Crypto Academy Week 13 | Homework Post for @imagen | Cryptocurrency Market by @huzaifanaveed1

Assignment by professor @imagen

The Lannisters have been on the throne for quite a long time now. The Starks, the Targeryerns and the Baratheons have been continuously fighting for sovereignty, power and authority in the Kingdom.

This Kingdom is the Cryptocurrency market. The king of the throne, The lannister, the Lion, is none other than the Bitcoin and all the other animals, the altcoins.

However with continuous determination the dragon (Ethereum) has gained power so much that the lion lives in a fright of getting dethroned. This dragon is Ethereum, an altcoin.
But it won't be easy for ethereum to dethrone the King from his kingdom. Bitcoin was the first Cryptocurrency in this market. Bitcoin basically created this kingdom, this market

This lecture mainly focuses on the dominance of coins in the crypto market and how some factors affect the dominance, for example the the altcoins seasons, the economic depreciation and much more.

CONCEPT OF DOMINANCE IN THE CRYPTOCURRENCY MARKET

I'll put it in brief first then explain it.
The more the people invest in a coin, the more it gets dominant.
Dominancy means the influence of a particular coin on the overall market. When a particular coin has the highest value in the market, it becomes the most dominant.

The complete value of the coin is know as the Market capitalization which can be calculated by:

Market Cap= Unit price of the coin × Circulating supply

For Example:

A company with 10 million shares at a price of $20 will have a market cap of
20 million

Market cap = $20 x 10 million
= 20 million

𝘮𝘢𝘳𝘬𝘦𝘵 𝘤𝘢𝘱𝘪𝘵𝘢𝘭𝘪𝘴𝘢𝘵𝘪𝘰𝘯. 𝘴𝘰𝘶𝘳𝘤𝘦: 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

BITCOIN'S DOMINANCY

Consider yourself as the only person in a jungle, a town or a marketplace. You're the one who basically started it. You're the king of the jungle. That is the case with Bitcoin. It is considered as the father of the Cryptomarket. It had absolute dominance when it was launched in 2009, because it had no competitors.
Bitcoin has such a huge impact that slight changes in the bitcoin's price the whole market is affected.

With the course of time some other coins were also launched and they took their place in the market as well, such as Etherum or Dogecoin. But even then Bitcoin is on the top of the chart with quiute a huge gap.

At this moment, Bitcoin tops the dominance chart at 40.2

𝒔𝒐𝒖𝒓𝒄𝒆: 𝒃𝒊𝒏𝒂𝒏𝒄𝒆

The graph shows us the value of 44.38

𝒔𝒐𝒖𝒓𝒄𝒆: 𝒃𝒊𝒏𝒂𝒏𝒄𝒆

STRONG MARKET FALLS

This is a sharp straight decline in the prices of coins in the market. Lets take a look at the huge market fall we had back in 2018

MARKET FALL 2018

Coin	3rd Nov, 2018	8th Dec, 2018
BTC	$6400	$3558
ETHER	$211	$84
EOS	$5.65	$1.85

In this periods, lots of other coins took a fall as well

𝑩𝑻𝑪 𝑭𝑨𝑳𝑳 (2018)

𝘴𝘰𝘶𝘳𝘤𝘦: 𝘵𝘳𝘢𝘥𝘪𝘯𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

There was a huge market crash in december 2018. This season was commonly known as the 2017 𝒃𝒐𝒐𝒎 𝒂𝒏𝒅 2018 𝒄𝒓𝒂𝒔𝒉

𝑬𝑻𝑯𝑬𝑹𝑬𝑼𝑴 𝑪𝑹𝑨𝑺𝑯 (2018)

𝘴𝘰𝘶𝘳𝘤𝘦: 𝘵𝘳𝘢𝘥𝘪𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

A coin quickly gaining fame and high prices, this crash lowered down its value with a huge margin

𝑬𝑶𝑺 𝑪𝑹𝑨𝑺𝑯 (2018)

𝒔𝒐𝒖𝒓𝒄𝒆: 𝒕𝒓𝒂𝒅𝒊𝒏𝒈𝒗𝒊𝒆𝒘.𝒄𝒐𝒎

MARKET FALL 2020

Coin	29th Feb 2020	16th March 2020
BTC	$8696	$5060
ETHER	$227	$115
ADA	$7.49	$3.9

𝑩𝑻𝑪 𝑪𝑹𝑨𝑺𝑯 (2020)

𝒔𝒐𝒖𝒓𝒄𝒆: 𝒕𝒓𝒂𝒅𝒊𝒏𝒈𝒗𝒊𝒆𝒘.𝒄𝒐𝒎
this fall in Btc affected the cryptocurrency market alot

𝑬𝑻𝑯𝑬𝑹𝑬𝑼𝑴 𝑪𝑹𝑨𝑺𝑯 (2018)

𝒔𝒐𝒖𝒓𝒄𝒆: 𝒕𝒓𝒂𝒅𝒊𝒏𝒈𝒗𝒊𝒆𝒘.𝒄𝒐𝒎

Ethereum was affected in this crash as we can see

𝑨𝑫𝑨 𝑪𝑹𝑨𝑺𝑯 (2020)

𝒔𝒐𝒖𝒓𝒄𝒆: 𝒕𝒓𝒂𝒅𝒊𝒏𝒈𝒗𝒊𝒆𝒘.𝒄𝒐𝒎

ADA a top coin these days was also one of the afectees

ALTCOIN SEASON

What is an altcoin?
All the other Cryptocurrencies other than Bitcoin are known as Altcoins

Altcoin season basically means where other Cryptocurrencies take a good hold in the market. There are more investors in these coins.

