Huobi Research Weekly (Vol.152) (2021.2.1–2021.2.7)
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 20.56%, with 93 projects increased in value to varying degrees. According to coinmarketcap, as of February 7, 2021, the total market cap of cryptocurrencies was 1176.5 billion U.S. dollars, increased of 20.56%, and the total market cap of the top 100 cryptocurrencies was 1166.0 billion U.S. dollars, increased by 19.60% from last week. 3 cryptocurrency projects entered the top 100 this week, namely BNT、CAKE and MATIC. As of February, 7, 2021, Bitcoin was traded at 38903.44USD, 17.52% higher than its price last week. Ethereum was traded at 1614.23USD, 22.86% 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 decreased and the average block size of Bitcoin decreased. The average number of transactions per block increased and the average block size of Ethereum increased this week. The average transaction fees of Bitcoin decreased but Ethereum increased. BCH was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 152.5EH/s, decreased by 0.02% from the previous week. Average Hashrate for the entire Ethereum network was 363.98TH/s this week, increased by 4.18%. Average difficulty for mining Bitcoin this week was 21.38T, increased by 2.69% from last week. The average difficulty of mining Ethereum this week was 4610.50TH, increased by 3.48% from that of previous week.
In network activity, the average size of each block was 1.29MB, decreased by 0.77% from last week; there were on average 2100 transactions recorded in each block, decreased by 8.54% from the previous week. The average number of transactions per block in Ethereum this week was 197.8, increased by 7.21%. The average size of each block was 45104.71 bytes, increased by 0.93% compared to last week. Average transaction fees of Bitcoin this week was $14.11, decreased by 6.59% from last week. Average transaction fees of Ethereum this week was $19.378, incresead by 100.77% from last week. The total number of Bitcoin addresses was 66670038, increased by 547616 (0.83%) Bitcoin cash was the most active project on GitHub this week, with 27 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 Ethereum.
2 investments activities took place in the blockchain industry this week, Rarible got 1.75 million dollars in seed round investment from 1kx，CoinbaseVentures，ParafiCapital，CoinFund etc, Manta Network got 1.1 million dollars in seed round investment from Draper Polychain leading.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 20.56%, with 93 projects increased in value to varying degrees. According to coinmarketcap, as of February 7, 2021, the total market cap of cryptocurrencies was 1176.5 billion U.S. dollars, increased of 20.56%, and the total market cap of the top 100 cryptocurrencies was 1166.0 billion U.S. dollars, increased by 19.60% from last week, among which, UMA had the largest increased of 156.91%, bringing its market cap ranking from №55 to №36, XRP had the largest decreased of -15.10%, bringing its market cap ranking from №4 to №5. In addition, there were 3 projects that entered TOP100, namely, BNT (Bancor, increased 29.47%, Now №96), CAKE (PancakeSwap, increased 67.23%, Now №88), MATIC (Matic Network, increased 79.42%, Now №92). As of February, 7, 2021, Bitcoin was traded at 38903.44USD, 17.52% higher than its price last week. Ethereum was traded at 1614.23USD, 22.86% higher than its price last week.
The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 27.12% compared with the same period of last week. In this week, 72 of the top 100 projects increased in 24h trading volume, led by CELO with a weekly increase of 695.24%; there were 28 projects decreased in their 24h trading volume, there were 18 projects that saw over 20% decrease in their 24h trading volume, while 8 projects fell by more than 50%, led by VGX, with a decreased of -79.32%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On February 7, 2021, the overall market cap of the top 10 cryptocurrencies was 1036.4 billion USD, increased by 18.70% from last week, accounting for 88.09% of the total market capitalization of cryptocurrencies, decreased by 1.38% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 61.57%, decreased by 1.59% 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 February 7, 2021, the total market cap of coin projects reached 828.3 billion USD, increased by 18.88%. The average market cap of coin projects reached 16.2 billion USD, increased by 16.55%. The total market cap of platform projects reached 238.8 billion USD, increased by 26.38%. The average market cap of platform projects reached 10.3 billion USD, increased by 20.89%. The total market cap of application class projects reached 69.3 billion USD, increased by 12.18%. The average market cap of application class projects reached 3.01 billion USD, increased by 21.94%. The total market cap of asset-backed token projects reached 29.5 billion USD, increased by 8.02%. The average market cap of asset-backed token projects reached 9.83 billion USD, increased by 8.02%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of February 7, 2021, among the top 100 projects, the number of coin class projects increase 1, application class projects decrease 2, platform class projects increase 1 and asset-backed token class remain the same.The largest overall market cap by segment was still coin projects, accounting for 71.04% 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 February 1, 2021- February 7, 2021, the average bitcoin Hashrate for the entire network reached 152.5EH/s, decreased by 0.02% from the previous week.
