days of March 2021, there is a notable price fall of cryptocurrencies. Bitcoin and Litecoin would be considered in this section. Some screenshots are shown below;

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Bitcoin

From the screenshot above, it is seen that the price of Bitcoin on the 22nd of February 2021 was around $57,000 and it dropped so hard to around $45,000 on the 1st of March 2021. This is a heavy fall as there was greatly a $12,000 massive drop in the price of the asset in just 7 days.

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Litecoin

From the screenshot above on the 20th of February 2021, the price of Litecoin (LTC) per unit was around $236 and it fell to around $164 on the 1st of March 2021. The fall as at that moment for Litecoin was a huge one within 8 days.

2. And for the Month of April 2021 was a notable season when the crypto market experienced heavy all. In this part, I will be showing the price fall for Bitcoin and Binance Coin.

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Bitcoin fall- April 16 to April 26

From the screenshot of Bitcoin price fall uploaded above, Bitcoin experienced a hard fall that started on the 16th of April 2021 when it was around $63,000 and dropped hard to around $49,000 on the 26th of April 2021. This is a hard fall, although, it started retracing after that occurrence but it's not been to hit the price where it fell from.

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Binance Coin drop

Another example is the Binance Coin, it also experienced a high fall on the 16th of April 2021 when it was around $542 and on the 19th of the same month, it goes down to around $481. Binance Coin recovered fully on 28th of the month of April as it hit $568.

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What is the Altcoin Season?

Altcoin season refers to a particular period when the top 50 altcoins performs well in terms of price and market capitalization than Bitcoin which could be over some weeks or months ago. Basically, a period when the top 50 altcoins does well than Bitcoin is the Altcoin Season. In detail, if 75% of the altcoins in the top 50 outperforms Bitcoin then it's evident that we are in the Altcoin season.

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

Some of the Altcoins that fall in the category of top 50 are, Ethereum, Binance Coin, Cardano, XRP, Polkadot, Dogecoin, Uniswap and so on. I will talk about Dogecoin and Uniswap for this topic.

Dogecoin

Dogecoin is a cryptocurrency which is an invention of two software engineers, Billy Markus and Jackson Palmer and the invention first came into limelight in the year 2013. The aim of this cryptocurrency is to create a payment system that eliminates transfer charges, making it free and fun for use.

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As at this time, the price of 1 DOGE is around $0.4918 and maintaining the 4th position on market capitalization ranking with circulating supply 129,545,137,245 DOGE. DOGE has enjoyed massive growth over the last few weeks since Elon Musk called himself the DOGEfather.

UNI

UNI is a native token of Uniswap. Uniswap is a decentralized platform built on the Ethereum blockchain for easy exchange/swap of assets with an instant effect and that has eliminated the involvement of intermediaries in transactions. Users that uses Uniswap to exchange their assets don't need to create order book before carrying out their transactions.

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As at the time of compiling this homework post, the price of 1 UNI is equivalent to $39.21 and maintaining the 11th position on market capitalization ranking. UNI currently has circulating supply of 523,384,244 UNI.

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


1. Shina Inu Coin (SHIB): SHIB enjoyed a great rise in price after Binance exchange announced that the coin would be listed on their innovation zone. This news made SHIB to rise massively beyond 100% and currently it's above 100%. The current price of $0.00002968 and it would interest you to know that this asset has risen to hit the price of $0.00005 before heavy sell made it to drop again, yet it's still up by +100% in the last 24 hours.

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Binance announcement

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Shiba Inu rise up to +100%

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Shiba Inu rise up to $0.00005

2. DOGECOIN: Another example is the DOGE coin that has enjoyed a massive support from the CEO of Tesla motors Elon Musk. Elon Musk was early acknowledged with the Bitcoin price rise after the businessman tweeted that users can now buy Tesla with Bitcoin and that has really helped to boost the price of Bitcoin (news like this are known as Sentimental analysis- whereby users can forecast the future price of an asset). Same hand of support has been stretched out to DOGE coin as Elon claimed to be DOGEfather, he started supporting the crypto around February 2021 as he announced that he would buy out major holders of the cryptocurrency to push it to become "Currency of the Internet". He has been consistently tweeting about the coin and the price of the asset has been boosted massively. There are a few screenshots below;

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Elon Musk tweet about DOGE

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DOGE price as at 31st December 2020

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DOGE price movement at the moment

3. Safe Universe Coin (SAFU): Safe Universe coin falls under the category of Penny cryptocurrency and recently the team announced the listing of the asset on the pancakeswap.finance and the price movement of this coin has since been bullish. The promise of +15x pre sale returns interested a lot of investors to invest and many of them are making their returns already.

Screenshot_20210510-174806_1.png
SAFU listing on pancakeswap

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Describe one of the following Penny cryptocurrencies: Shiba Inu, Safemoon, or Eclipse

Shina Inu comes with SHIB token which is a meme coin that belongs to the family of DOGECOIN. SHIB is an ERC-20 token which means it's built on the Ethereum blockchain. Shiba Inu at the moment has made it to the number 18th position by market capitalization having its current price to be $0.00002968.

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Over the last previous days, SHIB has enjoyed a massive rise in price and Binance exchange just listed it on their exchange on the innovation zone today, 10-05-2021. The new listing has seen the SHIB grow massively even beyond 100%. With this listing, Shiba Inu coin is stepping its game in the crypto ecosystem and we might see it grow even bigger in subsequent weeks.

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In conclusion, the crypto ecosystem comprises of two types of cryptocurrency; Bitcoin and Altcoins (alternative coins to Bitcoin) and both have their season which could be a season where Bitcoin dominance would be very high or the Altcoin season (when top 50 altcoins outperforms Bitcoin). This lecture exposed me to so many things that seems latent to me earlier and thanks to professor @imagen for presenting this great lecture. Thank you all.

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Cc: @imagen

Written by;
@fredquantum

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Hola @fredquantum

Gracias por participar en la Academia Cripto de Steemit.

Escala de Estimación.PuntajeObservación
Concepto de Dominancia.1.0
Ejemplos del mercado.1.8
Temporada de Altcoins0.9
Descripción Altcoins TOP 50.1.7
Noticias relevantes y ejemplos1.9
Criptomoneda Penny1.5
Calificación8.8

Thanks for the review professor @imagen.

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