CRYPTO ACADEMY SEASON2 WEEK5 ASSIGMENT POST FOR @imagen BY @jimah1k

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Hello @imagen

Another day of this season’s crypto academy after doing research reading the lecture notes to my satisfaction I present my assignment for this week’s home work. In the crypto currency market there are a lot of key words we need to know one of them is Dominance.

what is Dominance?

When we say dominance it simple means to have supremacy over something or someone. Well in the world of crypto it refers to the power a certain crypto currency has over the other. According to coin market cap Bitcoin has the highest dominance among all the other coins. Meaning BTC has or is more supreme from all the other crypto currencies. When BTC was first introduced it had a 100% dominance in the market because there wasn’t any completion from the other markets until the arrival of ETH, Ethernuem also has the next highest dominance in the crypto market. When another strong coin is introduced it can also compete with these coins.

Dominance of Bitcoin

Ever since Bitcoin was introduced in 2009 it has dominated in the crypto market as I said earlier because they weren’t any other strong coins in the past it continued to dominate until 2015 a strong contender was introduced which was ETH now even though BTC still dominates the market but its dominance level is not the same as it was introduced first in 2009 which was 100% in the future when other coins are introduced could serve as a strong contender to BTC and ETH
Bitcoin domination is influenced by the amount of traders who have invested in the coin so when traders do not invest in the coin the dominance level is reduced in simple form the more people buy BTC the more the dominance level increases below is a graph to show the Dominance level of BTC as of today

MARKET DOMINANCE OF 41.71%
Source

TWO TIMES BTC RECORDED STRONG FALLS

On April 14th a high value of approximately $64k was record according to the graph there was a gradual declining of the BTC because on the 17th $60k high value was recorded it didnd stop from there the decline continued and $52k was recorded on the 22nd of April investors who had purchased BTC on the 14th would have begun to panic because that’s approximately $12k loss in the next 72hrs BTC dropped again to $49k a very strong fall looking at the price BTC was within just less than 11days it dropped from $64k to $49k.

SECONDLY

There was another strong drop that occurred in February. At first it seemed February was the right time to invest in BTC due to how it was rising in the beginning weeks let’s look at the graph below on the 21st of February approximately $58k was recorded it took less than 48hrs to drop to $54k it kept on declining until on exactly on the 7th day that is 28th of February BTC recorded $45k another week of losses to many investors

Whenever there is a strong fall in BTC certain coins are affected some of them are litecoin and etherenuem

LITECOIN

After BTC began to decline began in April, due to the strong decline litecoin was massively affected because on april 17th litecoins was priced at $335 at high value which gradually declined in the next 48hrs litecoin was now $273 it continued to decline just as BTC was declining the that month on 25th it had declined to $223 you can see the notable difference.

Etherenuem

Ethereum also suffered due to the heavy fall in April look at the graph below

The fall of etherenuem began shortly after the fall of BTC but for its fall it was jus a 4days strong fall on the 16th April its price was $2509 it declined continuously for four days on the 20th April its price was now $2160 .

ALTCOIN SEASON

Altcoins are coins that are not BTC so any other can that is not Bitcoin is an alticoin examples are ethereum, litecon, dodge coin and many more so Altcoin season is when these coins have domination in the crypto market this usally happens when the is a strong fall in BTC. currently with the way BTC is gradually decreasing the altcoins are increasing.

A BREIF DESCRIPTION OF TWO OF THE TOP 50 ALTCOINS

I want to talk about litecoin, its sometimes refered to the little brother of bitcoin it was created by charlie lee in octorber 2011 it was actually designed to be used for daily transactions litecoin is a decentralized open source code mainly built for transaction purposes. it has its own coin which is LTC, litecoin has faster transactions fees on transactions are very moderate below is the market statistics for litecoin

Litecoin Price Today
Litecoin Price $322.34
Price Change
24h
$15.13
24h Low / 24h High
$296.25 /
$338.10
Trading Volume
24h
$6,620,612,576.08
35.67%
Volume / Market Cap 0.3039
Market Dominance 0.93%
Market Rank #12
source

Ethereum

ethereum is the second largest crypto currency in the world in 2013 ethereum was suggested however was implemented in 2014 vitalik Buterin. ethereum is decentralized it also has its own coin called ether below is the market statistics of ethereum

Ethereum Price Today
Ethereum Price $4,056.60
Price Change
24h
$296.05
24h Low / 24h High
$3,613.11 /
$4,171.02
Trading Volume
24h
$49,260,446,445.90
42.83%
Volume / Market Cap 0.1046
Market Dominance 20.20%
Market Rank #2
source

HOW NEWS INFLUENCES THE PRICE OF CRYPTOCURRENCIES

Social media i would say has a very big impact on the rise and fall of BTC lets take into consideration the following scenarios

LOOK AT THE TIME STAP AND DATE
now lets compare how BTC was doing before and after.

BEFORE

Before the information was published you can see from the above data that the high values recorded from January to February 7th were ranging from $34k to $40k, $40k was highest to be recorded.

AFTER

Just after the news was published BTC was currently $39k it jumped to $46k within 24hrs within the week and also recorded a high value of $50k

SECOND SENARIO

source
Elon Musk tweeted Dodge Father on the 27th of April 2021 lets look at how Dodge was doing before and after the tweet.

BEFORE

Now before Elon Musk tweeted, Dodge coin recorded a high values of ranging from $0.28 to $0.4 a day to the tweet it was currently at $0.28

AFTER

After the tweet it can clearly be see that it moved from $0.28 to $0.34 it didn't stop there it continued to increase until May it recorded its highest value ever $0.74

THIRD SENARIO

Tesla again announced that they wont be taking BTC for payments

source
when this tweet was posted there was a drop in the BTC was approximately $55k just after the tweet BTC hit $49k at low level this was just a slight fall because it however managed to hit $50k by the close of 24hrs.

SAFEMOON

safemoon was recently created in 8 th march 2021 its a decentralized token founded by john karony the main aim of safemoon according to thier white paper they reward users who have held on to their coins for a long period of time
safemoon follows a certain strict protocol in trading a fee of 10% which is then split into two, one part is shared to the investors who have held their coin the other part is then divided again half of what is spitted is sold to bnb and the other half is added to pancakeswap platform. safemoon can be traded in pancakeswap platform and also Bitmart.
below is the market statistics of safemoon

SafeMoon Price Today
SafeMoon Price $0.00001009
Price Change
24h
$0.000002154
27.14%
24h Low / 24h High
$0.00000771 /
$0.00001017
Trading Volume
24h
$45,549,030.95
Volume / Market Cap 0.008031
Market Dominance 0.24%
Market Rank #202
source

CONCLUSION

This lecture has shed dome light on Dominance of BTC, Altcoins and how social media can affect the rise and fall of BTC.
thank you professor for this wonderful lecture.