Huobi Research Weekly (Vol.140) (2020.11.9–2020.11.15)
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 1.96%, with 54 projects increased in value to varying degrees. According to coinmarketcap, as of November 15, 2020, the total market cap of cryptocurrencies was 454.9 billion U.S. dollars, increased of 1.96%, and the total market cap of the top 100 cryptocurrencies was 447.2 billion U.S. dollars, increased by 2.10% from last week. 2 cryptocurrency projects entered the top 100 this week, namely CRV and CHSB. As of November 15, 2020, Bitcoin was traded at 15955.59USD, 3.08% higher than its price last week. Ethereum was traded at 447.56USD, 1.24% lower than its price last week.
The hashrate of Bitcoin increased and Ethereum increased by this week. This week, the difficulty of mining Bitcoin not changed and the difficulty of mining Ethereum increased. The average number of transactions per block increased but 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. LSK was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 126.6EH/s, increased by 5.68% from the previous week.Average Hashrate for the entire Ethereum network was 265.78TH/s this week, increased by 0.32%. Average difficulty for mining Bitcoin this week was 16.78T, as same as last week. The average difficulty of mining Ethereum this week was 3370.4TH, increased by 0.35% from that of previous week.
In network activity, the average size of each block was 1.29MB, decreased by 5.15% from last week; there were on average 1926 transactions recorded in each block, increased by 3.83% from the previous week. The average number of transactions per block in Ethereum this week was 169.7, decreased by 2.02%. The average size of each block was 37957.00 bytes, decreased by 2.30% compared to last week. Average transaction fees of Bitcoin this week was $3.472, decreased by 54.73% from last week. Average transaction fees of Ethereum this week was $1.216, decresead by 29.01%. The total number of Bitcoin addresses was 57904263 increased by 1534967 (2.72%). Lisk was the most active project on GitHub this week, with 71 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, ShowPay got 10 million dollars in angel investment from China Lan Tian, Axelar got 3.75 million dollars in seed round investment from Binance X，DCVC etc.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 1.96%, with 54 projects increased in value to varying degrees. According to coinmarketcap, as of November 15, 2020, the total market cap of cryptocurrencies was 454.9 billion U.S. dollars, increased of 1.96%, and the total market cap of the top 100 cryptocurrencies was 447.2 billion U.S. dollars, increased by 2.10% from last week, among which, SUSHI had the largest increased of 100.27%, bringing its market cap ranking from №92 to №71, HEDG had the largest decreased of -22.63%, bringing its market cap ranking from №47 to №55. In addition, there were 2 projects that entered TOP100, namely, CHSB (SwissBorg, increased 19.12%, Now №99), Curve DAO Token (CRV, increased 77.79%, Now №98). As of November 15, 2020, Bitcoin was traded at 15955.59USD, 3.08% higher than its price last week. Ethereum was traded at 447.56USD, 1.24% lower than its price last week.
The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 5.51% compared with the same period of last week. In this week, 48 of the top 100 projects increased in 24h trading volume, led by SUSHI with a weekly increase of 722.16%; there were 52 projects decreased in their 24h trading volume, there were 22 projects that saw over 20% decrease in their 24h trading volume, while 4 projects fell by more than 50%, led by CELO, with a decreased of -67.27%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On November 15, 2020, the overall market cap of the top 10 cryptocurrencies was 400.9 billion USD, increased by 2.23% from last week, accounting for 88.13% of the total market capitalization of cryptocurrencies, increased by 0.23% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 65.01%, increased by 0.70% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Asset-backed Project got the largest increase. The average market cap of Asset-backed Project got the largest increase. As of November 15, 2020, the total market cap of coin projects reached 328.6 billion USD, increased by 2.69%. The average market cap of coin projects reached 7.46 billion USD, increased by 2.69%. The total market cap of platform projects reached 68.9 billion USD, decreased by 0.55%. The average market cap of platform projects reached 2.55 billion USD, decreased by 0.55%. The total market cap of application class projects reached 31.1 billion USD, increased by 1.01%. The average market cap of application class projects reached 1.24 billion USD, increased by 1.01%. The total market cap of asset-backed token projects reached 18.5 billion USD, increased by 3.66%. The average market cap of asset-backed token projects reached 4.64 billion USD, increased by 3.66%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 15,2020, among the top 100 projects, the number of coin class projects, application class projects, platform class projects and asset-backed token class both remain the same.The largest overall market cap by segment was still coin projects, accounting for 73.47% 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 November 9, 2020- November 15, 2020, the average bitcoin Hashrate for the entire network reached 126.6EH/s, increased by 5.68% from the previous week.
