Huobi Research Weekly(11.04–11.10)(Vol.87)
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 1.91%, with 25 projects increased in value to varying degrees. According to coinmarketcap, as of November 10, 2019, the total market cap of cryptocurrencies was 246,2 billion U.S. dollars, decreased by 0.26%, and the total market cap of the top 100 cryptocurrencies was 242,6 billion U.S. dollars, decreased by 0.39% from last week. 3 cryptocurrency projects entered the top 100 this week, namely DxChain Token、Aurora、Seele. As of November 10, 2019, Bitcoin was traded at 9055.53 USD, 1.88% lower than its price last week. Ethereum was traded at 189.48 USD, increased by 3.95%. The market segment distribution of the top 100 cryptocurrencies remained stable.
This week, the Hashrate of Bitcoin decreased and the Hashrate of Ethereum increased. The difficulty of mining Bitcoin and the difficulty of mining Ethereum both increased. The average number of transactions per block of Bitcoin and the average block size of Bitcoin both increased. The average number of transactions per block of Ethereum and the average block size of Ethereum both increased. The average transaction fees of Bitcoin decreased and the average transaction fees of Ethereum decreased. INS was the most active project on GitHub this week.
Bitcoin’s Hashrate was 89.97EH/s, increased by 1.35% from last week and Ethereum’s Hashrate was 182.43TH/s, decreased by 0.91% last week. The difficulty of mining Bitcoin was 13.549, increased by 1.04% from last week. The average difficulty of mining Ethereum this week was 2469.338T, increased by 1.73% from that of previous week.
In network activity, the average number of transactions per block of Bitcoin increased and the average block size of Bitcoin increased. The average number of transactions per block of Ethereum increased and the average block size of Ethereum increased this week. As of November 10th, 2019, the average transaction fees on the Bitcoin network this week was $0.711, decreased by 13.19% from last week. The average transaction fees on the Ethereum network this week was $0.125, decreased by 5.30%. Total number of addresses on the Blockchain and Ethereum network reached 43.19 million and 77.43 million, increased 0.16(0.36%) million and 0.50(0.65%) million respectively. HOT was the most active project on GitHub this week, with 172 commits submitted in the past week.
In terms of community activity, Tron, Bitcoin and Ethereum are the most popular communities on Facebook. On Twitter, the most popular communities are Bitcoin, Ripple and Tron.
2 investment activities took place in the blockchain industry this week, HomiEx got strategic investment, ULM got strategic investment.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 0.26%, with 25 projects increased in value to varying degrees. According to coinmarketcap, as of November 10th, 2019, the total market cap of cryptocurrencies was 246.1 billion U.S. dollars, decreased by 0.26%, and the total market cap of the top 100 cryptocurrencies was 242.6 billion U.S. dollars, decreased by 0.39% from last week, among which, DxChainToken had the largest increased of 212.57%, bringing its market cap ranking from №140 to №61, KuCoin Shares had the largest decreased of -25.75%, bringing its market cap ranking from №50 to №62. In addition, there were 3 projects that entered TOP100, namely, DxChain Token(DX, Now №61), Aurora(AOA, Now №70), Seele(Seele, increased 16.51%, from №101 to №93). As of November 10th, 2019, Bitcoin was traded at 9055.53 USD, 1.88% lower than its price last week. Ethereum was traded at 189.48 USD, 3.95% higher than its price last week.
The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 1.49% compared with the same period of last week. In this week, 60 of the top 100 projects increased in 24h trading volume, led by SNX with a weekly increase of 364.35%; there were 40 projects decreased in their 24h trading volume, there were 18 projects that saw over 20% decrease in their 24h trading volume, while 3 projects fell by more than 50%, led by XIN, with a decreased of 85.87%.
Figure 1.1: The Market cap and 24-hour Trading Volume for TOP100 cryptocurrencies
Source: coinmarketcap
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On November 10th, 2019, the overall market cap of the top 10 cryptocurrencies was 2201.10 billion USD, decreased by 0.22% from last week, accounting for 89.42% of the total market capitalization of cryptocurrencies, increased by 0.05% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 66.36%, decreased by 1% from last week.
