Steemit Crypto Academy Week 5 | Cryptocurrency Market. - @imagen Homework

One of the most fascinating industries in the world currently is cryptocurrency and blockchain technology. Cryptocurrency has brought into existence decentralized means of payment and the blockchain has cut into several industries.

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The Steemit crypto academy has made it easier to learn and understand more about cryptocurrency and the blockchain through professors who take their time to impart knowledge. I have been reading through a lot of professor's classes including @imagen who has been taking the time to explain terms and topics in the cryptocurrency and blockchain industry that could be difficult/new. Starting from "ICO", which explained how projects list their coins, IEO, and many more, to "Blockchain projects" which explained a whitepaper, roadmaps, and so on. In today's lecture, @imagen lectured on "Cryptocurrency market" which covered terms such as Dominance, the behavior of cryptocurrency, altcoin season, cryptocurrency Centavos (penny), and other terms. At the end of the class, an assignment was given and I will try all possible best to rejoinder all that should be with the assignment.

Cryptocurrency Dominance

The word Dominance in cryptocurrency is used to determine the percentage presence of a coin/token in the total market capitalization of all cryptocurrencies. The Dominance of coins differs from one another in the market. When Bitcoin came into existence, it had the entire market dominance but sooner, Ethereum and other cryptocurrencies came into existence and shared the market Dominance amongst one another. Although there hasn't been a time any altcoin has overtaken Bitcoin in terms of Dominance, the Bitcoin dominance fluctuates every now and then depending on how much money goes into each coin in the market.

If the total market capitalization is $1 trillion and Bitcoin has $500 billion while Ethereum has $200 billion and other altcoins share the remaining $300 billion, then it will be said that Bitcoin has 50% dominance in the market, Ethereum has 20% dominance and other Alts have the remaining 30%. In summary, the dominance of any coin is determined by the ratio between the market capitalization of any coin and the rest of the cryptocurrency market.

When there is an increase in the market share of altcoins increasing the capitalization of these coins, the Bitcoin dominance drops.

The Dominance of Bitcoin as at the time of writing is 44.91% with a volume of $581.628B

Strong Market Falls

Since the crypto market is very volatile and determined by demand, supply and other factors in between, there are times when the price of coins go up and when there they go down (blood on the street). Two periods when coins had a great drop in prices were;

Event 1

On the 14th of April 2021, Bitcoin started to drop from $64,875 to $50,947 on the 17th of April 2021 with a loss of $13,841.

Other coins followed suit on including ETH which dropped on the 15th of April 2021 from $2540 to 1942 on April 18th, 2021, with a loss of $598.

Between the 14th of April and the 18th of April, so many altcoins had a drop in price.

Event 2

2018 Bear market fall which started from 10th of January 2018. The Ethereum (ETH) market fell from $1445 on January 10th, 2018 to $355.77 on the 1st of April 2018, causing a loss of $1089 within the period.

The Bitcoin and all altcoins followed this trend and it urshered the bear market in.

Altcoin Season

Bitcoin is actually the dominant coin in the cryptocurrency market leaving any other coins as altcoins. The altcoin season begins when people start to invest/pull in money into altcoins. At this point, Investors are putting in more money into Altcoins than into Bitcoin. When 75% of the top 50 altcoins perform better than Bitcoin, then there is an Alt season. In this season, Altcoins moons (reach their new all time highs).

screenshot from https://www.blockchaincenter.net/altcoin-season-index/

2 altcoins in the TOP 50

Binance Coin

Binance Coin (BNB) is currently number 3 on coinmarketcap based on market capitalization. it is the native coin for the Binance ecosystem which includes the Binance exchange, the binance chain, Binance Smart chain, launchpad, Staking and Vault, and so on. Binance coin (BNB) as at the time of writing is traded at $665.27, a 24hr circulation of $4,258,901,418 and a market capitalization of $102,204,668,061. BNB is belieed to hit $3000 before the bull run ends.

Ethereum (ETHER [ETH])

The first Altcoin to the Bitcoin, founded by Vitalik Buterin with the aim of allowing smart contract and tokens to be created without its native blockchain. Launched in 2013, Ethereum was the proginator of ICO allowing companies and startups to raise funds for their businesses by selling ERC-20 tokens to investors before listing on an exchange.

Ethereum is currently traded at $4,192.48 with a 24 hours volume of $54,550,234,007 and a market cap of $485,564,942,477. ETH is currently ranked number 2 based on Market capitalization.

Relevant News that has Affected the Price of Cryptocurrency

Several news has led to the rise and fall of cryptocurrencies over the years since the market is very emotional and deals with both technical and fundamental analysis to stand. There are several times when the price of coins rose and fell as a result of news and I will be given a very good example of such;

• Donal Trump's Tweet saying he did not support cryptocurrency

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On Mon, Jul 15, 2019, Bitcoin fell by 10% as a result of a tweet from former president of the United States Donald Trump who tweeted that he wasn't in support of Cryptocurrency.

"not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air.” - cnbc Twitter account has been suspended so it is difficult to retrieve tweet.

• Elon Musk's Changing Bio on Twitter to Bitcoin

Elon Musk has been in the news lately and his news has been affecting the cryptocurrency space well. One of the important pieces of news from Elon Musk that impacted the price of Bitcoin was Elon Musk changing his Bio to #Bitcoin. This simple act caused the market to soar 20% as it gave confidence to people who wanted to invest in Bitcoin. In the space of 1 hour, there was an increase of over $5000 increasing the price of BTC to $41,940 from $37,299

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• XRP price drops after SEC file case against Ripple for selling $1.3 Billion of unregistered securities

The price of XRP dropped drastically over 40% when SEC filed a suit against Ripple on selling unregistered securities.

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Safemoon

Known as the "Safely to the Moon" token, it is rewarding users for holding its token rather than selling it. It charges users a 10% fee for selling its token and shares 5% of it to holders of the token. It is a BSC Defi project and token which has a value of less than $1 and could be regarded as a penny cryptocurrency. Safemoon launched on March 8, 2021, and although it is relatively new, safemoon plans to launch its exchange (safemoon exchange) and will be trading Non-fungible tokens as well.

A few investors in the crypto space still believe that Safemoon is a Ponzi scheme as it only aims at enriching early investors, while other investors are patiently expecting Safemoon to come up with its plans for the next quarter. Currently, Safemoon is listed on Coinmarketcap, can be stored in a Trust Wallet or any other Binance Chain Supporting Wallet, and it can be traded on Pancake swap.

It is traded at $0.00000865, has a 24 hour trade volume of $164,052,576 and a market cap of $5,928,485,192.

Conclusion

Cryptocurrency is a very interesting industry as well as a very volatile one. Although it is still young, it has shown its ability to become the future of finance. Thanks a lot to @imagen for the lecture, and I must say that I sure enjoyed writing this post.