Crypto Academy Season 2 Week 5 | Homework Post for @imagen | Cryptocurrency Market

Thank you Prof. @imagen for this lecture, it really broadened my mind on the crypto market. Here is my assignment post.

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)

For a layman, Dominance means the power of one thing over another that makes it superior among others within the space.

Dominance in crypto is the total market capitalization, supply, trading volume of all crypto assets in the digital market.

Bitcoin Dominance is the ratio between the market capitalization of Bitcoin to the rest of the cryptocurrency markets. Mathematically, Bitcoin dominance=(Bitcoin market capitalization)/(total market capitalization)
Bitcoin had a dominance of 100% when it was first created in 2009. This was because it was the only cryptocurrency at that time. The current BTC dominance according to coinmarketcap is 40.4168%

^{BTC dominance on coinmarketcap}

^{BTC dominance chart on Trading view}

The Altcoin dominance is determined by BTC dominance, and an increase in BTC dominance decreases the dominance of the other.

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

1. From late February to early March 2021, there were some significant price falls of some cryptocurrencies. Some of which were affected are;

From the screenshot below it can be seen that on 22 Feb 2021 the price of BTC was around $57,000 and it dropped to about $45,000 on March 1, 2021. That was a massive $12,000 fall in the price in 7days.

Another affected coin was Litecoin (LTC). LTC had a price drop of about $72 from a price of about $236 on 20 February 2021 to a price of about $164 on 1 March 2021.

1. Also in April 2021, another heavy fall was recorded. Bitcoin and Binance coin were some affected currencies.

It can be seen from Binance coin price history that it recorded some huge decrease in price from 16 April at $542 to $481 on 19 April.

Bitcoin’s price was at about $63,000 on 16 April and dropped to about $49,000 on 26 April. That is a $14,000 drop-in price in just 11days.

What is the Altcoin Season?

When the top 50 Altcoins perform better in terms of market capitalization and price when compared to Bitcoin in a particular period, maybe for over a week or month, it is called Altcoin season.
Technically, if 75% of the Altcoins perform better than Bitcoin, then it is the Altcoin season.

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

Some Altcoins that are in the top 50 are; Ethereum, Cardano, XRP, Dogecoin, Uniswap, Binance Coin, etc.
I will be talking about Ripple (XRP) and Cardano (ADA) in this post.

Ripple (XRP)

Ripple is a cryptocurrency created to allow a fast, secure and direct way to send payments on the internet. It was implemented in 2004 by Ryan Fugger. It was then launched in 2012.

Ripple (XRP) is currently ranked 7th on coinmarketcap.com with a current price of $1.40 a market capitalisation of $49,175,415,542 and a market dominance of 2.10005%. it has a circulating supply of 35,108,326,973XRP and a total supply of 99,997,364,318XRP.

Cardano

Cardano was launched in September 2017 by Blockchain Development Output HongKong (IOHK). It works on the proof of stake also called Ouroboros.

Cardano is currently 5th on the coinmarketcap.com ranking. It has a current price of $1.91 and a market capitalization of $61,129,147,779 and a market dominance of 2.6069%. It also has a circulating supply of 31,948,309,441ADA and a total supply of 45,000,000,000ADA.

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%)

DOGECOIN

The price of Dogecoin increased significantly when Tesla Motors CEO Elon Musk claimed to be DOGEfather in February this year. He announced that he would try and make Dogecoin the “major currency of the internet”.
^{Elon Musk Doge father comment}

It can be seen from the chart below that Dogecoin (DOGE) recorded a huge price increase in 2021 following Elon Musk’s comments.
^{Dogecoin rise chart}

Safe Universe Coin (SAFU)

^{pancakeswap listing announcement}

This cryptocurrency recorded a rise following an announcement that the asset will be listed on pancakeswap.finance

Shina Inu Coin (SHIB)

Following the Binance announcement that SHIB will be listed on their innovation zone, SHIB recorded a rise beyond 100%.

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

Shiba Inu comes with the SHIB meme token that belongs to the Dogecoin family. It runs on the Ethereum blockchain.
SHIB is currently ranked 28th on the coinmarketcap.com with a price of $0.00001821 and a market capitalisation of $7,119,246,886.

It was listed on the Binance exchange innovation zone on 10 May this year. Its new listing made it rise massively over 100%

Conclusion

There are two types of cryptocurrencies, Bitcoin and Altcoin (they are alternative coins derived from Bitcoin). Both have their season with dominance. It could be Bitcoin dominance or Altcoin season (this is where the top 50 Altcoins perform better than Bitcoin).

Thank You