Crypto Academy Season 2 Week 5 Homework Post for (@imagen) - Cryptocurrency market

This week, the professor explained in detail the terms frequently used in cryptocurrency trading but their meanings are not fully understood. He gave us homework as usual. I read the course article and now I am writing my homework.

P

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)

The term dominance means dominance. If the dominance in cryptocurrencies is, it is possible to calculate the market value of any cryptocurrency by proportioning it to the total value of the cryptocurrency market. Currently, Bitcoin has the highest dominance in cryptocurrencies, followed by Ethereum and Binance Coin. Especially in the last period, Ethereum dominance has been increasing.

In Coinmarketcap, the Bitcoin and Ethereum domination rate is in the upper middle zone. To learn the dominance of other cryptocurrencies, it is necessary to look at the details of the cryptocurrency.

For example, Steem dominance is 0.02% now
Steem dominance: Steem Marketcap / Total Marketcap
$ 382,181,651 / $ 2,402,903,109,451

Bitcoin Dominance

Bitcoin dominance is one of the terms we hear all the time. Bitcoin dominance is quite high, as Bitcoin is the first in cryptocurrencies and is in the first place in terms of total market value. Bitcoin dominance falls a lot in some periods and increases considerably in other periods. For example, in 2018, bitcoin dominance dropped to 30%. When Bitcoin was first launched, Bitcoin dominance was 100% because there was no other cryptocurrency other than Bitcoin. Earlier this year, Bitcoin dominance had risen to as high as 73%.

(tradindview Market Cap BTC dominance chart)

Bitcoin dominance 44.71% according to Tradingview data.

When Bitcoin dominance rises, a decrease in altcoins generally begins. For example, in December and January Bitcoin dominance was very high and altocins reached their worst price. As you can see on the chart, there has been a recent decline in Bitcoin dominance. When Bitcoin dominance falls, there is a significant increase in altocin prices.

Why does Bitcoin dominance rise?

Bitcoin dominance can increase in two ways. First, bitcoin has attracted big investors and bitcoin has been bought by investors. In the other case, a transition from altcoins to bitcoin has been achieved. In the opposite case, Bitcoin dominance decreases. Investors sell their bitcoins or switch from bitcoin to altcoins.

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

The market drops very strongly from time to time. During these periods, the market is sometimes affected by negative news, sometimes corrections are experienced, and sometimes the market is manipulated. Billions of dollars of leveraged trading positions are liquidated when the market falls too low.

The big drop in February 2021

There was a huge drop in the market in February 2021. Most cryptocurrencies have been affected by this decline.

(Coinmarketcap bitcoin data)

On February 21, 2021, while the Bitcoin price reached a record, there was a serious decrease in the market. That day, bitcoin had risen to $ 58,330. Bitcoin market cap had also reached $ 1,072,263,294,725. Bitcoin fell by $ 15,000 in about 1 week, and its market cap dropped to $ 841,428,977,515.

(Coinmarketcap chainlink data)

As the market collapsed on February 21, 2021, Chainlink got its share of this. Chainlink, which rose to $ 36.83 on February 20, dropped significantly after the market collapsed. The market collapse continued until February 28, and Chainlink dropped to $ 23 on February 28. Chainlink suffered a market loss of approximately $ 4 billion during this time frame.

(Coinmarketcap EOS data)

On February 20, 2021, the Eos rose to $ 5.43. Then, the decline that started in the market also affected the Eos price. The Eos price dropped to $ 3.28 on Feb. 28. Thus, EOS lost approximately $ 1.4 billion in market value within a week.

The big drop in April 2021

After the 2nd week of April, there was a big drop in cryptocurrencies. Bitcoin also broke a record by reaching up to $ 64K during this period. Of course, a few days later a decline started.

(Coinmarketcap bitcoin data)

Bitcoin, which rose to $ 64,863 on April 14, 2021, fell with the whole market a few days later. Bitcoin decline continued until April 25. During this period, there was a decrease of about $ 17,000 in the Bitcoin price. In addition, there was a decrease of approximately $ 275 billion in bitcoin's total market value.

(Coinmarketcap XRP data)

XRP is a cryptocurrency that has been experiencing problems lately. When the market collapses it is affected. Its price is already falling due to the problems. When the market collapses, its price starts to fall further. On April 14, XRP price rose as high as $ 1.96. Later, the crash that started in the market affected them as well. It dropped to $ 0.9 on April 23. After these decreases, it experienced a loss of approximately $ 30 billion in market value.

(Coinmarketcap ADA data)

ADA was affected by the crash in the 2nd week of April. ADA had risen to $ 1.56 on April 14th. It dropped to $ 1.05 on April 25. During this time period, it lost about 50% of its value. It suffered a loss of market value of approximately $ 13 billion.