Average Hashrate for the entire Ethereum network was 363.98TH/s this week, increased by 4.18%.
This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of February 7, 2021, average difficulty for mining Bitcoin this week was 21.38T, increased by 2.69% from last week. The average difficulty of mining Ethereum this week was 4610.50TH, increased by 3.48% from that of previous week.
The number of blocks in Bitcoin increased by 4.15%,Top 5 rankings not changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.63%. In the past week, Bitcoin mined 1055 blocks, increased by 4.15% from the previous week. Among the top five pools were F2Pool、Poolin、Binance Pool、BTC.com、AntPool, these 5 pools mined 174、131、121、108 and 107 blocks respectively, accounting for 16.49%、12.42%、11.47%、10.24% and 10.14% of all Bitcoins mined this week. The Hashrate was 25.92EH/s、19.51EH/s、18.02EH/s、16.09EH/s and 15.94EH/s, respectively.
In the past week, Ethereum’s entire network mined 48397 blocks, increased by 0.63% in the previous week. The top five pools were SparkPool, Ethermine, F2pool,Zhizhu.top, and Nanopool, each mined 12116、9748、5216、3533 and 2434 blocks respectively, accounting for 25.0346%、20.1417%、10.7775%、7.3000% and 5.0292% 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 increased and the average block size of Ethereum increased this week. According to blockchain.info, from February 1, 2021- February 7, 2021, the average size of each block was 1.29MB, decreased by 0.77% from last week; there were on average 2100 transactions recorded in each block, decreased by 8.54% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 197.8, increased by 7.21%. The average size of each block was 45104.71 bytes, increased by 0.93% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 2.03%. Number of unconfirmed transactions in Ethereum increased by 0.15% from the previous week. As of February 7, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 23168, decreased by 2.03% from last week. There were 157313.11 unconfirmed transactions in the Ethereum network, increased by 0.15% from last week, with the lowest amount of unconfirmed transactions in the week being 95047 and the highest amount being 198089`.
Total transaction fees of Bitcoin decreased but Ethereum increased. As of February 7, 2021, average transaction fees of Bitcoin this week was $14.11, decreased by 6.59% from last week. Average transaction fees of Ethereum this week was $19.378, incresead by 100.77% from last week.
The average number of distinct miners per day in Ethereum decreased. From February 1, 2021- February 7, 2021, the average number of distinct miners per day in Ethereum this week was 52.7, decreased by 1.86% from last week.
The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum increased this week. As of February 7, 2021, there were 8992 Bitcoin nodes, decreased by 15.70% compared to last week, of which 1732 nodes were in the Germany, 1708 nodes were U.S, and 223 nodes were in China(№9), each accounting for 19.26%, 18.99% and 2.48% of the total number of Bitcoin nodes, respectively.
As of February 7, 2021, there were 12461 Ethereum nodes, increased by 9.96% from the previous week. Specifically, there were 3349 nodes in the U.S, 2119 nodes in Germany, and 1053 nodes in China, each accounting for 26.88%, 17.01%, 8.45% 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 February 7, 2021, the total number of Bitcoin addresses was 66670038, increased by 547616 (0.83%).
BCH was the most active project on GitHub this week. From February 1, 2021 — February 7, 2021, Bitcoin cash was the active project repository on GitHub with a total of 27 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 949k, 625k and 191k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 1.3million , 1.1million, and 662k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Microsoft uses blockchain technology to purchase soil carbon credits in Australia
Microsoft has employed blockchain technology to purchase soil carbon credits in Australia. In combination with Regen Network — built on the Cosmos blockchain — the CarbonPlus Grassland credits were initially issued to two ranches in New South Wales.The carbon credits are used as a measure of soil sequestration, which is the process of capturing atmospheric carbon dioxide and storing it in soil. This is achieved through Regen Network’s remote sensing technology and is also said to help monitor animal welfare, soil health and general ecosystem health.A total of 43,338 metric tons worth of carbon credits were issued to Wilmot Cattle Co in an initiative prompted by natural capital firm Impact AG before Microsoft purchased it. The Wilmot ranchers have reportedly increased the concentration of soil organic carbon on their lands up to 4.5%, achieved through managed grazing practices. The ideal concentration of soil organic carbon is said to be 4% to 6%.
