Huobi Research Weekly (Vol.137) (2020.10.19–2020.10.25)
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 10.05%, with 53 projects increased in value to varying degrees. According to coinmarketcap, as of October 25, 2020, the total market cap of cryptocurrencies was 396.3 billion U.S. dollars, increased of 10.05%, and the total market cap of the top 100 cryptocurrencies was 386.7 billion U.S. dollars, increased by 9.81% from last week. 4 cryptocurrency projects entered the top 100 this week, namely OXT、AMPL、FXC and MONA. As of October 25, 2020, Bitcoin was traded at 13031.17USD, 13.31% higher than its price last week. Ethereum was traded at 406.22USD, 7.25% 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 decreased and the average block size of Ethereum decreased this week.The average transaction fees of Bitcoin increased and Ethereum increased. LISK was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 133.5EH/s, decreased by 7.48% from the previous week.Average Hashrate for the entire Ethereum network was 264.12TH/s this week, increased by 0.55%. Average difficulty for mining Bitcoin this week was 19.99T, increased by 2.41% from last week. The average difficulty of mining Ethereum this week was 3339.76TH, increased by 0.82% from that of previous week.
In network activity, the average size of each block was 1.34MB, increased by 30.10% from last week; there were on average 2018 transactions recorded in each block, increased by 15.18% from the previous week. The average number of transactions per block in Ethereum this week was 169.1, decreased by 0.59%. The average size of each block was 37366.57 bytes, decreased by 0.01% compared to last week. Average transaction fees of Bitcoin this week was $3.987, increased by 172.52% from last week. Average transaction fees of Ethereum this week was $0.921, incresead by 1.77%. The total number of Bitcoin addresses was 55364970 increased by 334667 (0.61%). Lisk was the most active project on GitHub this week, with 56 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, CasperLabs got 14 million dollars in strategic investment from DigitalStrategies leading, Content Value Network got strategic investment from CWV.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 10.05%, with 53 projects increased in value to varying degrees. According to coinmarketcap, as of October 25, 2020, the total market cap of cryptocurrencies was 396.3 billion U.S. dollars, increased of 10.05%, and the total market cap of the top 100 cryptocurrencies was 386.7 billion U.S. dollars, increased by 9.81% from last week, among which, FXC had the largest increased of 313.69%, bringing its market cap ranking from №185 to №80, CRO had the largest decreased of -19.75%, bringing its market cap ranking from №13 to №15. In addition, there were 4 projects that entered TOP100, namely, OXT (Orchid, increased 1.87%, Now №95), MONA (MonaCoin, increased 10.69%, Now №96), AMPL (Ampleforth, increased 30.57%, Now №87), FXC (Flexacoin, increased 313.69%, Now №80). As of October 25, 2020, Bitcoin was traded at 13031.17USD, 13.31% higher than its price last week. Ethereum was traded at 406.22USD, 7.25% higher than its price last week.
The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 20.70% compared with the same period of last week. In this week, 69 of the top 100 projects increased in 24h trading volume, led by FXC with a weekly increase of 1042.20%; there were 31 projects decreased in their 24h trading volume, there were 13 projects that saw over 20% decrease in their 24h trading volume, while 4 projects fell by more than 50%, led by YFI, with a decreased of -93.69%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On October 25, 2020, the overall market cap of the top 10 cryptocurrencies was 340.1 billion USD, increased by 11.16% from last week, accounting for 85.81% of the total market capitalization of cryptocurrencies, increased by 0.86% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 60.91%, increased by 1.75% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Coin Project got the largest increase. The average market cap of Platform Project got the largest increase. As of October 25, 2020, the total market cap of coin projects reached 274.9 billion USD, increased by 12.51%. The average market cap of coin projects reached 5.97 billion USD, increased by 7.62%. The total market cap of platform projects reached 63.9 billion USD, increased by 5.02%. The average market cap of platform projects reached 2.36 billion USD, increased by 8.91%. The total market cap of application class projects reached 30.9 billion USD, increased by 1.37%. The average market cap of application class projects reached 1.34 billion USD, increased by 5.78%. The total market cap of asset-backed token projects reached 16.9 billion USD, increased by 2.97%. The average market cap of asset-backed token projects reached 4.23 billion USD, increased by 2.97%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of October 25, 2020 among the top 100 projects, the number of coin class projects increase 2, application class projects decrease 1, platform class projects decrease 1,and asset-backed token class remain the same.The largest overall market cap by segment was still coin projects, accounting for 71.08% 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 October 19, 2020- October 25, 2020, the average bitcoin Hashrate for the entire network reached 133.5EH/s, decreased by 7.48% from the previous week.