Figure 1.2: TOP10 Cryptocurrencies’ Market Share of Total Cryptocurrencies Market
Figure 1.3: TOP10 Cryptocurrencies’ Market Share of Total Cryptocurrencies Market Changes
Source: coinmarketcap
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of platform project and the average market cap of application projects got the largest increase. As of November 10th, 2019,the total market cap of coin projects reached 1834.61 billion USD, decreased by 1.11%. The average market cap of coin projects reached 4.70billion USD, decreased by 3.65%. The total market cap of platform projects reached 30.76 billion USD, increased by 4.29%. The average market cap of platform projects reached 1.06 billion USD, increased by 0.70%. The total market cap of application class projects reached 23.78 billion USD, decreased by 0.66%. The average market cap of application class projects reached 8.81 billion USD, decreased by 6.70%. The total market cap of asset-backed token projects reached 4.63 billion USD, increased by 0.26%. The average market cap of asset-backed token projects reached 0.93 billion USD, increased by 0.26%.
Figure 1.4: TOP100 Cryptocurrencies Market Segment Capitalization
Source: coinmarketcap
Figure 1.5: TOP100 Cryptocurrencies Segment Average Market Cap
Source: coinmarketcap
The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 10th, 2019, among the top 100 projects, the number of coin class projects increased 1, application class projects decreased 2, platform class projects increased 1 and asset-backed token class remained the same. The largest overall market cap by segment was still coin projects, accounting for 75.61% of the total market cap of top 100 projects.
Note: According to the different attributes of cryptocurrencies, Huobi Academy of Blockchain Application will divide them into four categories: Coin, Application Class, Platform Class and Asset-backed Token.
Coin Project: Refers to a type of asset developed based on blockchain technology that does not correspond to a specific use scenario and whose main function is only the transaction target. Its asset value is mainly reflected by liquidity.
Platform Class Project: A type of asset that is associated with the development of the underlying technology of the blockchain and is supported by the right to use or participate in the platform.
Application Class Project: Refers to a type of asset that is associated with a specific application scenario and is supported by a certain right of use, participation, or dividend.
Asset-backed Project: Refers to a class of assets that is linked to actual assets such as gold and US dollars and supported by the value of physical assets.
2. Technical Statistics
2.1 Cryptocurrency Mining Statistics
The hashrate of Bitcoin decreased and the hashrate of Ethereum increased by this week. From November 4th, 2019 — November 10th, 2019, the average bitcoin Hashrate for the entire network reached 89.87 EH/s, increased by 1.35% from the previous week.
Average Hashrate for the entire Ethereum network was 182.43TH/s this week, decreased by 0.91%.
Figure 2.1: Bitcoin Hashrate Changes
Source: blockchain.info
Figure 2.2: Ethereum Hashrate Changes
Source: etherchain
This week, the difficulty of mining Bitcoin increased and the difficulty of mining Ethereum increased. As of November 10th 2019, average difficulty for mining Bitcoin this week was 13.549T, decreased by 1.04% from last week. The average difficulty of mining Ethereum this week was 2469.338TH, increased by 1.73% from that of previous week.
The number of blocks in Bitcoin increased by 3.52%. Top 5 rankings remained the same. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks dereased 3.67%. In the past week, Bitcoin mined 970 blocks, increased 3.52% from the previous week. Among the top five pools were Poolin, F2Pool, BTC.com, AntPool, Unknown these 5 pools mined 158, 145, 144, 117 and 89 blocks respectively, accounting for 16.30%, 14.80%, 14.80%, 12.10% and 9.20% of all Bitcoins mined this week. The Hashrate was 14.94EH/s, 13.71EH/s, 13.61EH/s, 11.06EH/s and 8.41EH/s respectively.
