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

In this lecture, the professor @imagen explained the frequently used term in crypto world "Dominance". I learnt a lot about important terms which are being used in crypto market in this lecture. After reading this lecture thoroughly, now i am going to do my homework.

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 dominance word is generally used when some person or thing has the dominance and power to influence the others. When word "Dominance" is used in crypto world, it means that a coin has power to influence the other crypto currencies. Dominance refer to a coin which hold the highest market capitalization more as compare to other coin in crypto world at any specific time. This coin then will have more power to influence the other crypto currencies. In past, the Ethereum dominance was increasing gradually but the coin with the highest dominance in crypto world is Bitcoin. It has the power to influence the other crypto currencies value to the great extent with its rise and fall. We can calculate the dominance of a coin as:
Market value of crypto currency/total value of the cryptocurrency market

Bitcoin Dominance

Bitcoin Dominance is commonly used term in the world of crypto. Bitcoin is the first crypto currency with the high market value. Bitcoin has the highest dominance so it has the power to influence the other crypto coins in market directly with its rise and fall. The bitcoin dominance was 100 percent in 2009 when it was introduced because there was not any other coin at that time in the market. But as we now that the crypto world is the volatile. Changes occur all the time here. So bitcoin dominance also change. Sometime there is fall in bitcoin dominance, sometime it rise. In 2018, it fall up to 30% but in 2020, it again rise up to 73%.

The bitcoin dominance is 41.41% at this time. When it rise, the altcoin fall. Last year, the bitcoin dominance was high, so the altcoin was its lowest value. Now, the bitcoin dominance is falling so altcoin will start rising. The bitcoin dominance is high when more investor invest their money in bitcoin or move from altcoin to bitcoin. Bitcoin Dominance is decrease when the Investor stop investing in bitcoin and shift from bitcoin to altcoin.

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

Crypto world is versatile. It change every minute. People get profit when it goes up and suffer lose when it down trend. So rise and fall occur time by time. Here i am going to talk about the big fall i saw recently in well known coins; Bitcoin and XPR.

A strong fall in February in Bitcoin(BTC) Price and Dominance

If we see the historical data of bitcoin from February to march, then there we will notice a big fall in that coin price.

In above screen short, it can seen that the bitcoin price was decreased to its lower level at 21 February 2021. The market capitalization of bitcoin at that day was $ 1,072,263,294,725 and the bitcoin was rised to $ 58,330. Then at 28 February, the price fell from $ 58,330 to $ 43241.62. The market capitalization was $ 841,428,977,515 at that time. In these two days, the bitcoin was down trend and market suffer a lot. Now we will see the effect of this change on other coins.

EOS got effect
When the bitcoin goes down in February, the market suffer a lot. Like all other coins, the EOS also fell down. The price fell to 3.28 $ and there was a lose of $1.4 billons within one week.

A strong Drop in April

The price of bitcoin was $ 64,863 on April 14, 2021. As the crypto world is volatile so after that i start felling down. It reached to the 50506 $ till the april 25. There was fall of almost $17000 in bitcoin market value. The market capitalization of bitcoin fall from $ 1186364044140 to $ 915955953256.

ADA get effected
This change again effected the market badly. All the coins faced the downtrend. The ADA was rised to the $ 1.56 on 14 April. But because of bitcoin downtrend, the ADA fell to 1.02$. There was the lost of almost thirteen billion dollar in the ADA market.

What is the Altcoin Season?

Altcoin: Excepting bitcoin, all the coins are known as Altcoin.

Altcoin season: When there is decrease in the dominance of bitcoin, the altcoin season start increasing there. As we talked above that the bitcoin dominance occur when the investor stop investing in bitcoin and start investing in other coins(Altcoin). When the investors withdraw their money from BTC and invest that in other coins in market, then the Altcoin season start rising there. The bitcoin start losing its dominance on other coins in market when the bitcoin price and dominance decrease more. The prices of altcoin rises then.

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

Telcoin: The telecommunicating companies once introduced a coin. The purpose was to enable them perform the transaction worldwide. They want the traditional financial system to erace all the limitations regarding to transacting the money and want to make the sending and recieving the money process simple and easy. Telcoin is based on Ethereum ERC-20 standard. It is well known altcoin. The market price of telcoin is continuously increasing from last 3 month.

BNB: This coin is ranked on number 3. It is popular altcoin which work on the binance platform and its market price is 664 dollar. It was introduced by binance. It worked on ethereum ERC-20 platform for some time and then shifted to Binance and became the native coin of this platform. It is used as a chain as it act as host on another platform. It also use to manage the secured blockchain network.

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%)

The news and trends matters alot in rise and fall of crypto currencies. The market decisions are depends upon these news and trends. As investors follow the trends, so these news and trends has a very high importance in up and downtrending of any coin.

1- Tesla Buying Bitcoin and Accepting Payments with Bitcoins

On february 7, there was a news from tesla that Tesla has bough almost 1.5 billions bitcoin . After breaking this news, a rapid change was noticed in market. Before this news the bitcoin price was  $ 38,903 but after that it reached to $46203. So whenever some this type is news are break from any reliable company, then even the larger coins change to the great extent. People start investing in those coins and the price of that coins goes up eventually.

2-Elon Musk statement about the dogecoin

After this news, the market price of Dogecoin started felling. People withdraw their investments from Dogecoins.

3-Ripple gets effected

There is always rise and fall in market place but the media also has a great influence in doing so. The ripple got highly effected by the continuously coverage by media. It price started felling.

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

Safemoon: we know that when some coin has low price, it circulate more because people but these coin for its lower price. All those coin whose price is just some penny are known as penny coins. Safemoon is also one of those penny crypto currencies. The Coinmarketcap rank of this coin is 2507 in market. It is run on the binance blockchain network with 642,807,441,594,934 Circulating supply. It is a decentralized token which was introduced just almost 60 days ago. The main goal of this coin to erace the need of bank for financial trading.



Conclusion

In this homework i learned that

The price of crypto coins also get effected by news and trends.

The crypto world change every minute.

I also learned a lot about altcoins and conclude that these coins are going to take lead soon.

Cc:
@steemitblog
@imagen