Average Hashrate for the entire Ethereum network was 264.12TH/s this week, increased by 0.55%.
This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of October 25, 2020, average difficulty for mining Bitcoin this week was 19.99T, increased by 2.41% from last week. The average difficulty of mining Ethereum this week was 3339.76TH, increased by 0.82% from that of previous week.
The number of blocks in Bitcoin decreased by 12.17%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks decreased by 1.07%. In the past week, Bitcoin mined 931 blocks, decreased by 12.17% from the previous week. Among the top five pools were Poolin、F2Pool、BTC.com、Huobi.pool 、AntPool , these 5 pools mined 135、129、106、95 and 94 blocks respectively, accounting for 14.50%、13.86%、11.39%、10.20% and 10.10% of all Bitcoins mined this week. The Hashrate was 19.23EH/s、18.37EH/s、15.10EH/s、13.53EH/s and 13.39EH/s, respectively.
In the past week, Ethereum’s entire network mined 48886 blocks, decreased by 1.07% in the previous week. The top five pools were SparkPool, Ethermine, ,F2pool, Zhizhu.top, and UUpool, each mined 11982、10799、4497、4387 and 2610 blocks respectively, accounting for 24.5101%、22.0902%、9.1990%、8.9739% and 5.3390% 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 decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from October 19, 2020- October 25, 2020, the average size of each block was 1.34MB, increased by 30.10% from last week; there were on average 2018 transactions recorded in each block, increased by 15.18% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 169.1, decreased by 0.59%. The average size of each block was 37366.57 bytes, decreased by 0.01% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 35.27%. Number of unconfirmed transactions in Ethereum increased by 5.58% from the previous week. As of October 25, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 11324, decreased by 35.27% from last week. There were 153791.93 unconfirmed transactions in the Ethereum network, increased by 5.58% from last week, with the lowest amount of unconfirmed transactions in the week being 36013 and the highest amount being 188760.
Total transaction fees of Bitcoin increased and Ethereum increased. As of October 25, 2020, average transaction fees of Bitcoin this week was $3.987, increased by 172.52% from last week. Average transaction fees of Ethereum this week was $0.921, incresead by 1.77%.
The average number of distinct miners per day in Ethereum decreased by 1.41% from last week. From October 19, 2020- October 25, 2020, the average number of distinct miners per day in Ethereum this week was 56.0, decreased by 1.41% from last week.
The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of October 25, 2020, there were 10999 Bitcoin nodes, increased by 2.78% compared to last week, of which 1873 nodes were in the Germany, 1805 nodes were U.S, and 188 nodes were in China(№11), each accounting for 17.03% and 16.41% of the total number of Bitcoin nodes, respectively.
As of October 25, 2020, there were 8745 Ethereum nodes, decreased by 0.10% from the previous week. Specifically, there were 2231 nodes in the U.S, 1321 nodes in China, and 973 nodes in Germany, each accounting for 25.52%, 15.11%, 11.13% 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 October 25, 2020, the total number of Bitcoin addresses was 55364970 increased by 334667 (0.61%).
LSK was the most active project on GitHub this week. From October 19, 2020 — October 25, 2020, Lisk was the active project repository on GitHub with a total of 56 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 954k, 626k and 178k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 974k, and 540k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Siemens-backed blockchain energy platform showcases in Germany
A blockchain-based energy trading platform backed by German tech giant Siemens is being publicly demonstrated in a Bavarian municipality today.The so-called “Pebbles” project — short for “peer-to-peer energy trading based on blockchains” — is holding a virtual demo of its blockchain-based marketplace platform for optimized electricity trading. The initiative aims to provide a platform to enable private energy producers to market their electricity directly to local consumers without the need for middlemen or traditional grid operators. The platform also intends to provide flexible power from battery storage for electric vehicles. Blockchain implementation is designed to ensure that all information regarding market transactions is immutable and transparent. In October 2020, Germany’s major governmental group responsible for energy innovation in Germany — Deutsche Energie-Agentur, or DENA, — claimed that the authority is looking to move its energy ecosystem to a decentralized database.
