Huobi Research Weekly (Vol.119) 2020.6.15–2020.6.21）
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 0.16%, with 63 projects decreased in value to varying degrees. According to coinmarketcap, as of June 21, 2020, the total market cap of cryptocurrencies was 265.6 billion U.S. dollars, decreased by 0.16%, and the total market cap of the top 100 cryptocurrencies was 262.7 billion U.S. dollars, decreased by 0.65% from last week. 4 cryptocurrency projects entered the top 100 this week, namely NEXO、CHSB、DIVI and ICH. As of June 21, 2020, Bitcoin was traded at 9303.63USD, 0.85% lower than its price last week. Ethereum was traded at 228.99USD, 2.11% lower than its price last week.
The hashrate of Bitcoin decreased but Ethereum increased by this week. This week, the difficulty of mining Bitcoin increased and the difficulty of mining Ethereum increased. The average number of transactions per block increased and the average block size of Bitcoin increased. The average number of transactions per block decreased but the average block size of Ethereum increased this week.The average transaction fees of Bitcoin increased and Ethereum increased. ZSC was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 105.9 EH/s, decreased by 8.71% from the previous week.Average Hashrate for the entire Ethereum network was 184.70TH/s this week, increased by 0.81%. Average difficulty for mining Bitcoin this week was 15.78T, as same as last week. The average difficulty of mining Ethereum this week was 2320.62TH, increased by 0.83% from that of previous week.
In network activity, the average size of each block was 1.11MB, increased 3.74% form last week; there were on average 2074 transactions recorded in each block, increased by 16.98% from the previous week. The average number of transactions per block in Ethereum this week was 138.8, decreased by 2.32%. The average size of each block was 28903.71 bytes, increased by 0.06% compared to last week. As of June 21, 2020, average transaction fees of Bitcoin this week was $0.986, increased by 38.68% from last week. Average transaction fees of Ethereum this week was $0.475, incresead by 4.63%. The total number of Bitcoin addresses was 50325322 increased by 267040 (0.53%). Zeusshield was the most active project on GitHub this week, with 69 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 investments activities took place in the blockchain industry this week, Hapramp got 1 million dollars strategic investment from Anand Mahindra, NerveNetwork got strategic investment from BitZ.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 0.16%, with 63 projects decreased in value to varying degrees. According to coinmarketcap, as of June 21, 2020, the total market cap of cryptocurrencies was 265.6 billion U.S. dollars, decreased by 0.16%, and the total market cap of the top 100 cryptocurrencies was 262.7 billion U.S. dollars, decreased by 0.65% from last week, among which, TNC had the largest increased of 115.63%, bringing its market cap ranking from №79 to №47, DGB had the largest decreased of -20.05%, bringing its market cap ranking from №38 to №44. In addition, there were 4 projects that entered TOP100, namely, DIVI (Divi, increased 16.54%, Now №94), CHSB (SwissBorg, increased 36.89%, Now №85), ICH (Idea Chain Coin, increased 45.41%, Now №93), NEXO (Nexo, increased 46.56%, Now №78). As of June 21, 2020, Bitcoin was traded at 9303.63USD, 0.85% lower than its price last week. Ethereum was traded at 228.99USD, 2.11% lower than its price last week.
The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 16.55% compared with the same period of last week. In this week, 38 of the top 100 projects increased in 24h trading volume, led by TNC with a weekly increase of 302.06%; there were 61 projects decreased in their 24h trading volume, there were 19 projects that saw over 20% decrease in their 24h trading volume, while 5 projects fell by more than 50%, led by ICH, with a decreased of 90.42%.
The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On June 21, 2020, the overall market cap of the top 10 cryptocurrencies was 231.3 billion USD, decreased by 1.16% from last week, accounting for 87.11% of the total market capitalization of cryptocurrencies, decreased by 0.88% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 64.49%, decreased by 0.45% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Platform Project got the largest decrease. The average market cap of Coin Project got the largest decrease. As of June 21, 2020, the total market cap of coin projects reached 194.5 billion USD, decreased by 0.26%. The average market cap of coin projects reached 4.86 billion USD, decreased by 10.23%. The total market cap of platform projects reached 35.8 billion USD, decreased by 1.95%. The average market cap of platform projects reached 1.43 billion USD, increased by 5.89%. The total market cap of application class projects reached 22.8 billion USD, decreased by 1.94%. The average market cap of application class projects reached 0.71 billion USD, increased by 4.19%. The total market cap of asset-backed token projects reached 9.45 billion USD, decreased by 0.40%. The average market cap of asset-backed token projects reached 3.15 billion USD, decreased by 0.40%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of June 21, 2020, among the top 100 projects, the number of coin class projects increase 4, application class projects decrease 2, platform class projects decrease 2 and asset-backed token class remain the same. The largest overall market cap by segment was still coin projects, accounting for 74.03% 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 but Ethereum increased by this week. From June 15, 2020- June 21, 2020 ,the average bitcoin Hashrate for the entire network reached 105.9 EH/s, decreased by 8.71% from the previous week.
