Huobi Research Weekly (Vol.123) 2020.7.13–2020.7.19）
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 0.68%, with 17 projects decreased in value to varying degrees. According to coinmarketcap, as of July 19, 2020, the total market cap of cryptocurrencies was 272.7 billion U.S. dollars, decreased by 0.68%, and the total market cap of the top 100 cryptocurrencies was 269.8 billion U.S. dollars, decreased by 0.47% from last week. 8 cryptocurrency projects entered the top 100 this week, namely AOA、ICH、LUNA、XTP、RLC、SXP、KAVA、and WBTC. As of July 19, 2020, Bitcoin was traded at 9185.82USD, 0.09% lower than its price last week. Ethereum was traded at 238.49USD, 4.93% higher 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 increased and the average block size of Ethereum increased this week.The average transaction fees of Bitcoin increased and Ethereum increased. LSK was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 117.8 EH/s, decreased by 5.38% from the previous week.Average Hashrate for the entire Ethereum network was 191.43TH/s this week, increased by 0.44%. Average difficulty for mining Bitcoin this week was 17.34T, increased by 9.89% from last week. The average difficulty of mining Ethereum this week was 2406.08TH, increased by 0.63% from that of previous week.
In network activity, the average size of each block was 1.28MB, increased by 17.43% from last week; there were on average 2392 transactions recorded in each block, increased by 21.67% from the previous week. The average number of transactions per block in Ethereum this week was 167.4, increased by 6.22%. The average size of each block was 35959.00 bytes, increased by 5.68% compared to last week. As of July 19, 2020, average transaction fees of Bitcoin this week was $2.258, increased by 128.08% from last week. Average transaction fees of Ethereum this week was $0.803, incresead by 45.47%. The total number of Bitcoin addresses was 51438971 increased by 295760 (0.58%).Lisk was the most active project on GitHub this week, with 102 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, VPN Tube got strategic investment from Kr Digital Fund, Metaco got 17 million dollars in A round investment from Giesecke and Devrient lead.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 0.68%, with 17 projects decreased in value to varying degrees. According to coinmarketcap, as of July 19, 2020, the total market cap of cryptocurrencies was 272.7 billion U.S. dollars, decreased by 0.68%, and the total market cap of the top 100 cryptocurrencies was 269.8 billion U.S. dollars, decreased by 0.47% from last week, among which, AMPL had the largest increased of 790.12%, bringing its market cap ranking from №83 to №48, MIN had the largest decreased of -28.82%, bringing its market cap ranking from №55 to №63. In addition, there were 8 projects that entered TOP100, namely, ICH (Idea Chain Coin, increased 0.06%, Now №95), LUNA (Terra, increased 63.21%, Now №80), RLC (iExec RLC, increased 107.89%, Now №83), WBTC (Wrapped Bitcoin, increased 111.32%, Now №90), KAVA (Kava, increased 138.17%, Now №100), SXP (Swipe, increased 188.35%, Now №92), XTP (Tap, increased 290.05%, Now №72), AOA (Aurora, increased 436.68%, Now №86). As of July 19, 2020, Bitcoin was traded at 9185.82USD, 0.09% lower than its price last week. Ethereum was traded at 238.49USD, 4.93% higher than its price last week.
The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 11.23% compared with the same period of last week. In this week, 39 of the top 100 projects increased in 24h trading volume, led by SXP with a weekly increase of 734.40%; there were 58 projects decreased in their 24h trading volume, there were 35 projects that saw over 20% decrease in their 24h trading volume, while 6 projects fell by more than 50%, led by VEST, with a decreased of 72.06%.
The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On July 19, 2020, the overall market cap of the top 10 cryptocurrencies was 232.9 billion USD, decreased by 1.08% from last week, accounting for 85.43% of the total market capitalization of cryptocurrencies, decreased by 0.35% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 62.10%, decreased by 0.17% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Platform Project got the largest increase. The average market cap of Application Project got the largest increase. As of July 19, 2020, the total market cap of coin projects reached 192.8 billion USD, decreased by 1.17%. The average market cap of coin projects reached 4.94 billion USD, increased by 3.90%. The total market cap of platform projects reached 40.9 billion USD, increased by 1.61%. The average market cap of platform projects reached 1.32 billion USD, decreased by 8.22%. The total market cap of application class projects reached 26.4 billion USD, increased by 1.21%. The average market cap of application class projects reached 0.98 billion USD, increased by 4.95%. The total market cap of asset-backed token projects reached 9.46 billion USD, increased by 0.28%. The average market cap of asset-backed token projects reached 3.15 billion USD, increased by 0.28%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of July 19, 2020, among the top 100 projects, the number of coin class projects decrease 2, application class projects decrease 1, platform class projects increase 3 and asset-backed token class remain the same. The largest overall market cap by segment was still coin projects, accounting for 71.49% 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 July 13, 2020- July 19, 2020 ,the average bitcoin Hashrate for the entire network reached 117.8 EH/s, decreased by 5.38% from the previous week.
