Huobi Research Weekly (Vol.131) 2020.9.7–2020.9.13）
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 1.81%, with 70 projects decreased in value to varying degrees. According to coinmarketcap, as of September 13, 2020, the total market cap of cryptocurrencies was 336.4 billion U.S. dollars, increased of 1.81%, and the total market cap of the top 100 cryptocurrencies was 330.0 billion U.S. dollars, increased by 1.88% from last week. 4 cryptocurrency projects entered the top 100 this week, namely GNT、REV、RVN and STX. As of September 13, 2020, Bitcoin was traded at 10323.76USD, 0.46% higher than its price last week. Ethereum was traded at 365.57USD, 3.54% higher than its price last week.
The hashrate of Bitcoin increased and Ethereum increased by this week. This week, the difficulty of mining Bitcoin decreased but the difficulty of mining Ethereum increased. The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block decreased and the average block size of Ethereum decreased this week.The average transaction fees of Bitcoin decreased and Ethereum decreased. LISK was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 131.9EH/s, increased by 7.41% from the previous week.Average Hashrate for the entire Ethereum network was 240.33TH/s this week, increased by 6.13%. Average difficulty for mining Bitcoin this week was 17.34T, as same as last week. The average difficulty of mining Ethereum this week was 3028.08TH, increased by 6.46% from that of previous week.
In network activity, the average size of each block was 1.06MB, decreased by 17.19% from last week; there were on average 1766 transactions recorded in each block, decreased by 23.52% from the previous week. The average number of transactions per block in Ethereum this week was 161.7, decreased by 9.06%. The average size of each block was 36772.57 bytes, decreased by 6.88% compared to last week. Average transaction fees of Bitcoin this week was $2.011, decreased by 46.90% from last week. Average transaction fees of Ethereum this week was $2.967, decresead by 60.79%. The total number of Bitcoin addresses was 53587633 increased by 231359 (0.43%). Lisk was the most active project on GitHub this week, with 43 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, BPassword got angel round investment from Eagles Fund、Chaincode technology, Phala Network got strategic investment from Candaq Group，IOSG Ventures，SNZ etc.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 1.81%, with 70 projects decreased in value to varying degrees. According to coinmarketcap, as of September 13, 2020, the total market cap of cryptocurrencies was 336.4 billion U.S. dollars, increased of 1.81%, and the total market cap of the top 100 cryptocurrencies was 330.0 billion U.S. dollars, increased by 1.88% from last week, among which, BUSD had the largest increased of 54.99%, bringing its market cap ranking from №74 to №58, BTRS had the largest decreased of -46.23%, bringing its market cap ranking from №66 to №94. In addition, there were 4 projects that entered TOP100, namely, RVN (Ravencoin, increased 0.54%, Now №99), GNT (Golem, increased 8.20%, Now №100), STX (Blockstack, increased 11.45%, Now №97), REV (Revain, increased 47.59%, Now №99). As of September 13, 2020, Bitcoin was traded at 10323.76USD, 0.46% higher than its price last week. Ethereum was traded at 365.57USD, 3.54% higher than its price last week.
The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 11.78% compared with the same period of last week. In this week, 44 of the top 100 projects increased in 24h trading volume, led by XMR with a weekly increase of 13356.84%; there were 56 projects decreased in their 24h trading volume, there were 42 projects that saw over 20% decrease in their 24h trading volume, while 10 projects fell by more than 50%, led by SUSHI, with a decreased of -79.00%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On September 13, 2020, the overall market cap of the top 10 cryptocurrencies was 281.2 billion USD, increased by 1.50% from last week, accounting for 83.59% of the total market capitalization of cryptocurrencies, decreased by 0.25% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 56.73%, decreased by 0.76% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Application Project got the largest increase. The average market cap of Platform Project got the largest increase. As of September 13, 2020, the total market cap of coin projects reached 222.2 billion USD, increased by 0.91%. The average market cap of coin projects reached 5.29 billion USD, decreased by 1.49%. The total market cap of platform projects reached 59.0 billion USD, increased by 3.24%. The average market cap of platform projects reached 1.96 billion USD, increased by 6.68%. The total market cap of application class projects reached 33.4 billion USD, increased by 5.00%. The average market cap of application class projects reached 1.33 billion USD, increased by 5.00%. The total market cap of asset-backed token projects reached 15.3 billion USD, increased by 4.28%. The average market cap of asset-backed token projects reached 5.10 billion USD, increased by 4.28%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of September 13,2020 among the top 100 projects, the number of coin class projects increase 1, application class projects remain the same, platform class projects decrease 1,and asset-backed token class reamin the same.The largest overall market cap by segment was still coin projects, accounting for 67.33% 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 increased and Ethereum increased by this week. From September 7, 2020- September 13, 2020 ,the average bitcoin Hashrate for the entire network reached 131.9EH/s, increased by 7.41% from the previous week.