There are a lot of signs that indicate an Altcoin season which are:

1. when the Bitcoin market capitalization is less than 50% its known as altcoin season

2. when other coins experience a raise in the value compared to Bitcoin

Examples:
Ethereum & Cardano (ADA)

EVEN NOW WE ARE IN ALTCOIN SEASON

** 2 altcoins amongst top 50**

I will talk about two coins which are among top 50 and I have also invested in them

1. CARDANO (ADA)

Cardano was launched in 2017 by Charles hoskinson who also co-founded Etherum blockchain.

Cardano currently lies at No.4 position in the list

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘵𝘳𝘢𝘥𝘪𝘯𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

my investment in ADA

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

2)VECHAIN (VET)

Found in 2015 by a chinese Sunny lu Vechain holds the NO. 17 position on the Cryptomarket.

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘵𝘳𝘢𝘥𝘪𝘯𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

It started as a subsidiary of Bitse, one of China's largest blockchain companies, and is among the few blockchains that already have a substantial customer base among established companies.

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

My investment in VET

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

It is commonly known as VET*

THE IMPACT OF NEWS ON CRYPTOCURRENCIES

FEB 8 2021

𝑻𝒆𝒔𝒍𝒂 𝒃𝒖𝒚𝒔 $1.5 𝒃𝒊𝒍𝒍𝒊𝒐𝒏 𝒃𝒊𝒕𝒄𝒐𝒊𝒏𝒔. 𝑷𝒍𝒂𝒏𝒔 𝒕𝒐 𝒂𝒄𝒄𝒆𝒑𝒕 𝒊𝒕 𝒂𝒔 𝒑𝒂𝒚𝒎𝒆𝒏𝒕.

as a result the bitcoin price skyrocketed

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘵𝘳𝘢𝘥𝘪𝘯𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

MAY 10 2021

𝑺𝒑𝒂𝒄𝒆𝑿 𝒕𝒐 𝒍𝒂𝒖𝒏𝒄𝒉 𝒂 𝒔𝒂𝒕𝒆𝒍𝒍𝒊𝒕𝒆 𝒇𝒖𝒏𝒅𝒆𝒅 𝒃𝒚 𝑫𝒐𝒈𝒆𝒄𝒐𝒊𝒏

as a result DOGECOIN prices significantly rose

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘵𝘳𝘢𝘥𝘪𝘯𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

MAY 13 2021

𝑻𝒆𝒔𝒍𝒂 𝒔𝒕𝒐𝒑𝒔 𝒕𝒂𝒌𝒊𝒏𝒈 𝒃𝒊𝒕𝒄𝒐𝒊𝒏 𝒂𝒔 𝒑𝒂𝒚𝒎𝒆𝒏𝒕

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘵𝘳𝘢𝘥𝘪𝘯𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

as a result BTC prices crashed

𝘴𝘤𝘳𝘦𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘵𝘳𝘢𝘥𝘪𝘯𝘨𝘷𝘪𝘦𝘸.𝘤𝘰𝘮

As you can see how huge the impact if news is on Cryptomarket.

SAFEMOON

It was launched on march 8, 2021 by John Karony. The motto on its website is “Safely to the Moon,” Since march it has ranked over 1 million users and it is swiftly climbing up the table.

Safemoon is still under very low value. Its worth is not even a dollar.
If you have knowledge about stock market, in that market we call such stock with such a low value as penny stocks

𝘴𝘤𝘳𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

The same way Safemoon lies under the category of penny Cryptocurrencies

SafeMoon says that, unlike another cryptocurrency, it would reward citizens who purchase and keep its token instead of just trading it, which carries a penalty. It would charge dealers a ten percent penalty tax and allocate five percent of the revenue to other crypto owners.

𝘴𝘤𝘳𝘦𝘯𝘴𝘩𝘰𝘵𝘴 𝘧𝘳𝘰𝘮 𝘣𝘪𝘯𝘢𝘯𝘤𝘦

CONCLUSION

Finally this extremely informative topic comes to an end. To be very hinest it me a couple of days to do perfect research with all the graphs and stats. It was also Eid in the meantime.

Thank you professor @imagen for explaining and then giving such an important topic as a homework.

In this article We see that the bitcoin still tops the chart even in the altcoin season. We learned about the altcoin season

After that we discussed two of the top 50 coins ie, ADA and VET.

Then we shed some light on how news positively and adversely effect the market

In the end I wrote on a coin called safemoon which has a lot of potential according to me.

Regards,
@huzaifanaveed1