In the past week, Ethereu’s entire network mined 47710 blocks, decreased 3.67% from the previous week. The top five pools were SparkPool, Ethermine, F2pool_2, Nanopool and Zhizhu.top, each mined 14108, 11260, 4917, 4110 and 2144 blocks respectively, accounting for 29.572%, 23.57%, 10.29%, 8.60% and 4.49% of all Ethereum mined this week, respectively.
Figure 2.5: Distribution of Bitcoin Mine Pool
Source：BTC.com
Figure 2.6: Distribution of Ethereum Mine Pool
Source：etherscan.io
2.2 Activity Statistics
The average number of transactions per block increased and the average block size of Bitcoin both increased. The average number of transactions per block increased and the average block size of Ethereum increased this week. According to blockchain.info, from November 4th, 2019-November 10th, 2019, the average size of each block was 1.13MB, increased 0.89% form last week; there were on average 2306 transactions recorded in each block, increased by 1.01% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 113.29, increased by 3.62%. The average size of each block was 22358 bytes, increased by 3.48% compared to last week.
Number of unconfirmed transactions in Bitcoin increased by 2.6%. Number of unconfirmed transactions in Ethereum decreased by 1.97% from the previous week. As of November 3rd, 2019, the number of 7-day average unconfirmed transactions in Bitcoin network was 6911, increased by 2.60% from last week. There were 36107.20 unconfirmed transactions in the Ethereum network, decreased by 1.97% from last week, with the lowest amount of unconfirmed transactions in the week being 10903 and the highest amount being 57920.
Figure 2.11: Unconfirmed Transaction in Bitcoin
Source: blockchain.info
Figure 2.12: Unconfirmed Transaction in Ethereum
Source：etherscan.io
Total transaction fees of Bitcoin decreased. Total transaction fees of Ethereum decreased. As of November 10th, 2019, average transaction fees of Bitcoin this week was $0.711, decreased by 13.19% from last week. Average transaction fees of Ethereum this week was $0.125, decresead by 5.30%.
Figure 2.13: Bitcoin, Ethereum Average Transaction Fees
Source：bitinfocharts
The average number of distinct miners per day in Ethereum increased by 3.33% from last week. From November 3th, 2019-November 10th, 2019, the average number of distinct miners per day in Ethereum this week was 58.9, increased 3.33% from last week.
Figure 2.14: Number of Distinct Miners Per Day
Source：etherchain
The number of nodes in Bitcoin increased and the number of Ethereum increased this week. As of November 10th, 2019, there were 9609 Bitcoin nodes, increased by 0.57% compared to last week, of which 2509 nodes were in the U.S, 1899 nodes were in Germany, and 315 nodes were in China(№8), each accounting for 26.11%, 19.76% and 3.28% of the total number of Bitcoin nodes, respectively.
As of November 10th, 2019, there were 7667 Ethereum nodes, increased by 2.83% from the previous week. Specifically, there were 2143 nodes in the U.S, 1173 nodes in China, and 691 nodes in Germany, each accounting for 27.95%, 15.30%, 9.01% of total number of nodes, respectively.
Figure 2.15: Bitcoin nodes ranking
Source：bitnodes
Figure 2.16: Ethereum nodes ranking
Source：Ethernodes
This week, the growth rate for new addresses of Bitcoin and Ethereum both increased. According to the data on blockchain.info, as of November 10th, 2019, the total number of Blockchain accounts reached 43187787, increased by 155072 (0.4%) this week.
According to the data on etherchain, as of November 3rd, 2019, the total number of Ethereum addresses was 77425757 increased by 502240(0.65%) this week.
HOT was the most active project on GitHub this week. From November 4th, 2019-November 10th, 2019, HOT was the active project repository on GitHub with a total of 172 commits.
