Steemit Crypto Academy Week 5 | Cryptocurrency Market
Hello, Greetings from Nigeria, my name is @oluwatobiloba and I am glad to be a part of the Steemit crypto academy week 13. Today, I will be writing to answer the homework task of @imagen who discussed extensively the cryptocurrency market as well as give insight into a lot of terms in the crypto world. I will be answering each of his questions accordingly and I hope you enjoy your time on my post.
Explain in your own words, the concept of Dominance in the world of cryptocurrencies.
Dominance can be regarded as the percentage level of a coin's market capitalization from among the market capitalization of the entire cryptocurrency market. When cryptocurrency started in 2009, Bitcoin was the only coin listed on an exchange and it was the only cryptocurrency asset which made it have 100% dominance in the market but then, coins like Ethereum, Litecoin, XRP, BNB, IOTA, TRON, ADA and so on came into existence, and the Bitcoin started to lose its 100% dominance and started sharing it with others as they started to own shares in the entire market capitalization in the cryptocurrency market. Dominance is written in percentage (%) and not in the value of the market cap. The market currently has a capitalization of $2.383T and Bitcoin has a market capitalization of $1.327T to give Bitcoin a dominance of 44.30%. Just like I just calculated for Bitcoin, so do other coins have their dominance in the market.
What is the dominance of Bitcoin at the time of performing your task? (Present at least 1 graph)
The Bitcoin Dominance as at the time of writing is 44.32% with a market capitalization of $1.331T in a market with a total capitalization of $2.391T.
Total market capitalization of all coins
The market capitalization of Bitcoin
The Dominance of Bitcoin
Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)
- 2018 is a very notable time in the history of cryptocurrency regarded as the crypto bubble. The bitcoin market fell 60% between January of 2018 and February of 2018. In 32 days, the price dropped 66%.
- Within April 15 and 24th of 2021, the price of BTC went from $66086 to $42954. People rumored that the price drop was a result of the US planning to charge several financial sectors involved in crypto for money laundering.
What is the Altcoin Season?
The altcoin season is the period when investors and traders start to trade and invest more in altcoins. At this point, the rate of price increase in the top 50 coins based on market capitalization would have exceeded the price of Bitcoin. In most cases, altcoin season always comes with altcoins reaching a new all-time high (mooning). A very good example of Alt season was Late 2017 and early January 2018.
Give a brief description of at least 2 altcoins that are in the TOP 50
TRON
Launched by the Tron Foundation with Justin Sun being the CEO, TRON uses the Delegated Proof of Stake consensus mechanism and it allows users to create their coins as well as create Dapps. It is also making waves in Defi recently and just began NFTs. Tron uses the currency Tronix with a Ticker TRX. it is currently sold at $0.145 with a market capitalization of $10,397,665,928 and a circulating supply of 71.66B TRX and a 24-hour volume of $4,390,648,749. TRON uses both TRC-10 and TRC-20 token standards.
UNISWAP (UNI)
Uniswap is a decentralized financial trading protocol (Defi) built on the Ethereum blockchain. launched in November 2018 as an exchange, the Defi became more valuable in the cryptocurrency market when it launched its token for governance purposes proofing decentralized governance.
UNI is traded at $39.05 with a market cap of $20,438,313,261 and a 24-hour trading volume of $703,281,386 and a total UNI supply of 523,384,243.63 UNI
How can relevant news influence the price of cryptocurrencies in a positive or negative way? Name at least 3 examples
SEC Sue Ripple (XRP)
This isn't new to a lot of people in the crypto space as the SEC suit against XRP for selling unregistered security was all over the news. Immediately the news came out, XRP started to drop in price. It dropped over 40% within the period of December 22 when the case was filed and when the case was resolved, the price of XRP fell hard and people even though the coin was going to die. There were several delisting on so many exchanges within his period. From its high of $0.66, XRP dropped to as low as $0.17.
Flare Network's Spark increases the price of XRP
There was going to be a scheduled airdrop screenshot on the 12th of December to distribute Spark tokens to holders of XRP and this led to an increase in the price of XRP before the screenshot date.
screenshot from https://twitter.com/santimentfeed/status/1337195085717360644
Dogecoin Rise after Elon Musk started supporting
Ever since January 2021, Dogecoin has been seeing an exponential increase in price as a result moved the coin price to $0.5. Dogecoin has seen a growth from $0.01 to $0.77 within the period.
Shiba Inu
Just like the Dogecoin, the Shiba Inu coin is a meme coin with the ticker "SHIB". It is an experiment in decentralized spontaneous community building. Shiba Inu coin is an ERC20 coin and can be traded on Binance, Okex and many other exchanges including its native exchange Shiba swap. It is currently sold at $0.000029 with a volume of $8,222,530,747 in 24 hours and a market cap of $11,546,585,142
Hola @oluwatobiloba
Gracias por participar en la Academia Cripto de Steemit.
Falta profundizar en algunos puntos