Average Hashrate for the entire Ethereum network was 265.78TH/s this week, increased by 0.32%.
This week, the difficulty of mining Bitcoin not changed and Ethereum increased. As of November 15, 2020, average difficulty for mining Bitcoin this week was 16.78T, as same as last week. The average difficulty of mining Ethereum this week was 3370.4TH, increased by 0.35% from that of previous week.
The number of blocks in Bitcoin increased by 10.01%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.12%. In the past week, Bitcoin mined 969 blocks, increased by 27.00% from the previous week. Among the top five pools were F2Pool、Poolin、BTC.com 、AntPool 、Binance Pool, these 5 pools mined 208、134、129、121 and 95 blocks respectively, accounting for 19.51%、12.57%、12.10%、11.35% and 8.91% of all Bitcoins mined this week. The Hashrate was 24.72EH/s、15.93EH/s、15.33EH/s、14.38EH/s and 11.29EH/s, respectively.
In the past week, Ethereum’s entire network mined 48586 blocks, increased by 0.12% in the previous week. The top five pools were SparkPool, Ethermine, Zhizhu.top, F2pool, and Nanopool, each mined 11734、10589、4458、4181 and 2575 blocks respectively, accounting for 24.1510%、21.7943%、9.1755%、8.6054% and 5.2999% of all Ethereum mined this week, respectively.
2.2 Activity Statistics
The average number of transactions per block increased but 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 November 9, 2020- November 15, 2020, the average size of each block was 1.29MB, decreased by 5.15% from last week; there were on average 1926 transactions recorded in each block, increased by 3.83% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 169.7, decreased by 2.02%. The average size of each block was 37957.00 bytes, decreased by 2.30% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 57.33%. Number of unconfirmed transactions in Ethereum decreased by 13.63% from the previous week. As of November 15, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 4799, decreased by 57.33% from last week. There were 130045.99 unconfirmed transactions in the Ethereum network, decreased by 13.63% from last week, with the lowest amount of unconfirmed transactions in the week being 33208 and the highest amount being 158491.
Total transaction fees of Bitcoin decreased and Ethereum decreased. As of November 15, 2020, average transaction fees of Bitcoin this week was $3.472, decreased by 54.73% from last week. Average transaction fees of Ethereum this week was $1.216, decresead by 29.01%.
The average number of distinct miners per day in Ethereum not changed. From November 2, 2020- November 8, 2020, the average number of distinct miners per day in Ethereum this week was 60.1, increased by 1.69% from last week.
The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum decreased this week. As of November 15, 2020, there were 10360 Bitcoin nodes, decreased by 7.57% compared to last week, of which 1855 nodes were in the Germany, 1720 nodes were U.S, and 209 nodes were in China(№11), each accounting for 17.91% and 16.60% of the total number of Bitcoin nodes, respectively.
As of November 15, 2020, there were 9606 Ethereum nodes, decreased by 13.31% from the previous week. Specifically, there were 2373 nodes in the U.S, 1153 nodes in China, and 965 nodes in Germany, each accounting for 28.50%, 13.85%, 11.59% 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 November 15, 2020, the total number of Bitcoin addresses was 57904263 increased by 1534967 (2.72%).
LSK was the most active project on GitHub this week. From November 9, 2020 — November 15, 2020, Lisk was the active project repository on GitHub with a total of 71 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 952k, 626k and 179k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 976k, and 542k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Your car insurance salesman is now an AI bot connected to blockchain
Malta-based virtual assistant firm Vaiot has integrated IBM’s Watson Assistant with the Cosmos blockchain to sell car insurance.The new platform features an end-to-end sales process that does not require human assistance to complete the car insurance contracts. The mobile app interacts with customers via voice or text, initially asking a series of questions to identify and suggest insurance options.Once signed, the contract is stored on the Cosmos SDK in the form of a smart contract, underpinned by the Tendermint Protocol. The AI monitors the deal and automatically begins the insurance coverage once the payment goes through.Although multiple providers have experimented with voice assistants to aid in the selling process, the announcement claims that none have been able to offer the service as an end-to-end solution which includes the actual sales process. Vaiot’s CEO Christoph Surgowt stated:“The opportunities that come with AI on cloud and blockchain technologies allow companies from the insurance and InsurTech sectors to digitize and improve their current processes, and we are confident our solutions will jumpstart this transformation.”
