Crypto market is the top interesting and trending market globally which many individuals has engaged by Trading and investing on crypto currency. Moreover, there are numerous cryptocurrencies in the market that are available to invest on but while investing one need to go through some technical and fundamental analysis before buying or selling any coin.
[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 is refers as any something that has power, authority, or influence over others.
Dominance in cryptocurrencies reflects how much of total crypto currency market capitalization is comprised of BTC. It is usually measured in percentages. And it's a definition of BTC's percentage with regards to ALTCOINS in terms of market capitalization.To put into perspective, the market cap as at time of writing is a little over $2.35 trillion.
And currently, BTC dominance is below 50% this means that BTC comprises less than 50% of the total market cap. That shows that BTC is dominating other crypto currency in crypto space seconded by Ethereum.
Once a coin has the highest total value in a market cap, the coin is said to be the dominant coin over others. And this effect can be as a result of much investors investing more of their cash to that coin than that of the others in the crypto space.
In any of the market cap like Coinmarketcap, it is observed that Bitcoin and Ethereum has the highest dominance rate over other Altcoins.
BITCOIN (BTC) DOMINANCE (BTC.D)
The last time we had altcoin season, BTC dominance dropped to around 48% and this was followed by a huge surge in most Altcoins, driving prices way up.
According to the Trading view data, 40.96% is the BTC dominance as of the time I started writing this post.
Globally, Bitcoin is well known as as the king of all coins in crypto ecosystem. Bitcoin has been the dominant coin over others ever since it is found which is as a result of there were no other crypto assets in existence at the time. However, Bitcoin dominance are as results of high investor who has purchased on the coin and almost all the Altcoins use BTC as trading pair.
[Mention at least 2 times where the market had strong falls, mention several affected currencies. (Use screenshots)]()
When there is a sharp dip in the price of cryptocurrencies in the crypto market referred as Strong market falls. Several times crypto assets market have observed strong market falls. Since in crypto ecosystem there is volatile, any trader must understand that strong market falls is must occur and is unpredictable.
14th April, 2021. XRP price dropped 55% . That's from around $1.97 to $0.87
AAVE/USDT Price fall in Feb. 2021. Over 50% drop from 10th Feb to around 25th Feb. Price dropped from around $580 to $280.
TRX price fall in 21 April, 2021. TRX fell almost 50% in price dropping from $0.18 to $0.09
November 2020, XRP price fell over 70% from around $0.78 to $0.17.
September 2020, TRX price fell from around $0.05 to $0.024 in 50% dip.
AAVE/USDT Price fall in 19th December, 2021. Over 30% Price dropped from around $96 to $62
[WHAT IS ALTCOIN season]()
To understand what Altcoin season is, first I want to emphasize brief about what Altcoin is all about. Altcoin any other alternative cryptocurrencies other than The king of all Coins called Bitcoin. Therefore, Altcoin season is the period at which Altcoins gets more market cap value than Bitcoin.
Furthermore, ALTCOIN SEASON or better known as ALT season is a short period of time whereby majority of the ALTCOINS (ALTs) perform incredibly well or "moon" as we like to call it in the crypto world and inadvertently outperforms BTC.
This is usually caused by some of the following reasons:
Adoption of ALTs and Fundamentals. Not all ALTs perform well, even in ALT season. Therefore, we need to look at ALTs that are being adopted by institutions and market makers. Also, coins with strong fundamentals backing them tend to do well. The major reason though is BTC dominance.
[Give a brief description of at least 2 altcoins that are in the TOP 50.]()
ADA Is one of the trending altcoin in the crypto market and has the price of $2.30 and is ranked as number 5 by coinmarketcap.
Although this coin has been in existence since 2015 and was created by Charles Hoskinson who also serves as co-founder of Ethereum blockchain. This coin was officially launched in in the year 2017. ADA uses Proof of stake (PoS) as consensus algorithm and this system has more energy efficient and low energy consumption.
Through the screenshot image shown below you can see the available features and currently price of ADA. The image was screenshot from Coinmarketcap.
Currently, Dogecoin is among the trending and interesting crypto assets that capture the eyes of crypto investors. Also it's among the Cryptocurrency that has the hight trading volume in crypto space. Actually, Dogecoin price is being manipulated by groups of investors.
Billy Markus and Jackson Palmer who studied software engineering generated this coin. As of December 2013, it was launched as Litecoin fork.
As of the year 2018 precisely February, the block reward and block time is 10,000 Dogecoins and I minute respectively. Dogecoin uses Proof of work as consensus algorithm. From the below screenshot from Coinmarketcap you can see the price and other features of this coin.
[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. POSITIVE: Major League Baseball using Dogecoin to sell pair of Tickets.
100 Dogecoin each were sold to fan for pairs of tickets in a major league baseball game. This announcement made Dogecoin price surged On 4th May, 2021 as such is a positive news. From the chart below shows the price surged.
2. NEGATIVE: Tesla suspended using Bitcoin to purchase vehicle.
He tweeted this 2 or 3 days ago.
And BTC responded negatively by plummeting. Below the graph shows how BTC price dropped.
3. POSITIVE: Potentially promising Tweeted @elonmusk
This was really a positive and promising news as well. Actually, Dogecoin is been manipulated and once Elon musk tweet regarding Dogecoin is make the price of Dogecoin to pump. He tweeted this on 13th May, 2021 and instantly there was an increased in dogecoin. From the chart show how the price raised after that tweet.
[Describe one of the following Penny cryptocurrencies: Shiba Inu, Safeemon, or Eclipse]()
This another new crypto asset, that became popular after been launched in April. It has really dragged the attention of the investors because it's been compared with that of the dogecoin. As of earlier this month, the coin price increased about 910%.
From the image above you can see the current features and price of Safemoon.
However, Safemoon is a DeFi token and the success of the coin depend on how people buy it. Because the more people buy Safemoon, the more the price value goes up.
Although, is not that known and it can be considered as crypto asset with a penny price and it's liquidity is not that high compared to dogecoin. Currently, it ranked as number 2507 by coinmarketcap and is not yet listed in the Binance platform exchange but uses Binance smart Chain network.
Globally, Cryptocurrency market is one of trending market. And the price of the coins can not be predicted because of it nature and possess volatility. From the course of this task, I observed that not all ALTs perform well, even in ALT season. Therefore, we need to look at ALTs that are being adopted by institutions and market makers. Also, coins with strong fundamentals backing them tend to do well.The major reason though is BTC dominance.
However, there are different factors that can affect the price or nature of the crypto market and one of them is the influence of news which can either be positive or negative. So traders is recommended to be careful and proper technical and fundamental analysis should be carried out before investing on any crypto asset.
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