2. South Korean telecom launches blockchain wallet for official documents
The South Korean telecom giant SK Telecom has announced it will issue its first digital wallet for blockchain-powered digital certificate storage and management with the approval of the Ministry of Public Administration and Security.According to NewsTomato, SK’s Wallet is compatible with the ministry’s own Government24 digital certificate initiative, which promotes the use of electronic certificate issuance and distribution systems in South Korea in the wake of the COVID-19 pandemic.SK Telecom’s digitalized public certificates include copies of resident registration cards, health insurance qualification certificates, immigration certificates, among other documents previously issued on paper and signed by hand. They will be now issued through a mobile app backed by blockchain technology.Certificates issued through the Government24 app can be received in the SK’s wallet and later submitted to public entities, financial institutions, and private companies as electronic documents.In the initial stage, 13 types of certificates will be compatible with the wallet, but at the end of the year, SK Telecom plans to make it compatible with “a total of 100 types” of certificates, including tax-related documents.
3. PayPal to offer crypto payments starting in 2021
PayPal customers will be able to use cryptocurrencies to shop at any merchant in its large network starting from early 2021, the company said.The payments will be settled through fiat currencies, similar to many existing crypto merchant solutions like BitPay. This means that the merchants will be receiving fiat, as PayPal will take care of the conversion. The coins initially supported will include Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), the company said. The payments giant partnered with Paxos to deliver the service, and it obtained a conditional cryptocurrency license from the New York State Department of Financial Services, commonly known as the BitLicense.In addition to cryptocurrency payments, PayPal users will also be able to purchase crypto directly through the app. PayPal will thus feature a cryptocurrency wallet, letting users buy, sell and hold crypto via the PayPal apps.
3.2 International Policies
1. The Bahamas launches world’s first CBDC, the ‘Sand Dollar’
The Central Bank of the Bahamas has announced the country’s “Sand Dollar” — a state-backed virtual currency — is now available nationwide.According to an Oct. 20 Facebook post from Project Sand Dollar, the central bank digital currency (CBDC) became available to all 393,000 residents of The Bahamas from roughly 10:00 PM UTC. This makes The Bahamas the first country in the world to officially roll out a CBDC. According to the Sand Dollar website, residents of The Bahamas can use the digital currency at any merchant “with a Central Bank approved e-Wallet on their mobile device” and transaction fees are “negligible.” The central bank selected transaction provider NZIA as its technology solutions provider for the rollout of the digital currency.The central bank of the Bahamas has been preparing for the launch of the CBDC for a few years. In 2019, it started a pilot program using 48,000 digital Sand Dollars on the islands of Exuma and Abaco, which have a combined population of fewer than 25,000 people. Each Sand Dollar is pegged to the Bahamian dollar, which is in turn pegged to the U.S. dollar.
2. Swiss gov’t starts consultation process for blockchain laws
Switzerland’s Federal Department of Finance has initiated a consultation process for a blanket ordinance in the blockchain and distributed ledger technology space. The consultation will happen among cantons, parties and other interested groups in this space. It is scheduled to continue for more than three months, ending on Feb. 2, 2021.This is a part of the Swiss government’s active interest in promoting blockchain and cryptocurrency. The consultation to create better laws for the blockchain industry comes only a month after the government amended several existing finance and corporate laws to incorporate provisions for blockchain technology and DLT.According to an official announcement, the amendments to the existing laws have improved the regulatory framework for Switzerland. The country is now more aligned to promote blockchain and DLT innovation.
3. Philippines’ central bank isn’t ready to pull the trigger on a CBDC
Philippine central bank governor Benjamin Diokno has announced that the institution’s “exploratory” study of central bank digital currency study suggests that much more work is needed to make a digital peso a reality. In a press briefing, Diokno reportedly rejected the possibility that a CBDC could be issued any time in the near future. The study so far has suggested that ongoing research is needed to look into capacity-building and the creating of networks between other central banks and financial institutions. So far, the bank’s study has covered basic issues surrounding CBDCs, focusing on implications for monetary policy, legal frameworks, payments and settlement systems, financial inclusion, and regulatory oversight. CBDC research in the Philippines has emerged against the backdrop of the central bank’s Digital Payments Transformation Roadmap, which aims to switch over 50% of retail payments into digital form by 2023, and to ensure that 70% of citizens have a bank account by the end of the period.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, CasperLabs got 14 million dollars in strategic investment from DigitalStrategies leading, Content Value Network got strategic investment from CWV.
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.
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