Crypto Academy Week 13 - Homwork Post for Professor @imagen on Cryptocurrency Market
I'm delighted to be a part of this lecture. This is an excellent lecture on how to understand the cryptocurrency sector. The professor assigns the homework. In the lecture, I try to answer all of the questions that are asked. I hope it will assist you in better understanding the cryptocurrency industry. Let's get this lecture started.
Define Dominance in the world of cryptocurrencies. What is the dominance of Bitcoin at the time of performing your task? (Present at least 1 graph)
The word dominance refers to the act of assigning supremacy to one thing over another. Dominance is a concept that is used often. There are a few elements in any sector that are superior to those in that field. A individual can have dominance over others, and animals can have dominance over others. We may describe it in a broad sense. One country's dominance over other nations.
When it comes to the cryptocurrency industry, dominance refers to a coin's hegemony over other coins on the market. The superiority of one coin over another in the crypto industry is determined by its global market capitalization.
At the time of writing Bitcoin currently has a 41.00% market dominance. Bitcoin's dominance has dwindled significantly over the last year this is due to the creation of other coins such as ETH, XRP,Dash, Doge and so on. This is a screenshot of Bitcoin Dominance
Here Is the Index chart of Bitcoin Dominance.
Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)
I'll show you two coin that had significant drops a few days ago. I demonstrate the price drop using screenshot from Coinmarketcap site
Event 1
There has been a significant price drop in cryptocurrencies from the end of February to the beginning of March 2021. In this segment, Bitcoin and Litecoin will be considered. The following are some screenshots:
According to the screenshot above, the price of Bitcoin was around $57,000 on February 22nd, 2021, and it fall to around $45,000 on March 1st, 2021. This is a significant drop, with the asset's price falling by $12,000 in just few days.
The price of Litecoin (LTC) per unit was around $227.3 on the 22nd of February 2021, and it dropped to around $164.98 on the 1st of March 2021, according to the screenshot above. Within few days, the price of Litecoin had fall dramatically.
Event 2
And the month of April 2021 was a notable season for the crypto sector, as it saw a lot of activity. I'll display the price drops for Bitcoin and Binance Coin in this section.
According to the screenshot of Bitcoin experienced a massive fall that began on the 16th of April 2021, when it was around $63,584.72, and ended on the 26th of April 2021, when it was around $49,007.77.
Another example is the Binance Coin (BNB), which had a high on April 16th, 2021, when it was around $548. and a low on April 26th, 2021, when it was around $496. On the 26th of April.
What is Altcoin Season?
Altcoin season often happens when Bitcoin is in a bearish or ranging market. During this time, liquidity and volatility are channeled into non-Bitcoin cryptocurrencies. As Bitcoin's price remains stable, investors are increasingly putting their money into other cryptocurrencies. This triggers market fluctuations in other coins, causing them to outperform Bitcoin. The success of the top 50 altcoins, such as Ripple, Ether, Cardano, Polkadot, Binance coin, and others, using price action, has mostly verified this season. We may assume that we are in the Altcoin season if the majority of these coins outperform BTC in the last 30 or 90 days.
Give a brief description of at least 2 altcoins that are in the Top 50.
Ripple (XRP)
Ripple is a decentralized peer-to-peer network designed to address the flaws of traditional financial transfer methods. Ripple's mission is to make global transfers quicker and more affordable. Ripple is a quicker and less expensive alternative to the Bitcoin network. A transaction on Bitcoin can take up to 500 seconds to settle, while Ripple takes just 3-5 seconds. As a result, Ripple is a stronger currency transfer choice than Bitcoin and other digital currencies.
Ripple has its own native token, XRP, which serves as the Ripple network's digital currency.