Figure 2.19: GitHub Code Activity
Source：cryptomiso
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 976k, 502k and 156k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 992k, 942k, and 483k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Energy Firm ENGIE Partners With Consulting Firm to Create Blockchain Software Offering
French electric utility company ENGIE and consulting firm Maltem Consulting Group have jointly established a blockchain development firm designed for commercial customers, according to a press release published September 7. The new project called Blockchain Studio received seed funding totalling €1.9 million (around $2.1 million). Blockchain Studio has created a software suite for commercial enterprises comprised of two fundamental tools. One tool is focused on the development of smart contracts and enables its application by users without technical background. The other tool manages the creation of cloud-based or server-based blockchain infrastructure.According to the announcement, the company is planning to roll out its services primarily on the Asian market at the beginning of 2019, with an office in Singapore. By the end of the first financial semester of next year, Blockchain Studio will also open operations in Southern Europe.
2. Ethereum Co-Founder: Hopefully We Can Interoperate With China’s Crypto
Ethereum co-founder and founder of Consensys, Joseph Lubin, said that he
hopes China’s Central Bank Digital Currency (CBDC) will allow for
interoperability with public permissionless blockchains, including
Ethereum.Lubin made his remarks during an interview with
Forbes published on Nov. 9. He explained:“I assume it is going to be
exactly what Chinese leadership thinks is most beneficial to Chinese
leadership. Hopefully that’s also open and we can interoperate with it, but I
don’t know.”Furthermore, Lubin added that he would like to see more
participation from China in the Ethereum ecosystem. He cited the case of
the Belt and Road blockchain-based commerce platform, noting that it uses
one of the “weaker technologies” compared to public blockchains like
Ethereum.Lubin also noted that he expects that China will continue to
undermine the U.S. dollar’s status as the world reserve currency.
https://cointelegraph.com/news/ethereum-co-founder-hopefully-we-can-interoperate-with-chinas-crypto
3. VeChain Unveils Food Tracing Solution Foodgates at China’s Import Expo
Singapore-based blockchain application platform VeChain has unveiled a new blockchain tracking system for the food and beverage industry.Blockchain has made significant inroads into the food industry in recent years. Businesses have devoted energy to tracking everything from coffee to lettuce, arguing immutable ledgers save time, money and add security to supply chains. Nonetheless, criticism has come from experts who have identified shortcomings in potential new systems.
https://cointelegraph.com/news/vechain-unveils-food-tracing-solution-foodgates-at-chinas-import-expo
4. Gaming Rewards Firm Partners With Blockchain-Based Streaming Platform DLive
United States blockchain-based rewards and marketing company Refereum has announced its latest partnership with decentralized streaming platform DLive to reward gamers for creating and watching content.According to a press release shared with Cointelegraph on Nov. 7, Refereum’s partnership with one of blockchain’s largest streaming platforms, DLive, will enable users to earn rewards for live-streaming games.
3.2 International Policies
1. Malaysia to Impose Cash Transaction Limit of ＄6K in 2020: Report
Malaysia is planning to impose a $6,000 limit on cash transactions in 2020, according to a deputy governor at the country’s central bank. The new restrictions aim to prevent the use of cash in illicit activities, and won’t affect regulated financial institutions or other entities transacting for humanitarian aid purposes.Abdul Rasheed, the deputy governor in question who works for Bank Negara Malaysia (BNM), claimed that the measures will apply to all transactions involving physical cash, including payments for goods and services, reports local English-language newspaper The Star.
https://cointelegraph.com/news/malaysia-to-impose-cash-transaction-limit-of-6k-in-2020-report
2. Tunisia to Launch E-Dinar National Currency Using Blockchain
Tunisia has become the first country to start moving its national currency to
a blockchain platform. Russian ICO startup Universa will help issue and
manage Tunisia’s Central Bank Digital Currency (CBDC), reported Russian
news agency Tass on Nov. 7.Furthermore, Universa will also reportedly
receive a percentage of all transactions carried out with the “e-dinar” while
the ledger will be visible to the country’s central bank.
