[SEASON 2] Steemit Crypto Academy Week 13 Homework Post for @imagen | Cryptocurrency Market
Hey Guys..!!
Meet again with me Wahyu Nahrul on the other Steemit Crypto Academy homework.
Today I will be working on homework given by one of our professors @imagen.
The homework given by our professor this week is about Cryptocurrency Market
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Okay, just get to the discussion. Happy Reading !!
Bitcoin Dominance in Cryptocurrency
Domination is a word that indicates a situation in which someone or something has a very important role in the community or aspects of their respective fields. And if something/someone already dominates the scope he has, then everything he does will become a big aspect which will affect something / other people who are not too dominating in the same field.
This is no exception to the cryptocurrency market, the dominance of this market is owned by a cryptocurrency called "Bitcoin". Bitcoin is a cryptocurrency that first appeared, it appeared and was known by people in 2009 or about 12 years ago. So that at that time it dominated the cryptocurrency market 100%, then its dominance began to decline since the popularity of cryptocurrency as an asset in 2017, and after many other coins began to appear, these coins are often referred to as "Altcoins".
With the emergence of more and more cryptocurrencies, Bitcoin's dominance in the cryptocurrency market is slowly starting to decline, you can see this in the chart below where the Bitcoin chart is depicted with orange lines.
When this article was written, Bitcoin's dominance in the cryptocurrency market had started to decline to 44.38%. This figure is still quite large for domination in the cryptocurrency market, because as we know, the number of coins in the cryptocurrency market is very large, reaching the thousands. With the dominance of Bitcoin as much as 44.38% in the cryptocurrency market, it is still very much taken into account, so that almost all cryptocurrency prices follow the movements of the Bitcoin price.
After Bitcoin, the dominance of the cryptocurrency market is owned by the Ethereum coin at rank 2, then there is Binance Coin in the third rank and so on as seen in the picture above.
A Strong Fall On The Cryptocurrency Market And Its Impact On Various Coins
With the enormous dominance of Bitcoin, the ups and downs of Bitcoin prices will affect price movements in the cryptocurrency market which results in many other cryptocurrency prices following the movements of Bitcoin prices.
In the history of the cryptocurrency market, there have been many moments where the price of the cryptocurrency market has experienced a very large decline due to the decline in the price of Bitcoin, this time I will give 2 examples where there was a decrease in the price of Bitcoin which affected other cryptocurrencies.
1. First Example (April 14 to 25, 2021)
The first example is that it just happened last month, on April 14, at that time, the price of Bitcoin was at price of $63540.81. After that, the BTC price experienced a significant decline over the next 11 days, which on April 25 the BTC price had reached $49132.94, the percentage decline in BTC at that time was -22.67% from the initial price on April 14, 2021.
Due to the fall in the price of BTC, the price of other coins has decreased as well, such as the Ripple Coin (XRP).
On April 14, 2021, the price per one XRP was $1.84061181, after the next 11 days, on April 25, 2021, the XRP price dropped to $1.02904830 this made the XRP price drop by -44.09%.
2. Second Example (07 to 12 March 2020)
The next example occurred last year, to be precise on the 7th to 12th of March 2020. On March 7 the price of BTC was at the price of $9149.89, and after the next 5 days, the price of BTC fell to $4863.06. This causes the price of BTC to fall by -46.85% from its initial price.
And this has a huge impact on other cryptocurrencies, as in this example, a cryptocurrency called Cardano (ADA) has decreased by -54.98% within 5 days due to the decline in the price of BTC.
Previously on March 7, 2020, it was priced at $0.05192688 and in just 5 days the price of the ADA coin fell to $0.02337662.
Altcoin Season
Altcoin season is a moment when many cryptocurrencies other than Bitcoin are experiencing significant price increases at the same time. Usually, this happens because the price of Bitcoin is increasing, so other cryptocurrencies will also experience an increase in price and usually, an increase from Altcoin is very drastic, even up to thousands of percent in just a few days. For example, you can see in the image below.
We can see in the picture above that there are very many Altcoins that have experienced a very significant price increase only in the last 90 days. For example, the DogeCoin has increased in price by 776.8% and it is ranked 3rd as the coin that has the highest price increase, in 1st place, there is the Matic coin with an increase of 1477% and there is a CHZ coin in 2nd place with an increase by 1314%.
Times like this are often targeted by investors and traders because they will have a large selection of cryptocurrencies that can be invested and traded, so that they will get a big profit.
A Brief Explanation of 2 Altcoins In The Top 50
1. Solana (SOL)
The first altcoin I will discuss is Solana (SOL). This cryptocurrency is one of the Altcoins that are included in the Top 20 of cryptocurrencies, which is ranked 18th.
At the time of writing, SOL's price was $40.96 which is experiencing a -4.3% price drop in the last 24 hours.
The total market cap of SOL is $ 11,145,305,534 and the total number of SOL coins currently circulating is 272,637,122 SOL with a maximum of 488,630,611 SOL coins.
SOL's All-Time High is $49.67 while its All-Time Low is $0.500801.