What is the Altcoin Season?

Before I talk about what the altcoin season is, I want to say what the altcoin is. Cryptocurrencies other than Bitcoin are generally called altcoin = alternative coin.

In the altcoin season, bitcoin dominance decreases even more. Bitcoin tends to lose its dominance in the market to altcoins during this period. Bitcoin dominance reaches its highest level before altcoin starts. Then there is a decrease in bitcoin dominance and price. Bitcoin dominance regresses up to 30%. There is a big increase in altcoin prices during the altcoin season. Because investors switch from bitcoin to altcoins. In general, the draw month season begins with the end of the altcoin season.

For example, we are currently experiencing an altcoin season, although it is not complete. Because bitcoin dominance is gradually decreasing. Other altcoin prices, especially Ethereum, started to reach their highest levels.

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

Dogecoin: One of the most interesting cryptocurrencies of the last period. The price is incredibly manipulated by certain groups. It was launched as Litecoin fork in December 2013. Litecoin, as it is known, is a Bitcoin fork. Software engineer
It is known to be created by Billy Markus. Initially, they aimed to reach audiences that Bitcoin could not reach.

Bitcoin's block generation time is 10 minutes, Litecoin's block generation time is 2.5 minutes, and Dogecoin's block generation time is 1 minute. From here, we can say that the transfer speed of dogecoin is very fast compared to Litecoin and Bitcoin.

Coinmarketcap rank: 4
Dogecoin price: 0.497$
Circulating supply: 129,559,040,393 DOGE
Consensus algorithm: PoW

Ethereum Classic It is one of the coins whose price has increased recently. Its symbol is ETC. It is confused with ETH by some segments. It is said that this has also contributed to the rise in price. It is normal to be confused with ETH because it is one of the Ethereum forks. It emerged after a period of 3.6 million ETH stolen, after the controversy that occurred. It has the same logic as the Ethereum blockchain. The purpose of the network is to support smart contracts, decentralized applications.

Coinmarketcap rank: 17
Ethereum Classic price: 111.90$
Circulating supply: 116,313,299.00 ETC
Consensus algorithm: PoW

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%)

(1) Tesla Buying Bitcoin and Accepting Payments with Bitcoins

P

Upon the news that Tesla bought 1.5 billion bitcoins and had a payment plan with Bitcoin in the following period, an incredible increase in Bitcoin price started.

Bitcoin, which was $ 38,903 on February 7, rose to a price of $ 46,203 with the spread of the news. It is actually very difficult for cryptocurrencies with large market value such as Bitcoin to increase this much. However, since Tesla is a reliable company, it made a significant contribution to the increase in the Bitcoin price.

(2) SEC filing a lawsuit against Ripple and its two executives on December 22, 2020

P

XRP, which was launched in 2012, was sued for Ripple on the grounds that it was not registered with the SEC. According to the SEC, XRP is a security.

After the news spread and after the lawsuit was filed, the XRP price started to fall sharply. XRP fell from $ 0.52 to $ 0.17.

(3) Coinbase listing the STORJ

P

The announcement that major exchanges such as Coinbase and binance will list any cryptocurrency will cause an increase in the price of the coin. Coinbase announced that it would list Storj on March 23, 2021.

After this news, there was an increase of about 100% in the Storj price. Storj is rising from $ 0.92 to $ 2.04

Describe one of the following Penny cryptocurrencies: Shiba Inu, Safeemon, or Eclipse

Safemoon

Cryptocurrencies with a penny price are called penny cryptocurrency. Since their prices are very low, their circulating supply is quite high. One of these types of cryptocurrencies is SafeMoon.

It was launched about 2 months ago. SafeMoon acts as a decentralized financial token. As it is known, the purpose of decentralized finance is to eliminate intermediary institutions such as banks. The SafeMoon project also has such a purpose.

The CEO of the SafeMoon project is John Karony. It has managed to become very popular on Twitter.

The SafeMoon price rose considerably, especially on April 21st. This is because it started to be listed on popular exchanges like pancakeswap.

Coinmarketcap rank: 2507
SafeMoon price: 0.0.00000984
Circulating supply: 642,807,441,594,934
SafeMoon blockchain runs on the Binance Smart Chain network.

SafeMoon price fluctuates greatly. The ups and downs are made harsh.

Conclusion

It was a pleasant but at the same time challenging homework. I prepared a very comprehensive homework that covered many topics. Cryptocurrencies gain or lose value even in the face of the smallest news. Especially the tweets of famous people like Elon Musk are effective in increasing or decreasing the price of crypto money.

Cc:
@steemitblog
@imagen