Average Hashrate for the entire Ethereum network was 184.70TH/s this week, increased by 0.81%.
This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of June 21, 2020, average difficulty for mining Bitcoin this week was 15.78T, increaesd by 14.93% from last week. The average difficulty of mining Ethereum this week was 2320.62TH, increased by 0.83% from that of previous week.
The number of blocks in Bitcoin decreased by 13.08%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks increased 1.11%. In the past week, Bitcoin mined 1139 blocks, increased by 6.75% from the previous week. Among the top five pools were F2Pool、Poolin、BTC.com、AntPool、Huobi.Pool, these 5 pools mined 201、140、125、94 and 74 blocks respectively, accounting for 20.30 %、14.14%、12.63%、9.49% and 7.43% of all Bitcoins mined this week. The Hashrate was 21.48 EH/s、14.96EH/s、13.36EH/s、10.05EH/s and 7.91EH/s, respectively.
In the past week, Ethereum’s entire network mined 48671 blocks, increased 1.11% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Zhizhu.top and Nanopool, each mined 14552、10333、4508、3280 and 2959 blocks respectively, accounting for 29.8987%、21.2303%、9.2622%、6.7391% and 6.0796% of all Ethereum mined this week, respectively.
2.2 Activity Statistic
The average number of transactions per block increased and the average block size of Bitcoin increased. The average number of transactions per block increased but the average block size of Ethereum decreased this week. According to blockchain.info, from June 15, 2020-June 21, 2020, the average size of each block was 1.11MB, increased 3.74% form last week; there were on average 2074 transactions recorded in each block, increased by 16.98% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 138.8, decreased by 2.32%. The average size of each block was 28903.71 bytes, increased by 0.06% compared to last week.
Number of unconfirmed transactions in Bitcoin increased by 95.57%. Number of unconfirmed transactions in Ethereum decreased by 1.20% from the previous week. As of June 21, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 4416, increased by 95.57% from last week. There were 101458.9 unconfirmed transactions in the Ethereum network, decreased by 1.20% from last week, with the lowest amount of unconfirmed transactions in the week being 65037 and the highest amount being 111501.
Total transaction fees of Bitcoin increased and Ethereum increased. As of June 21, 2020, average transaction fees of Bitcoin this week was $0.986, increased by 38.68% from last week. Average transaction fees of Ethereum this week was $0.475, incresead by 4.63%.
The average number of distinct miners per day in Ethereum decreased by 6.64% from last week. From June 15, 2020- June 21, 2020, the average number of distinct miners per day in Ethereum this week was 47.8, decreased by 6.64% from last week.
The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum increased this week. As of June 21, 2020, there were 10613 Bitcoin nodes, decreased by 0.05% compared to last week, of which 1988 nodes were in the U.S, 1800 nodes were Germany, and 188 nodes were in China(№10), each accounting for 18.73%, 16.96% and 1.77% of the total number of Bitcoin nodes, respectively.
As of June 21, 2020, there were 8208 Ethereum nodes, increased by 19.44% from the previous week. Specifically, there were 2183 nodes in the U.S, 1150 nodes in China, and 848 nodes in Germany, each accounting for 26.60%, 14.01%, 10.33% of total number of nodes, respectively.
This week, the growth rate for new addresses of Bitcoin increased. According to the data on blockchain, as of June 21, 2020, the total number of Bitcoin addresses was 50325322 increased by 267040 (0.53%).
ZSC was the most active project on GitHub this week. From June 15, 2020 — June 21, 2020, Zeusshield was the active project repository on GitHub with a total of 69 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 961k, 596k and 168k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 951.6k, and 508k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Tokyo Power Company to Use Blockchain for Trading Electricity Surplus
Tokyo Electric Power Company Holdings Inc., or Tepco, partnered with major Japanese trading company Itochu Corporation and started building a blockchain-based system to trade surplus electricity. According to Nikkei on June 18, the new system will be available to households in Japan within three years. The firms plan to collaborate with local governments and start a proof-of-concept by March 2021. Tepco and Itochu will give households AI-based storage batteries and solar panels for free. The AI technology controls the amount of generated and consumed energy and calculates surpluses for trading.Blockchain technology will be used to enhance “the safety of communication.” The energy trading system appears to be similar to Tepco and Itochu’s. Blockchain technology tracks energy consumption while AI enables users to sell surplus to other residents.