2. Blockchain helps determine ‘green’ parking price in Munich
Artificial intelligence specialist Fetch.ai and blockchain solutions provider Datarella have announced the launch of a “Smart City” infrastructure trial in Munich on Nov. 12.The trial will be centered around the Connex Buildings business center in the city and will use a multiagent blockchain-based AI platform to optimize parking space management at the building. This is designed to encourage reduced car use and, hence, reduced CO2 emissions.Autonomous economic agents will negotiate the “price” of parking spaces between the operators and users. Users will be rewarded for choosing less-popular parking spaces or not using the parking lot at all.Rewards will come in the form of an airdrop of Fetch.ai’s FET token to registered car park users for every minute that their vehicle is not in the parking lot. The number of tokens awarded per minute will depend on the amount of available space in the car park.While this is merely a small-scale trial, if the concept can be shown to effectively “nudge” people toward more sustainable actions, then the implications could be great.
3. Aerospace giant Thales uses blockchain to comply with NATO standards
Thales, a French multinational company specializing in products and services for aerospace and defense industries, is using blockchain technology for a new management system at its production hub in Spain.According to an official announcement on Nov. 5, Thales is seeking to deploy technologies like blockchain and big data to enable the digital transformation of its defense- and aeronautics-focused production and maintenance center.As part of the initiative, the Paris-based company looks to comply with standards by the NATO and defense authorities by using blockchain to increase traceability of processes at the center. The announcement reads:“To comply with NATO standards and those of the Ministries of Defense with which the company collaborates, blockchain will be used to ensure the traceability of all parts and products handled in the Production and Maintenance Center.”According to the announcement, blockchain will be part of a new management system connecting with all the applications that are currently used on its network. The new platform is expected to efficiently connect all processes, improve communication with customers as well as maintenance operations.
3.2 International Policies
1. Pakistan’s securities regulator mulls new legal framework for crypto
Pakistan’s government is working on a framework for regulating cryptocurrencies like Bitcoin (BTC).The Securities and Exchange Commission of Pakistan, or SECP, has published a consultation paper on regulating digital assets. Issued on Nov. 6, the paper outlines major concepts for the growing digital finance market in Pakistan and examines the existing regulatory frameworks developed by other global jurisdictions.In the document, the SECP emphasizes that digital assets are the “start of a new era of digital finance.” According to the regulator, the new era of digital finance “could only be possible by initiation of a new era that re-invents regulatory regime [or] measures as they are known to the regulators globally today.”The SECP noted that the consultation paper focuses exclusively on private crypto assets and does not include remarks on a central bank digital currency, or CBDC.Distinguishing several types of digital assets, the SECP pays particular attention to security tokens and utility tokens. According to the regulator, one of the key advantages of security tokens is the ability to fractionalize each asset, which enables benefits like lowering barriers for investment by retail investors. Other advantages include transparency, improved liquidity, improved clearing and settlement mechanisms and more automation tools, the paper reads.
2. World Economic Forum calls blockchain key to sustainable digital finance
The World Economic Forum, or WEF, believes that blockchain represents a core element of sustainable digital finance — a new paradigm that combines emerging technology with environmentally conscious business models.In a new report published Wednesday, UBS executive Karin Oertli lists blockchain technology along with artificial intelligence, mobile platforms and the Internet of Things as being the cornerstones of digital finance. These technologies, when combined with environmental, social and governance frameworks, could help governments and corporations reach their lofty sustainable development goals.Oertli writes:“We believe that sustainable digital finance will play an essential role in efficiently channeling this capital to fuel innovation, growth and job creation, at the same time supporting the transition to a sustainable, low-carbon economy.” The OECD said:“The core properties of blockchain and other DLT can enable deeper technological integration, standardisation, and the possibility of new business models.”
3. Lebanon to launch digital currency in face of economic and financial turmoil
Lebanon’s central bank plans to launch a new digital currency in 2021 as part of a broader effort to combat a parallel economic and financial crisis that has engulfed the country.Central bank governor Riad Salameh told a gathering of officials Monday that “We must prepare a Lebanese digital currency project” as a way to shore up confidence in the banking system.”As for the monetary supply in the Lebanese market, it is estimated that there are $10 billion stored inside homes,” Salameh said, according to the state-run National News Agency.The central banker added that a digital currency project launched in 2021 will help implement a cashless financial system to enhance the flow of money locally and abroad.Lebanon relies heavily on remittances from its vast global diaspora. In 2019, personal remittances represented nearly 14% of Lebanese gross domestic product, according to the World Bank. That figure was as high as 26.4% in 2004.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, ShowPay got 10 million dollars in angel investment from China Lan Tian, Axelar got 3.75 million dollars in seed round investment from Binance X，DCVC etc.
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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