Average Hashrate for the entire Ethereum network was 240.33TH/s this week, increased by 6.13%.
This week, the difficulty of mining Bitcoin decreased but Ethereum increased. As of September 13, 2020, average difficulty for mining Bitcoin this week was 17.34T, decreased by 1.20% from last week. The average difficulty of mining Ethereum this week was 3028.08TH, increased by 6.46% from that of previous week.
The number of blocks in Bitcoin increased by 11.27%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks increased 0.07%. In the past week, Bitcoin mined 1106 blocks, increased by 11.27% from the previous week. Among the top five pools were BTC.com、F2Pool、Poolin、Huobi.pool AntPool, these 5 pools mined 182、163、109、105 and 77 blocks respectively, accounting for 16.46%、14.74%、12.57%、9.86% and 9.49% of all Bitcoins mined this week. The Hashrate was 22.45EH/s、20.11EH/s、17.15EH/s、13.45EH/s and 12.95EH/s, respectively.
In the past week, Ethereum’s entire network mined 48878 blocks, increased 0.07% from the previous week. The top five pools were SparkPool, Ethermine, ,F2pool, Zhizhu.top, and Nanopool, each mined 11617、10811、4409、3989 and 2769 blocks respectively, accounting for 23.7673%、22.1183%、9.0204%、8.1611% and 5.6651% of all Ethereum mined this week, respectively.
2.2 Activity Statistics
The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from September 7, 2020- September 13, 2020, the average size of each block was 1.06MB, decreased by 17.19% from last week; there were on average 1766 transactions recorded in each block, decreased by 23.52% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 161.7, decreased by 9.06%. The average size of each block was 36772.57 bytes, decreased by 6.88% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 47.87%. Number of unconfirmed transactions in Ethereum increased by 2.03% from the previous week. As of September 13, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 3071, decreased by 47.87% from last week. There were 153299.62 unconfirmed transactions in the Ethereum network, increased by 2.03% from last week, with the lowest amount of unconfirmed transactions in the week being 96912 and the highest amount being 167113.
Total transaction fees of Bitcoin decreased and Ethereum decreased. As of September 13, 2020, average transaction fees of Bitcoin this week was $2.011, decreased by 46.90% from last week. Average transaction fees of Ethereum this week was $2.967, decresead by 60.79%.
The average number of distinct miners per day in Ethereum increased by 5.71% from last week. From September 7, 2020- September 13, 2020, the average number of distinct miners per day in Ethereum this week was 55.5, increased by 5.71% from last week.
The number of nodes in Bitcoin increased ,The number of nodes in Ethereum decreased this week. As of September 13, 2020, there were 10176 Bitcoin nodes, increased by 39.51% compared to last week, of which 1786 nodes were in the Germany, 1737 nodes were U.S, and 183 nodes were in China(№11), each accounting for 17.55% and 17.07% of the total number of Bitcoin nodes, respectively.
As of September 13, 2020, there were 8137 Ethereum nodes, decreased by 10.83% from the previous week. Specifically, there were 2164 nodes in the U.S, 1065 nodes in China, and 867 nodes in Germany, each accounting for 26.59%, 13.09%, 10.66% 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 September 13, 2020, the total number of Bitcoin addresses was 53587633 increased by 231359 (0.43%).
LISK was the most active project on GitHub this week. From September 7, 2020 — September 13, 2020, Lisk was the active project repository on GitHub with a total of 43 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 956k, 623k and 178k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 967k, and 530k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Blockchain-powered ‘Smart Brain’ to govern China’s new ‘Aerospace City’
Singapore-based blockchain data firm CyberVein has become one of 12 firms participating in the construction of China’s Hainan Wenchang International Aerospace City.Construction commenced last month, with the site previously hosting a satellite launch center. Described as “China’s first aerospace cultural and tourism city,” it will be a hub for the development of aerospace products and support services intended for use in Chinese spacecraft and satellite launch missions.The 12-million-square-meter facility will host the country’s first aerospace super-computing center, and will focus on developing 40 technological areas including big data, satellite remote sensing and high precision positioning technology.CyberVein will work alongside major Chinese firms, including Fortune 500 company Huawei, and will leverage its blockchain, artificial intelligence and big data technologies to support the development of the city’s Smart Brain Planning and Design Institute.According to a CyberVein release, Smart Brain is its primary project, a “data-driven governance system” based on the firm’s proprietary technology that will process real-time data to “organize urban public resources.”