Average Hashrate for the entire Ethereum network was 191.43TH/s this week, increased by 0.44%.
This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of July 19, 2020, average difficulty for mining Bitcoin this week was 17.34T, increased by 9.89% from last week. The average difficulty of mining Ethereum this week was 2406.08TH, increased by 0.63% from that of previous week.
The number of blocks in Bitcoin decreased by 12.65%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased 0.27%. In the past week, Bitcoin mined 960 blocks, decreased by 12.65% from the previous week. Among the top five pools were Poolin、F2Pool、BTC.com、AntPool、Huobi.Pool, these 5 pools mined 158、137、112、110 and 97 blocks respectively, accounting for 16.46 %、14.27 %、11.67 %、11.46 % and 10.10 % of all Bitcoins mined this week. The Hashrate was 19.93EH/s、17.28EH/s、14.13EH/s、13.88EH/s and 12.24EH/s, respectively.
In the past week, Ethereum’s entire network mined 48370 blocks, increased 0.35% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Zhizhu.top and Nanopool, each mined 14151、10048、4175、3952 and 2553 blocks respectively, accounting for 29.2557%、20.7732%、8.6314%、8.1704% and 5.2781% of all Ethereum mined this week, respectively.
2.2 Activity Statistics
The average number of transactions per block increased and the average block size of Bitcoin increased. The average number of transactions per block increased and the average block size of Ethereum increased this week. According to blockchain.info, from July 13, 2020- July 19, 2020, the average size of each block was 1.28MB, increased by 17.43% from last week; there were on average 2392 transactions recorded in each block, increased by 21.67% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 167.4, increased by 6.22%. The average size of each block was 35959.00 bytes, increased by 5.68% compared to last week.
Number of unconfirmed transactions in Bitcoin increased by 221.25%. Number of unconfirmed transactions in Ethereum increased by 9.96% from the previous week. As of July 19, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 8224, increased by 221.25% from last week. There were 143526.29 unconfirmed transactions in the Ethereum network, increased by 9.96% from last week, with the lowest amount of unconfirmed transactions in the week being 47088 and the highest amount being 170104.
Total transaction fees of Bitcoin increased and Ethereum increased. As of July 19, 2020, average transaction fees of Bitcoin this week was $2.258, increased by 128.08% from last week. Average transaction fees of Ethereum this week was $0.803, incresead by 45.47%.
The average number of distinct miners per day in Ethereum increased by 0.20% from last week. From July 13, 2020- July 19, 2020, the average number of distinct miners per day in Ethereum this week was 51.1, increased by 0.20% from last week.
The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum increased this week. As of July 19, 2020, there were Bitcoin nodes, decreased by 1.98% compared to last week, of which 1881 nodes were in the U.S, 1772 nodes were Germany, and 183 nodes were in China(№10), each accounting for 18.37%, 17.30% and 1.79% of the total number of Bitcoin nodes, respectively.
As of July 19, 2020, there were 8190 Ethereum nodes, increased by 10.23% from the previous week. Specifically, there were 2158 nodes in the U.S, 1151 nodes in China, and 878 nodes in Germany, each accounting for 26.35%, 14.05%, 10.72% 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 July 19, 2020, the total number of Bitcoin addresses was 51438971 increased by 295760 (0.58%).
LSK was the most active project on GitHub this week. From July 13, 2020 — July 19, 2020, Lisk was the active project repository on GitHub with a total of 102 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 958k, 609k and 172k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 951.9k, and 514k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. J.M. Smucker Uses IBM Blockchain to Trace Coffee Beans for 1850 Brand
The J.M. Smucker Company, also known as Smucker’s, has announced that it will use blockchain technology to trace Colombian coffee beans directly back to their source while allowing consumers the opportunity to support coffee farmers.The American food manufacturer has formed a partnership with Farmer Connect — an organization committed to increasing transparency and sustainability in agriculture supply chains — to leverage IBM’s blockchain technology to trace the coffee beans of Smucker’s popular 1850 Coffee brand. Tina Meyer-Hawkes, the vice president of marketing for coffee at J.M. Smucker’s, told Cointelegraph that the move is all about providing transparency:“By providing transparency of our supply chain, we are enabling the consumer to see the journey of their coffee from the region it was produced, to the mill, to exporters and importers.” J.M. Smucker’s can establish their own network to solve the major transparency problem facing the coffee industry while leveraging the scalability, security and robustness of the technology that drives IBM’s Food Trust platform.
