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

in SteemitCryptoAcademy3 years ago (edited)

Hello everyone

Yet another interesting lecture on cryptocurrency market by @imagen. Thank you for revealing somes facts about cryptomarket. This is my task for this week after your lecture.

INTRODUCTION

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The cryptocurrency market is a decentralized and unique trade market that is not under the influence of central banks and its value is not dependent on bank policies, but can be influencedby some factorslike current trends in price of cryptocurrencies.

Explain in your own words, the concept of dominance in the world of cryptocurrencies. What is the dominance of Bitcoin at the time of writing?

Dominance in general term is a word that describes something, a person or group of persons that has more value, power or influence over others. In the world of cryptocurrency, dominance is used to describe a cryptocurrency/coin that has more with significant value and influence over the other currencies, as such, rise and fall of a cryptocurrency can have a direct impact on other currencies. Dominance can also e referred to as the percentage a of single virtual currency has of the market capitalization at that point in time

Bitcoin is one cryptocurrency that has been dominant since the existed of cryptocurrency. As at December 2017, Bitcoin dominance had a rapid drop of less than 1% its market value. The current bitcoin dominance as at the time of writing is shown below
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From the chart here,Bitcoin has a market dominance of 42.95% as at time of writing this homework.

☆Mention at least 2 times where the market had strong falls, mention several affected currencies.

The cryptocurrency market is not a stable as the market value of coin can rise and fall at any time. From the Cryptocurrency Historical Data Snapshot, it shows that as at the 17th of December 2017, Bitcoin dominance had a rapid drop of less than 1% in its market value within 1hour, the fall in Bitcoin also influenced a fall in the market value of other top ten altcoins(Ripple, Ethereum, Bitcoin Cash, EOS, Stellar, Litecoin, Tether, Bitcoin SV, and TRON) within this same hour, this shows the strong effect of Bitcoin fall in market value affected other Cryptocurrencies. After 24hours the value of Bitcoin and Ripple coin was still low, but other altcoin increased with a significant percentage. 7days later Bitcoin drastically rose to 20.36% and this influenced the increase in market value of other altcoins with the exception to MOTA coin stillbeing low. Below is a data showing the bitcoin downward trends in the week

CRYPTOCURRENCY HISTORICAL DATA SNAPSHOT- 07 December 2017
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In April 2021, the crypto marketplace experienced yet another huge drop in market value. On the 18th of April, 2021, dominant Bitcoin, dropped as low as 11% from $62,000 to $56,216. The fall in bitcoin's value in 1hour had a significant effect on other coins like Ethereum, Ripple, cardano, Litecoin, and polkadot. Following the trend to 24hours Bitcoin value reduced so badly that it drastically affected other altcoins, except Dogecoin. During this period majority of altcoins lost dominance and experience a poor growth. Below is a data from Cryptocurrency Historical Data Snapshot showing the trends.

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☆ What is altcoin season?

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Altcoin season is a period in cryptocurrency world when all altcoins experience a sudden spike in their market price value against Bitcoin and dollar price. A consistent rapid growth of 50 altcoins at the same period(within 30-90days) in comparison to other dominant cryptocurrencies is termed an Altcoin season by crpto investors .

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A chart for indicating that this period is an altcoin season.

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

▪︎Binance Coin (BNB)

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Binance Coin is a fast growing cryptocurrency. Barely 2years old this coin is becoming one of the largest cryptocurrency in crypto world.
Binance Coin is in close relation to the largest cryptocurrency exchange, Binance. With BNB, one can take advantage of transaction discounts make decisions about further development, and also able to invest in new projects, doing this gives users a discount on each transactions made. Binance tokens were designed with ERC20 standard based on ethereum support. As at time of writing this homework, Binance coin is ranked 3, with a worth of $606.595, it dropped by less than 8.82% within 24hours.
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▪︎ETHEREUM CLASSIC (ETC)

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Ethereum classic (ETC) coin is an altcoin that supports smart contracts and decentralized applications(dapps), it follows Telcoin in this altcoinseason. ETC provides an opensource and decentralized platform to blockchain-based smart contracts. It is designed with Ether support, which serves as the public distributed ledger for its operations. At the time of writing, ETC is worth $88.46 and has fallen by less than 13.90% in the last 24 hours with a market Cap of $11.19B. The ETC has experienced a significant growth within the last 3months, and this coin is seen to have a bright future.
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☆How can relevant news influence the price of cryptocurrencies in a positive or negative way?

The plain fact is that news about any cryptocurrency in crypto world can either make or break a coin. The cryptocurrency market is controlled mostly by trends, and any news can have a significant impact on the price of cryptocurrencies. This is due to the fact that crypto investors and traders use trending news to guide them while trading. Also, when predictions about a currency future are made and spread via news it creates a shake in the crypto world, which makes many crypto investors and traders to quickly take decisions and make adjustments to protect their investments, such as buying more coins when the value is low to gain more profits or selling off HODL(held coins) to recover their capital.

An example of the effect of news on cryptocurrency is with the dodgecoin.

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A news trend article from guardain.com about wat happened on the day Elon Musk the CEO of Telsa, made mention of dogecoin in his statement, immediately made dodgecoin to fall rapidly, as such investors and traders took advantage of this news. Some investors and traders bought dodgecoins while some sold their HODL (held coins) in other to gain their capital.
A chart showing fall of dodgecoin as at 09/05/2021
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•Ripple coin (lawsuit against Ripple on April 26th 2021)

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Another example is seen in Ripple coin(XRP). As news about lawsuit against Ripple in April 2021, Ripple coin experienced a sharp rapid fall in its price value. It fell from $0 within a few days.

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This is a negative impact of news on cryptocurrency value.

☆Describe any 1 Penny cryptocurrencies.

Penny cryptocurrencies are crypto coins that worth less than $1 and are still growing.

▪︎ECLIPSE COIN (ECP)

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Eclipse coin is a penny cryptocurrency (an emerging token) worth less than $1 and designed with the Binance Smart Chain blockchain. The Eclipse coin is gradually becoming more popular in the Binance Smart Chain market and the founders of this coin are developing other platforms where these tokens can be stored and get strong supports.
Eclipse coin built with a max supply of 1,000,000,000,000,000 tokens , of which 30.72% is already burnt and about 69.28% in circulation currently. As at time of writing Eclipse is currently valued at $0.000000071.

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CONCLUSION

The cryptocurrency market is quite erratic and is controlled mostly by news trends, as these news can either influence crypto market positively or negatively. The Altcoins are currently taking the lead in cryptocurrency world.

Thank you for reading through my homework @imagen.

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Hola @meniya

Gracias por participar en la Academia Cripto de Steemit.

Escala de Estimación.PuntajeObservación
Concepto de Dominancia.0.8
Ejemplos del mercado.1.6
Temporada de Altcoins1.0
Descripción Altcoins TOP 50.1.6
Noticias relevantes y ejemplos1.4
Criptomoneda Penny1.4
Calificación7.8

 3 years ago 

Thank you @imagen, I'll do better next class

 3 years ago 

Hello @imagen, please my work has not yet been curated @steemcurator02 and its 6days now, i had 7.8. This is the link
https://steemit.com/hive-108451/@meniya/crypto-academy-week-13-homework-post-for-imagen-cryptocurrency-market
Please curate. Thank you.