Ripple has its own native token, XRP, which serves as the Ripple network's digital currency. XRP was developed primarily as a payment-based digital currency. International transactions by financial institutions without the use of a third party, such as the Central Bank or other financial institutions, are possible with XRP.
| Price | $1.46 |
|---|---|
| Rank | No 7 |
| Marketcap | $53,215,449,760.39 |
| Trading volume | $13,612,326,621.08 |
| Market Dominance | 2.44% |
| Total Supply | 35,108,326,973 XRP |
| Circulating supply | 99,997,364,318 XRP |
Ethereum Classic (ETC)
It is one of the coins whose value has recently increased. ETC is the symbol for it. Some people confuse it with the cryptocurrency ETH. This, it is said, has also contributed to the price increase. Since it is one of the Ethereum forks, it is common to be confused with ETH. After the scandal, it surfaced after a period of 3.6 million ETH was robbed. Its logic is similar to that of the Ethereum blockchain. The network's goal is to allow smart contracts and decentralized applications
| Price | $96.85 |
|---|---|
| Rank | No 18 |
| Marketcap | $11,265,467,144.16 |
| Market Dominance | 0.52% |
| Total Supply | 116,313,299 ETC |
| Trading volume | $10,243,801,912.85 |
| Circulating supply | 116,313,299 ETC |
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%)
Ripple SEC Suit
The US Securities and Exchange Commission (SEC) charged Ripple on December 22nd 2021, with conducting $1.3 billion in unregistered security offerings. Ripple raised funds in 2013 through the presale of XRP tokens, which are unregistered securities, according to the SEC. This news caused fear among investors, prompting them to sell their XRP. Due to the SEC suit, several exchanges have reported that XRP trading will be suspended. This was really poor for XRP, and the price of the cryptocurrency plummeted.
Screenshoot of the news below
The news cause a huge price fall in XRP as Investors sold off their XRP, sending the price down . Nobody knows how the SEC suit will affect XRP, and no one knows how long it will take to resolve the lawsuit. The cryptocurrency received some bad news. XRP fell from $0.58 to $0.21 causiny the price of XRP to fall massively
Screenshoot of the historical data below
SpaceX to launch a Moon Satellite that is Funded by Dogecoin
Elon Musk tweeted and announced the launch of a Dogecoin-funded Moon Satellite on the 9th of May 2021. The price of Dogecoin was affected as a result of this. And it went up
Screenshoot of the tweet below
This announcement made the price of Dogecoin to rise from $0.43 to $0.7 this happen that very day.
Screenshoot below
Tesla stops taking Bitcoin as means of payment
Elon Musk tweeted on the 12th of May 2021 announcing that Tesla would no longer consider Bitcoin as a form of payment for its electric vehicles. He said that Bitcoin mining consumes too much electricity, which increases the amount of fossil fuel emissions on the planet.
Screenshoot of the Tweet below
The price of Bitcoin dropped from $54,300 to $48,500 as a result of this news. Elon has a history of manipulating cryptocurrency prices, so this was anticipated.
Screenshoot below
Describe one of the following Penny cryptocurrency: Shiba Inu, Safemoon, or Eclipse.
Safemoon
With its consistent growth in the community, Safemoon has attracted the attention of investors since its inception. Safemoon is a DeFi token that is powered by the group. This implies that the cryptocurrency's success is determined by its adoption and the strength of its group. Safemoon is based on Binance Smart Chain (BSC) to address the issues caused by farming incentives, in which users sell their assets after obtaining a high APY percent, causing the price of an asset to crash. Safemoon claims to reward users who keep their tokens instead of exchanging them. Safemoon also intends to introduce its own wallet and exchange, with Safemoon serving as the native cryptocurrency for transactions, similar to how Binance uses BNB and Kucoin uses the KuCoin token in its network. Safemoon's price will rise as a result of this, and liquidity will be created.
| Price | $0.00000911 |
|---|---|
| Rank | No 202 |
| Marketcap | $5,760,078,836.90 |
| Market Dominance | 0.26% |
| Trading volume | $51,700,025.96 |
| Total Supply | 1,000,000,000,000,000 |
| Circulating supply | 585,536,366,402,812 |
Conclusion
Every day, new projects for a better financial system are being built, advancing cryptocurrency technology. Since BTC is mostly used for payment, I believe focus will turn to Altcoin ventures. Other than being a payment mechanism, cryptocurrency has a lot to give, as shown by recent developments in DeFi and NFT ventures. This latest development is evident in our current debate, as Bitcoin's dominance is dwindling.
Thank you professor @imagen for this wonderful lesson
Hola @tayetaiwo
Gracias por participar en la Academia Cripto de Steemit.