2. Samsung-Backed Blocko to Build Blockchain-Based Credit System for Arab Bank
The research arm of Saudi Arabia’s Islamic Development Bank Group is aiming to develop a blockchain-based smart credit management system.To achieve this, the bank’s Islamic Research and Training Institute, or IRTI, has partnered with the Samsung-backed blockchain provider Blocko. Unlike traditional financial organizations, Islamic banks do not charge interest on loans or penalise loan defaulters. They rather charge a late fee that is purportedly donated to charity. However, this approach is not without its problems, as it eliminates the urgency for borrowers to pay back their loans. Additionally, such banks also face the difficulty of efficiently distributing the late fees to charity. The smart credit management system being developed by E24P and IRTI, which will be based on the Aergo hybrid blockchain, is expected to put an incentive mechanism in place that will encourage timely repayments. It will also automatically contribute the fees to insurance pools that cover loan defaults. The blockchain credit system is said to help both Islamic banks and other financial institutions conduct credit assessments in a more secure and transparent manner, without compromising on the privacy of the involved parties. The CEO of E24P Phil Zamani, said that the system will help banks “deliver a truly unique solution that has the potential to have a significant impact on the world of Islamic finance.”
3. IBM Pilots Blockchain Solution For Primary Teachers’ Pensions in Bangladesh
IBM has announced an initiative to build a distributed ledger technology, or DLT, based architecture to underpin the digital pension system for Bangladeshi primary school teachers.The proof-of-concept comprises a permissioned network of teachers and other stakeholders powered by the IBM Blockchain Platform, with pension information uploaded to the blockchain to ensure tamper-resistant record-keeping and offer security assurances to teachers participating in GBB’s e-pension system.The pilot is being conducted in partnership with the Bangladesh Computer Council, BCC, a government overseeing IT policy in the country.IBM’s blockchain platform is slated to host the live version of the digital pension infrastructure. BCC’s executive director, Parthapratim Deb said that the pilot will inspire further blockchain initiatives from the Bangladeshi government, stating: “Its success will likely encourage other agencies to explore applications for our core blockchain platform, furthering BCC’s mission of transforming governmental digital services.”
4. IBM Pilots Blockchain Solution For Primary Teachers’ Pensions in Bangladesh
The New York Times publication has revealed the successful completion of a trial for a new blockchain-based system to detect misinformation.According to a June 12 blog post, the publisher built a prototype to provide reliable metadata on various pictures found online. Often, pictures taken in a different location at a different time will be used in connection with unrelated events. Through the platform, readers and social media users will be able to know who took the picture and when.Technologically, the system used an IBM blockchain platform developed directly by IBM Garage, to ensure that the data remains tamper-proof. The system requires a permissioned enterprise blockchain “to ensure the right members of the network have the appropriate permissions for the metadata,” the blog post explained.Following user feedback, the New York Times team realized that in addition to knowing when the picture was taken, readers are also interested in knowing where it appeared earlier.
3.2 International Policies
1. WEF Hopes to Stamp Out Corruption With Colombian Blockchain Trial
The World Economic Forum (WEF) hopes to make corrupt activity in the public sector more difficult using blockchain technology. “Corruption is a ‘high-potential’ space for blockchain because you really benefit from decentralization; records are very difficult to remove or censor, for instance,” WEF blockchain project lead Ashley Lannquist told Cointelegraph. Lannquist is one of the authors behind a June report detailing how the WEF, the Office of the Inspector General of Colombia and the Inter-American Development Bank have formed, “a multistakeholder team to investigate, design and trial the use of blockchain technology for corruption-prone government processes.” The report states that shady dealings plague the public sectors of many countries — but increased transparency, public accountability and proper documentation are solutions. Blockchain is one way to do so. Known as the Transparency Project, the WEF’s multi-entity endeavor looks for specific applications in public procurement. The group will harness a permissionless version of the Ethereum blockchain for the job.
2. Belarus Banks Announce Upcoming Token Pilot Program
On June 10, 12 Belarus’ commercial and state-owned banks received permission from the national central bank to issue digital tokens. They will distribute these digital offerings through an upcoming pilot program.According to Sputnik Belarus, the country has adopted Decree №8, “On the development of the digital economy,” giving the power to the Belarus National Bank to implement the banks’ digital economy dynamics.The governmental framework creates the legal environment required for initial coin offerings, or ICOs, across Belarus. The pilot program will run from January 1, 2021, to January 1, 2024. The pilot program will take place in Hi-Tech Park, a Minsk-based blockchain free trade zone and the home of several crypto mining centers.The report adds that the National Bank gave banks the authority to raise funds from their ICOs in Belarusian rubles from domestic individuals or companies.However, the central bank stated that bank entities would not be allowed to receive crypto during the pilot program. Non-citizens could still buy tokens using national or foreign fiat money.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, Hapramp got 1 million dollars strategic investment from Anand Mahindra, NerveNetwork got strategic investment from BitZ.
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