We meet again on homework for the 13th week of Steemit Crypto Academy. This time I will make a post for the homework of @imagen. The task this time is to answer several questions that have been given by the professor about Cryptocurrency Market.

Question 1

Explain in your own words the concept of Domination in the world of cryptocurrency. What is the dominance of Bitcoin when it comes to doing your job? (Serve at least 1 chart)

If we review what "Domination" means, we will get the understanding that domination is a condition in which something has more power and is superior to other opponents who are in the same context.

The domination of Bitcoin is a situation where Bitcoin has the most powerful power compared to other cryptocurrencies. This is already known to everyone, where everyone hears the word "cryptocurrency" then what will come to their mind is Bitcoin and this is not surprising because if we look at the overall cryptocurrency ranking, we will find Bitcoin is in the top ranking or Number 1. From this, we can already see how the enormous dominance of Bitcoin in the cryptocurrency world.

source by CoinMarketCap

And for now, he has dominated the cryptocurrency market for more than 44% of the total cryptocurrency market in existence.

source by TradingView

Question 2

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

There are many moments where the market price has experienced a very sharp decline, this decline in market price is almost all caused by a decrease in the price of Bitcoin due to the very large degree of Bitcoin dominance. This time I will give 2 examples of the impact of the decline in Bitcoin price which has caused several other cryptocurrencies to also experience a decline.

March 7 to March 12, 2020

During these 6 days, Bitcoin experienced a very significant decline, where on March 7 the Bitcoin price was at 9146.27 US Dollars and decreased to 4412.96 US Dollars on 12 March.

source by CoinMarketCap

This decline in Bitcoin price also affected the Waves coin price, which was previously priced at 1.3783 US Dollars to 0.7465 US Dollars on March 12.

source by CoinMarketCap

September 2 to September 5, 2020

The second example of a price decline occurred on September 2, 2020, where the Bitcoin price which previously stood at 11950.57 US Dollars became 9843.60 US Dollars on September 5, 2020.

source by CoinMarketCap

This also happened to the Binance coin, which initially stood at 24.72 US Dollars until it touched the lowest price on September 5, 2020, at 18.02 US Dollars.

source by CoinMarketCap

Question 3

What is Altcoin Season?

Altcoin season is a situation where all cryptocurrencies other than Bitcoin experience an increase simultaneously. This often happens when the price of Bitcoin has increased because Bitcoin is experiencing great dominance so that it will make the price of other Altcoins increase as well. The percentage increase in altcoins usually has a large amount of value, so investors are very happy when this altcoin season occurs.

Question 4

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

Altcoins that are included in the Top 50 which I will explain are AAVE and WAVES.

1. AAVE

AAVE is a protocol launched as a platform for lending digital assets, the type of financial system used by AAVE is Decentralized Finance which uses the Ethereum Blockchain as the foundation on which it works.

source by CoinMarketCap

AAVE was created in 2018 with an ICO in 2017 which raised $16.2 million from investors. Currently, AAVE is ranked 34 out of all cryptocurrencies and the price of AAVE tokens is 434.27 US Dollars.

source by CoinMarketCap

The total supply from AAVE currently circulating is 12,488,045.99 AAVE which is 78% of the Max Supply which is 16,000,000 AAVE.

2. AVAX

AVAX is an open-source blockchain that connects two people which are developers and users. With it, new blockchains can be created that run according to the rules set by the developer. AVAX can also create a new asset and can be coded to comply with certain parameters and trading restrictions. Smart contracts and scalable dApps are becoming a reality. Avalanche is the first blockchain capable of handling smart contracts and making transactions in less than a second.

Avalanche (AVAX) is made by Ava Labs, it is an open-source platform that can launch decentralized applications and blockchain implementations for companies in one ecosystem that works interoperably and is also highly scalable. Avalanche is said to be able to process more than 3000 transactions per second and will immediately get confirmation of transactions.

source by CoinMarketCap

AAVE has a rating of 51 of all cryptocurrencies, and the price of AAVE tokens is 34.81 US Dollars.

source by CoinMarketCap

The total supply from AVAX currently circulating is 128,880,939.11 AVAX which is 78% of the Max Supply which is 720,000,000 AVAX

Question 5

How can relevant news affect cryptocurrency prices positively or negatively? Name at least 3 examples. (Use screenshot) (Example: SENSO announces 70% token burn, within a week the price goes up by more than 100%)

1. Bitcoin

Source

source by CoinMarketCap

The first example that caused the Bitcoin price to soar was a tweet from Elon Musk on his Twitter account. He announced through his Twitter account that the products of the company he owned, Tesla, could be purchased using cryptocurrency, namely Bitcoin. This made the price of Bitcoin have increased very significantly and made people flock to buy Bitcoin.

2. Doge Coin

Source

source by CoinMarketCap

Once again our example this time comes from a tweet by billionaire Elon Musk, this time he tweeted about Doge Coin, where he said that "Doge Barking at the Moon". And of course, this makes investors flock to buy Doge and makes the Doge price a very significant price increase by a percentage of more than 600%.

3. RIPPLE (XRP)

Source

source by CoinMarketCap

There are examples of negative things that result from an action by a person or institution that causes the price of a coin to decline, this has happened to the XRP coin on January 8, 2018, where at that time CoinMarketCap decided to remove the XRP price from the Korean stock exchange table from the total price of XRP global average.

This caused many investors from Korea to sell their crypto assets and caused the XRP price to experience a significant drop which initially ranged from 3 US Dollars to around 0.6 US Dollars and this took quite a while before the XRP price returned to its original level.

Question 6

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

Eclipse is a platform that builds features to reward its users where each transaction is taxed at a 6% fee, and every 3% of the tax will be redistributed to all token holders at that time, while the other 3% is divided into two again by 50% is sold by contract to BNB, and the remaining 50% is automatically paired with BNB.

The eclipse developers hold 1% of these tokens freely, while 4% are locked for 3-6 months via dxsale token lock. Any remaining tokens that are not sold through dxsale will be burned to reduce the stock of these tokens and lock the Eclipse liquidity pool for 5 years.

When this article was written, the price of the Eclipse token was at the price of 0.00000007 US Dollars, which in the last 24 hours has decreased the price by 16.94%.

source by CoinMarketCap

When this article was written, the price of the Eclipse token was at the price of 0.00000007 US Dollars, which in the last 24 hours has decreased the price by 16.94%.

source by CoinMarketCap

The total supply of Eclipse currently on the market is 634,848.6B ECP with a Max Supply of 1,000,000,000,000,000 ECP.

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Conclusion

From the results of my answer, it can be concluded that we have to look at various things if we want to invest in Altcoins because many things can affect the price of these coins so that we can minimize the losses we get.

Those are some of my answers to the questions the professor has given. Hopefully, they can be understood by all of you.

cc: @imagen