2. EOS (EOS)
The next altcoin I will discuss is EOS. This coin is the same as the Solana coin which was included in the Top 20 of cryptocurrencies, it is only under 1 rank from Solana which is rank 19 to be precise.
The current price of EOS stands at $10.63 which is also experiencing a price drop of -5.7% in the last 24 hours.
The Total Market Cap of EOS is $10,140,991,523 and the number of EOS coins that have been circulating is 957,264,514 EOS with the maximum number of EOS coins produced is infinity, meaning that EOS coins will continue to be produced without a limit on the number of coins.
The All-Time High value that EOS ever achieved was $22.71 which happened 3 years ago, while for the All-Time Low it was $0.502400 which also happened 3 years ago.
Examples Of The Influence Of News On Cryptocurrency Prices
The effect of a news item or a post from someone famous is very influential on the price of a cryptocurrency. This time I will show 3 examples of news that result in price changes for a cryptocurrency.
1. Binance Coin (BNB)
The first example comes from Binance Coin (BNB), on March 13, 2021, the Twitter account of BNBswap made a tweet on his account informing that Binance will burn its cryptocurrency called BNB. The CEO of Binance responded directly to this tweet, and he have confirmed that a number of BNB coins would be burned in the near future.
Because of this tweet, a few days after that, which is on March 26, 2021, BNB coins began to experience price increases in a row until April 12, 2021. The percentage of price increases that occurred during those 17 days was 154.24%. This is very fantastic, and very many people who hold the BNB coin get big profits.
2. Bitcoin (BTC)
The next example is from the BTC coin, as we know Elon Musk made a tweet telling us that now we can buy Tesla cars using Bitcoin. However, a few days ago, on May 13, 2021, he made another tweet on his Twitter account stating that the Tesla company no longer accepts the purchase of Tesla cars with Bitcoin.
From the results of the announcement, the price of BTC has decreased very sharply. Within 32 days after the tweet, BTC experienced a price decline of - $16685.41 with a percentage of -26.26%.
3. Dogecoin (DOGE)
The last one still comes from billionaire Elon Musk. This time he made a tweet alluding to a cryptocurrency called Dogecoin (DOGE). He made the tweet on April 28, 2021, with only:
"The Dogefather"
"SNL May 8"
You can see the tweet in the image below.
Because of this tweet, the price of DOGE has increased very rapidly in a short period of time. Starting from April 28, 2021, to May 7, 2021, DOGE has experienced a price increase of 198.91%. This has become a very hot topic of conversation on various social media and news on television.
Penny Cryptocurrency (Shiba Inu)
With the well-known name of DOGE in the cryptocurrency world because it has experienced a very fantastic increase in a short period of time, several other cryptocurrencies have caught the attention of investors and traders, for example, the Shiba Inu coin (SHIB). This cryptocurrency is attracting the attention of many people because of its similarity to the DOGE coin which is currently viral, starting from the characteristics of the logo and even naming it using names related to dogs.
Shiba Inu is a token running on the Ethereum Blockchain created as an experimental crypto asset or "Meme Token", this coin was created accidentally and for the purpose of trial and error, even the founder of this coin did not appear to the public.
However, the SHIB coin has another function, namely that it can be used as a means of exchanging Non-Fungible Tokens (NFTs) on the Ethereum Blockchain, and this token focuses on the NFT of artists who are related to the Shiba Inu dog type.
Currently, the SHIB coin is ranked 25th out of all cryptocurrencies in existence.
The price of the SHIB coin at the time of this article is at $0.00001577.
The current Market Cap amount of the SHIB is $8,094,701,627. While the total supply that has been circulating to date is 497,698,575,118,333 SHIB from the maximum total of coins produced of 1,000,000,000,000,000 SHIB.
The highest price (All-Time High) that Shiba Inu has ever reached occurred 5 days ago, namely at the price of $0.00003791. Meanwhile, the All-Time Low price that has been achieved occurred 6 months ago (the price is so low that the number that comes out is only the number 0).
Last Word (Conclusion)
The cryptocurrency market is a very unique market and is still a very updated trading market, the number of coins in the cryptocurrency market is so large that we can buy any coins we like. And with the increasing price of most Altcoins, the cryptocurrency market is starting to be in demand by many people so that many investors have started to enter the cryptocurrency market.
Those are some of my explanations regarding the cryptocurrency market, I apologize if there are still many mistakes that you can get when reading my explanation earlier, I would be very grateful if you told me in the comments column below.
Thank you for reading my blog, hope it will be useful for all of you. 😁
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Hola @wahyunahrul
Gracias por participar en la Academia Cripto de Steemit.
Thank you professor!
Hi @wahyunahrul
We have same marks in this assignment,,
But Congratulations on your upvote especially steemcurator1 vote
But how you can get this bro
What is the internal story😀
Ha ha ha ha
I do not have any special treatment my friend.
I think steemcurator01 curated this post because I was chosen earlier to be the winner of the homework professor Yousafharoonkhan, while the post hasn't received curation from steemcurator01, so he curated my other posts.
I hope that answers your question
And thank you for stopping by at my post 😁