Founder and CEO of Universa Alexander Borodich, however, points out
that this form of electronic money currency cannot be considered a true
cryptocurrency.The CBDC or e-dinar will be state-owned and backed by
paper money. But the blockchain will not only protect against counterfeiting
but will also make issuance cheaper and more transparent.
https://cointelegraph.com/news/tunisia-to-launch-e-dinar-national-currency-using-blockchain
3. Hong Kong Steps Up Research Into Central Bank Digital Currency
The Hong Kong Monetary Authority (HKMA) has revealed it is conducting
research into applications for a central bank digital currency (CBDC).
Ejinsight reported on the news — announced during the Hong Kong
Fintech Week — on Nov. 7. HKMA reportedly aims to release a major
report on its findings in Q1 2020. HKMA had also just revealed it had
signed a blockchain collaboration with a subsidiary of the Institute of
Digital Currency at the People’s Bank of China (PBoC) — an institution
which many expect will be the first globally to launch a CBDC. During the
fintech recent, Edmond Lau — HKMA’s senior executive director — gave
insights into the bank’s ongoing CBDC research, which has reportedly been
conducted under the aegis of “Project LionRock” since 2017.The project is
being conducted together with Hong Kong Interbank Clearing Ltd. and
three further banks, as well as blockchain consortium R3. It includes a
proof-of-concept study on token-based CBDC, research into debt securities
issuance using blockchain, an evaluation of CBDC’s potential for payment
systems and exploration of a possible two-tier issuance model, which would
allow corporates to hold and use CBDC tokens as sponsored participants of
their banks.
https://cointelegraph.com/news/hong-kong-steps-up-research-into-central-bank-digital-currency
4. Tassat Gets CFTC Approval to Issue Bitcoin Derivatives in US
New York-based financial technology firm Tassat — formerly known as trueDigital — has succeeded in overcoming the first hurdle in its bid to launch a fully-regulated crypto derivatives exchange.According to an announcement from the United States Commodity Futures Trading Commission (CFTC) on Nov. 7, the regulator has approved the transfer of a swap execution facility (SEF) registration from fellow New York-based financial services firm trueEX to Tassat.Tassat had first reached the agreement in principle to acquire — subject to CFTC approval — trueEx’s SEF registration back in July of this year. The company is now waiting for news regarding its prospective acquisition of trueEx’s Designated Contract Market (DCM) registration, which would allow it to operate an exchange listing futures or options contracts with oversight from the CFTC.
https://cointelegraph.com/news/tassat-gets-cftc-approval-to-issue-bitcoin-derivatives-in-us
3.3 Technological Breakthrough
1. Blockchain Must Solve These 3 Issues to Avoid Quantum Threat:Expert
The blockchain community should immediately begin working on three issues to prevent being overtaken by quantum computers, a cryptography expert says.Xinxin Fan, head of cryptography at privacy- and IoT-focused blockchain platform IoTeX, published an article in The International Business Times on Nov. 7, calling on the blockchain community to stay up to date about the progress being made on quantum computers.While reiterating that short-term developments in quantum computing are “modest,” Fan argued that blockchains will have to keep pace to avoid being overtaken by quantum computers as the technology grows and improves.As such, Fan outlined three major directions for the blockchain community to address as soon as possible, which are the standardization of “quantum-resistant” cryptography, cryptographic agility and blockchain governance.
https://cointelegraph.com/news/blockchain-must-solve-these-3-issues-to-avoid-quantum-threat-expert
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, HomiEx got strategic investment, ULM got strategic investment.
Huobi Research
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Huobi Research was founded in April 2016 and started research and explorations in various aspects in Blockchain area since March 2018. We cover various fields such as Blockchain technology research, industry analysis, application innovation and economic model explorations. We aim to establish a research platform and to offer theoretical foundations as well as judgements of trends in Blockchain to the public, ultimately promoting the development of the Blockchain industry.
Huobi Research Weekly aims to provide participators of the cryptocurrency market with the most up-to-date and comprehensive database to help them facilitate decision-making process.
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