2. South Korean government agency to use blockchain-based employee ID system
The Korea Internet & Security Agency, or KISA, is the first public entity of South Korea to implement a blockchain-powered employee ID system through a smartphone app starting October.According to Yonhap, the agency will also issue tokens called “KISA Coin” to reward KISA’s best employees, enabling them to purchase snacks, beverages, and even office supplies. It is currently being pilot tested, with the expectation to make it available for the entire workforce.The new employee ID system will allow KISA’s workers to use near field communication technology, or NFC, by scanning QR codes to access their respective workplaces via a blockchain platform that will handle the database. But the new system is not limited to ID authentication, as the employees are required to use it for accessing the coffee shops in the agency or borrowing books from the library as well. In other recent developments on blockchain adoption across the country, Daegu, the fourth-largest city in South Korea, recently announced its plans to allocate over $6 million towards blockchain and artificial intelligence education.
3. Vale completes iron ore transaction through blockchain
Mining firm Vale and its partners completed its first iron sale over blockchain.According to a statement on its website, Vale sold 176,000 tons of iron ore to Nanjing Iron & Steel, sending the material from Malaysia to China.Vale and its partners used the blockchain platform Contour to issue a letter of credit. Shipping documents and an electronic bill of lading — a list of all the goods shipped — were handled through essDOC’s CargoDocs solution. The company said it ensured end-to-end security in the transaction with the real-time visibility to the stakeholder documentation available on blockchain technology. Vale noted using blockchain drastically reduced emails and paperwork the parties had to exchange. “It is an important milestone towards the digitalisation of the sales and trade process, bringing innovation to the traditional paper-intensive trade transactions and offering a better service to the clients as well as predictability in the steel value chain,” the company said in the statement.
3.2 International Policies
1. New Swiss laws provide solid ground for blockchain and crypto
Swiss parliamentarians on Thursday passed a new set of finance and corporate law amendments that recognize the blockchain and cryptocurrency industry. The new set of laws define the legalities of exchanging digital securities and also the legal process of reclaiming digital assets from companies that go bankrupt. It further defines the legal requirements for running cryptocurrency trading exchanges such that it may mitigate the risks of money laundering using cryptos. It is likely that the new form of the existing laws will come into effect early next year. With that, the blockchain and cryptocurrency industry and decentralized finance are expected to gain a massive boost in Switzerland.At present, Switzerland is home to more than 900 blockchain and cryptocurrency companies, including Facebook’s Libra, that employ approximately 4,700 people. The European nation, mostly known for its beautiful alpine landscapes and luxury goods, has been a major player in the world of banking and finance. It has also been quick to adopt blockchain and cryptocurrency and has since supported both existing and new companies to experiment with the technology.Alongside the government trying to push blockchain and cryptocurrency innovation, many public and private sector companies in Switzerland are also experimenting with this technology.
2. Bangladesh to get its first blockchain remittance service
The South Asian nation of Bangladesh will soon get its first blockchain remittance system that will allow Bangladeshi expats in Malaysia to instantly transfer wage remittances to their home country.According to a report from The Business Standard, the British national banking service firm Standard Chartered Bank (SCB) today announced the blockchain-based cross-border remittance service for Bangladesh.SCB developed the remittance service in collaboration with the Bangladesh-based mobile banking platform bKash and the Malaysian remittance provider Valyou. It utilizes the blockchain technology of Ant Group, the financial arm of the Chinese business conglomerate Alibaba Group. Naser Ezaz Bijoy, CEO of Standard Chartered Bank, Bangladesh, said that remittances were an important driver for the Bangladesh economy and supported millions of families. The launch of an instant remittance system available 24/7, he said, would make the transfer process more convenient for remitters.
3. All fintech companies will use blockchain within 10 years: Aussie government report
The Australian government’s Senate Select Committee on Financial Technology and Regulatory Technology has released a draft report citing blockchain technology more than 50 times. There are dozens of references to blockchain and distributed ledger technology and the report cites submissions to the committee that blockchain’s potential is “estimated at $175 billion annually within five years and $3 trillion by 2030”. It quoted Piper Alderman partner Michael Bacina as saying blockchain’s use cases would grow exponentially across the financial and regulatory sectors:Most fintech and regtech projects will either be built predominantly on distributed ledger technology or blockchain or heavily using that within the next 10 years. The tax treatment of Initial Coin Offerings (ICOs) was addressed specifically with the recommendation that the regulatory framework around ICOs be developed to encourage blockchain development rather than inhibit it. The technology will also play an integral part in Australia’s farming success through agricultural advancements, a sector set to grow to $100 billion by 2030 according to the National Farmers Federation.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, BPassword got angel round investment from Eagles Fund、Chaincode technology, Phala Network got strategic investment from Candaq Group，IOSG Ventures，SNZ etc.
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