2. Blockchain Could Help to Boost Global Jobs Creation
A report published by the World Economic Forum, or WEF, highlighted the critical role of fourth industrial revolution technologies. New technologies like blockchain could help stimulate growth by implementing “nature-positive” solutions following the COVID-19 outbreak.According to the “Future of Nature and Business” study shared with Cointelegraph, nature-friendly solutions could have the capacity to create 395 million jobs and generate $10.1 trillion in business opportunities by 2030.Inger Andersen, United Nations Under-Secretary-General and Executive Director of the UN Environment Program, commented on the matter:“As we enter into a historic decade of action to halt and reverse biodiversity loss by 2030 and address climate change, business has a critical role to play in environmental stewardship of our planet. They have the technology, innovation and financing to make the shifts we need towards increased investment in nature’s infrastructure and nature-based solutions.”
3. Singapore’s Blockchain Payments Platform Ready for Commercial Launch
Singapore authorities announced today that their blockchain payments project, Project Ubin, is complete and ready for commercial launch. The Monetary Authority of Singapore, or MAS, first undertook Project Ubin in 2017 with plans to first develop a digitized Singapore dollar (SGD). The next steps involved exploring blockchain and distributed ledger technology to build a system for the clearing and settlement of payments and securities using digital SGD.For the final phase of the project, MAS worked in collaboration with the Singapore-based investment company Temasek and the American investment bank JPMorgan. MAS had successfully completed the development of the payments network prototype in November 2019. The authority has since been testing the system for its ability to function smoothly with commercial blockchain applications.According to MAS’s official announcement, the payments network will provide an interface for “other blockchain networks to connect and integrate seamlessly.” Among other use cases, the system will allow for faster and cheaper cross-border payments in multiple currencies, foreign currency exchange, and settlement of currency-denominated securities, reported Reuters.
3.2 International Policies
1. Bank of Thailand Progresses With Digital Baht Tests Before Public Launch
Thailand’s central bank has reportedly entered a new phase in the development of its central bank digital currency, or CBDC.The Bank of Thailand, or BOT, has reportedly deployed its CBDC, and has been using the digital currency for financial transactions with some large businesses, local English-language newspaper The Nation reports July 16. The bank has entered the third phase in development of the digital baht and plans to expand to more businesses, BOT assistant governor, Vachira Arromdee, reportedly announced on Wednesday.According to the report, the BOT is planning to roll out the digital currency for transactions with Hong Kong’s central bank, the Hong Kong Monetary Authority, in September 2020.Thailand’s central bank is also thinking to expand the use of the digital baht to the general public to reduce the cost of financial transactions, Vachira said. However, the BOT first needs to carry out a comprehensive study to prevent the potential negative impacts on commercial banks, the executive noted.
2. US FDA Considers Blockchain for Food Security
The United States Food and Drug Administration released a blueprint and pilot study for food safety, highlighting blockchain as a viable option for some of the identified challenges. The blueprint, released earlier this week, breaks down some of the challenges facing food distribution throughout the country and looks at how smart technologies could solve them:“Our world is evolving at a breakneck pace. With this evolution comes new technologies, ranging from new digital tools to new sources of food ingredients. […] These advances provide new tools and approaches for tackling food safety issues, but also present new issues to consider in determining how to regulate food safety.”The technologies mentioned include artificial intelligence, the Internet of Things, sensor technologies and blockchain, and are looked at in relation to four topics: tech-enabled traceability, prevention and outbreak response, retail modernization and food safety culture.Blockchain technology is mentioned specifically in relation to receiving “critical tracking events and key data elements from industry and regulatory partners.”
3. Japanese Government Set to Include CBDC in Official Economic Plan
The Japanese government is expected to include consideration of a central bank digital currency (CBDC) in its official economic plan. The news comes 10 days after the Bank of Japan’s announcement that it will start experimenting with the digital yen to check its feasibility from a technical perspective.According to Nikkei, the consideration of CBDC will be included in the Honebuto Plan for Economic and Fiscal Revitalization. The Honebuto Plan is the basis for Japan’s economic and fiscal policy and the report says the Japanese government “will consider a CBDC while coordinating with other countries”. Kozo Yamamoto, Liberal Democratic Party (LDP) Member of the House of Representatives and a former official at the Ministry of Finance urged Japan to implement CBDC fast: “If Japan doesn’t issue a digital currency and people in the world use other digital currencies, the Japanese yen will be forgotten and lose its sovereignty”.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, VPN Tube got strategic investment from Kr Digital Fund, Metaco got 17 million dollars in A round investment from Giesecke and Devrient lead.
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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.
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