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

Hello, fellow Steemit users. I am very excited to work on this homework post for professor @imagen who provided me a lot of information on cryptocurrency markets in his recent posts. Without further ado, I will begin with my assignment.

Q1. 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)

Dominance, in general, means the assertion of power or authority of one person or a thing over another. This provides the person or object an edge or advantages over others. When it comes to cryptocurrency, it can be said that the ratio of the total market value of a cryptocurrency to that of the total cryptocurrency market is known as the currency's dominance.

At the time of its launch in 2009, Bitcoin was the only cryptocurrency there was and so its dominance was an absolute 100%. However, gradually as more and more cryptocurrencies started pouring in, the dominance of Bitcoin started decreasing. Its dominance was drastically affected by the launch of Ethereum in 2015. Ethereum has shown very promising results recently and its graph is increasing by the day. At the present, when I am writing this article, the dominance of Bitcoin is 43.30% as shown above.

Q2. Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)

There have been periods in the cryptocurrency market when almost the entire market experiences a setback. The graphs and prices of several coins fall below. Two of those time periods are as follows -

1.The first time period can be said around the end of February( Feb 20th 2021) and the start of March 2021. During this time the cryptocurrency markets saw significant downfall in the price ranges of various cryptocurrencies.

As you can see, the price of Bitcoin went down from $57000 to $49000 in just a mere time of eight days. This was a very significant loss and several traders underwent losses. This drop could not be overlooked at any cost.

Even Ethereum also showed a significant downfall, its price went from $1900 on February 20 to $1500 on March 1. This came as a bit of a shock to traders as Ethereum was showing very promising results until then.

2.The second time such downfall came was in the month of April. It was from April 15 to 25. the graphs and prices of several cryptocurrencies started swooping down.

As you can see, the price of Bitcoin went from $63000 to $48000 in just a matter of eleven days. This crashing down affected the market tremendously. The fall was greater than $10000 as it was.

Even the price of Litecoin fell from $300 to $223 in just a matter of days. The graph which was deemed to be increasing suddenly hit a drastic downfall.

Q3. What is the Altcoin season?

Altcoin season basically refers to that period of time when the top 50 cryptocurrencies other than Bitcoin outperform it in terms of market capitalization or price ranges. In short when they do well on their graphs as compared to Bitcoin. Altcoin season can be termed even if 75% of the altcoins in the top 50 outperform Bitcoin. Since Bitcoin is losing its dominance, it is now possible to see the Altcoin season at times.

Q4. Give a brief description of at least 2 altcoins that are in the TOP 50.

1)UNI - UNI is the cryptocurrency token that was recently launched by the Uniswap platform. Uniswap is a decentralized platform built for exchanges over the Ethereum platform. Swapping and exchanging assets has been made very easy by Unisawp as it is much simple to use. By issuing the UNI token, Uniswap has allowed its users to participate in the governance of the protocol. At its first launch, a fixed amount of UNI token was provided as free to users who had used this platform in their previous transactions.

At the time of writing this post, the price of UNI was $40.22

2)XRP - XRP, Ripple is built for payments globally and is a digital asset. It is a centralized system. The main purpose of Ripple was to initiate smooth and quick transactions over the blockchain platform. It is also used for lowering exchange fees and ensuring instant settlement. The ledger work of XRP is also quite great.

As you can see, at the time of writing this post, the price of XRP was $1.36.

Q5. 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)DOGECOIN: Elon Musk seems to be pretty fond of making jokes related to the DOGECOIN. However, apart from him. the investors seem to take his jokes too seriously and the price of DOGE starts going in the air. A similar thing happened when he mocked the VOgue magazine using the word Dogue. The price of DOGECOIN rose by 682% from January 27 to January 29.

2)TRX (Tron) - Tron also saw a significant surge in its price range from the end of March 2021 up to the first week of April 2021. It was all because of the news spread regarding the agreement signed with DuckDAO. A 100% price increase was seen as a result of this news as the price of TRX went from $0.06 to $0.12. Thus this news was beneficial from Tron holders.

3)XRP - There was a lawsuit filed against Ripple by SEC. Due to the spread of this news, the price of XRP went down in the middle of February. The price came down significantly as the case continued. Thus, this news had a negative impact on XRP.

Q6. Describe one of the following Penny cryptocurrencies:
Shiba Inu, Safeemon, or Eclipse

Eclipse - The Binance Smart Chain launched its utility token known as Eclipse. It is a means to reward for holders. The token has two primary uses, firstly to do with the payment of additional features on the Eclipse platform, and secondly, to initiate the advertising or boosting on the Eclipse platform. Eclipse platform has certain built-in features as well.
Where to buy - You can purchase Eclipse at PancakeSwap.

As you can see the price Of Eclipse at the time when I was writing this post was $0.00000007.

Conclusion

To conclude, I would like to say that I have learnt a lot about cryptocurrency markets from this homework post. I have learnt about the term dominance in cryptocurrency. I have learnt about the different Altcoins there are and how the markets are affected when there is a downfall. I also learnt how news affects the graph of a certain cryptocurrency and how important it is to keep track of them. I also leant about the penny cryptocurrency, Eclipse.

Lastly, I would like to thank my professor @imagen for this task.