2. Fine Wines Become First Tokenized Securities Under New Swiss Blockchain Law
Sygnum, a digital-asset finance firm with a Swiss banking license, has tokenized its first set of assets under the nation’s new law addressing the use of distributed ledger technology (DLT).Sygnum Bank teamed up with Fine Wine Capital AG to tokenize a range of “investible fine wines,” issuing tokens representing the alcoholic assets on Sygnum’s Desygnate platform. The legislation is expected to open luxury goods such as diamonds and fine wine to a larger pool of investors by increasing accessibility and liquidity of such assets using blockchain technology.“Tokenization of wine assets enables us to expand our private collector investor base to new private and institutional investors,” said Fine Wine co-founder Alexandre Challand. “This provides them the opportunity to hold, trade or request a physical settlement of this unique asset in an efficient manner.”
3. Japan to Have Blockchain-Based Stock Exchange in 2022
SBI Holdings has reportedly partnered with Sumitomo Mitsui Financial Group (SMFG) to launch a digital stock exchange slated for spring 2022.SBI and SMFG are expected to launch the platform in Osaka to compete against the Tokyo Stock Exchange (TSE), according to a Nikkei report Thursday. The exchange is expected to be Japan’s first such stock exchange, allowing investors to trade digital securities using blockchain technology.In March, the companies will set up an operator called the Osaka Digital Exchange (ODX), with SBI to own 60% and SMFG 40%, per the report.SBI and SMFG, which both have brokerage arms, will put in place a governance structure to prevent any conflict of interest.
3.2 International Policies
1. Phase one of Switzerland’s blockchain law goes into effect
Part one of the Swiss blockchain law covering company reforms went into effect. Back in September 2020, the country’s parliament passed an expanded regulatory framework for crypto and blockchain technology in the country. According to a Swissinfo report, the implementation of the new regulatory paradigm will help to improve Switzerland’s burgeoning crypto and blockchain scene. Indeed, industry stakeholders in the country praised the expanded financial and corporate reforms included in the amended legislation passed by parliament in September 2020.For Hans Kuhn, a board member at digital bank SEBA, the blockchain law establishes Switzerland’s place in the emerging digital economy. According to Kuhn, the regulated issuance of blockchain-based securities points to the country’s focus on promoting digital innovation. Part two of the Swiss blockchain law will cover significant upgrades to the country’s financial market infrastructure. This part of the blockchain act will provide legal backing for trading crypto securities as well as other cryptocurrency exchange operations.
2. Switzerland’s Tokenized Securities Law Ushers In New Chapter for Digital Assets
Switzerland now lets tokenized securities trade on a blockchain with the same legal standing as traditional assets. The new law went into effect Monday.
Swiss lawmakers decided not to create a completely new regime but adapted legislation to graft specific features of distributed ledger technology (DLT) onto the existing legal framework. The DLT amendments recognize tokenized securities as a new class of asset, whose legal ownership rights are automatically transferred via the blockchain to each new investor. The law change further cements Switzerland as one of the most advanced jurisdictions in the world for crypto. Meanwhile, SEBA is issuing its Series B equity shares as Ethereum ERC-20 tokens. The move will allow for “seamless connectivity for trading and liquidity on future internationally recognized digital liquidity venues,” the firm said in a press statement. It’s a genuine blockchain-based digital twin of a traditional security. Switzerland’s strategy is to provide a bridge into this new digital economy and the transition from traditional fiat ways of banking and security assurance.
3. South Korean Tax Agency Carries Out Irregular Audit on Crypto Exchange Operator
The team of investigators requested past data and transaction details from Korea Digital Exchange. South Korea’s National Tax Service has conducted a special audit of Korea Digital Exchange, which operates the local cryptocurrency exchange Flybit.On Tuesday, the tax service, managed under the nation’s Ministry of Economy and Finance, sent a team of five to the firm’s offices in Gangnam, Seoul, to investigate and audit the exchange, according to a report by CoinDesk Korea.The investigators requested data and transaction details from 2017 to 2019.According to CoinDesk Korea, the National Tax Service may conduct such special investigations if it spots anomalies between actual transaction data and reported data, or if it suspects tax evasion.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, Rarible got 1.75 million dollars in seed round investment from 1kx，CoinbaseVentures，ParafiCapital，CoinFund etc, Manta Network got 1.1 million dollars in seed round investment from Draper Polychain leading.
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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