Huobi Research Weekly (Vol.166 (2021.5.17–2021.5.23）
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 32.02%, with 93 projects decreased in value to varying degrees. According to coinmarketcap, as of May 23, 2021, the total market cap of cryptocurrencies was 1428.1 billion U.S.dollars, decreased of 32.02%, and the total market cap of the top 100 cryptocurrencies was 1382.9 billion U.S. dollars, decreased by 34.41% from last week. 4 cryptocurrency projects entered the top 100 this week, namely MDX、XDC、FLOW and HUSD. As of May 23, 2021, Bitcoin was traded at 34770.58USD, 25.15% lower than its price last week. Ethereum was traded at 2109.58USD, 41.15% lower than its price last week.
The hashrate of Bitcoin decreased but 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 increased but Ethereum increased. LINK was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 146.4EH/s, decreased by 18.35% from the previous week. Average Hashrate for the entire Ethereum network was 627.41TH/s this week, increased by 3.00%. Average difficulty for mining Bitcoin this week was 25.04T, as same as last week. The average difficulty of mining Ethereum this week was 8006.7TH, increased by 3.37% from that of previous week.
In network activity, the average size of each block was 1.29MB, decreased by 4.44% from last week; there were on average 1929 transactions recorded in each block, increased by 2.23% from the previous week. The average number of transactions per block in Ethereum this week was 218.8, decreased by 12.65%. The average size of each block was 56164.00 bytes, decreased by 0.52% compared to last week. Average transaction fees of Bitcoin this week was $17.171, increased by 30.49% from last week. Average transaction fees of Ethereum this week was $9.704, decresead by 58.91% from last week. The total number of Bitcoin addresses was 73178063, increased by 256825 (0.35%). Link was the most active project on GitHub this week, with 21 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, Hashtagger got 0.25 million dollars in seed round investment from NGC、CMS、Liquefy Labs etc. leading，Vertalo got 5 million dollars in A round investment from Wedbush Capital，Coinbase，Tezos Foundation etc.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 32.02%, with 93 projects decreased in value to varying degrees. According to coinmarketcap, as of May 23, 2021, the total market cap of cryptocurrencies was 1428.1 billion U.S.dollars, decreased of 32.02%, and the total market cap of the top 100 cryptocurrencies was 1382.9 billion U.S. dollars, decreased by 34.41% from last week, among which, MDX had the largest increased of 30.90%, bringing its market cap ranking from №126 to №92, LUNA had the largest decreased of -74.22%, bringing its market cap ranking from №30 to №51. In addition, there were 4 projects that entered TOP100, namely, XDC (XinFin Network, decreased 38.84%, Now №99), FLOW (Flow, decreased 38.20%, Now №100), HUSD (Husd, increased 17.83%, Now №70), MDX (Mdex, increased 30.90%, Now №92). As of May 23, 2021, Bitcoin was traded at 34770.58USD, 25.15% lower than its price last week. Ethereum was traded at 2109.58USD, 41.15% lower than its price last week.
The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 7.52% compared with the same period of last week. In this week, 54 of the top 100 projects increased in 24h trading volume, led by UST with a weekly increased of 420.86%; there were 46 projects decreased in their 24h trading volume, there were 26 projects that saw over 20% decrease in their 24h trading volume, while 11 projects fell by more than 50%, led by ONE, with a decreased of -77.07%.
The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On May 23, 2021, the overall market cap of the top 10 cryptocurrencies was 1382.9 billion USD, decreased by 34.41% from last week, accounting for 81.48% of the total market capitalization of cryptocurrencies, increased by 0.03% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 45.56%, increased by 4.18% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Application project got the largest decrease. The average market cap of Application project got the largest decrease. As of May 23, 2021, the total market cap of coin projects reached 827.6 billion USD, decreased by 30.67%. The average market cap of coin projects reached 16.5 billion USD, decreased by 27.90%. The total market cap of platform projects reached 369.5 billion USD, decreased by 41.29%. The average market cap of platform projects reached 17.5 billion USD, decreased by 38.49%. The total market cap of application class projects reached 124.0 billion USD, decreased by 45.03%. The average market cap of application class projects reached 4.77 billion USD, decreased by 49.26%. The total market cap of asset-backed token projects reached 61.6 billion USD, increased by 3.79%. The average market cap of asset-backed token projects reached 20.5 billion USD, decreased by 30.80%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of May 23, 2021, among the top 100 projects, the number of coin class projects decrease 2, application class projects increase 2 ,asset-backed token class projects increase 1, platform class decrease 1.The largest overall market cap by segment was still coin projects, accounting for 59.85% 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 May 17, 2021- May 23, 2021, the average bitcoin Hashrate for the entire network reached 146.4EH/s, decreased by 18.35% from the previous week.
Average Hashrate for the entire Ethereum network was 627.41TH/s this week, increased by 3.00%.
This week, the difficulty of mining Bitcoin not changed and Ethereum increased. As of May 17, 2021, average difficulty for mining Bitcoin this week was 25.04T, as same as last week. The average difficulty of mining Ethereum this week was 8006.7TH, increased by 3.37% from that of previous week.
The number of blocks in Bitcoin decreased by 22.13%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.70%. In the past week, Bitcoin mined 813 blocks, decreased by 22.13% from the previous week. Among the top five pools were F2Pool、Poolin、AntPool、ViaBTC、BTC.com, these 5 pools mined 135、123、113、83 and 80 blocks respectively, accounting for 16.61%、15.13%、13.90%、10.21% and 9.84% of all Bitcoins mined this week. The Hashrate was 24.04EH/s、21.91EH/s、20.13EH/s、14.78EH/s and 14.25EH/s, respectively.
In the past week, Ethereum’s entire network mined 48165 blocks, increased by 0.70% in the previous week. The top five pools were SparkPool, Ethermine, F2pool ,Zhizhu.top and Hiveon Pool and, each mined 11680、9419、4993、2671 and 2441 blocks respectively, accounting for 24.2500%、19.5557%、10.3664%、5.5455% and 5.0680% of all Ethereum mined this week, respectively.
2.2 Activity Statistics
The average number of transactions per block decreased but 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 May 17, 2021- May 23, 2021, the average size of each block was 1.29MB, decreased by 4.44% from last week; there were on average 1929 transactions recorded in each block, increased by 2.23% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 218.8, decreased by 12.65%. The average size of each block was 56164.00 bytes, decreased by 0.52% compared to last week.
Number of unconfirmed transactions in Bitcoin increased by 187.08%. Number of unconfirmed transactions in Ethereum decreased by 4.95% from the previous week. As of May 23, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 25372, increased by 187.08% from last week. There were 154558.45 unconfirmed transactions in the Ethereum network, decreased by 4.95% from last week, with the lowest amount of unconfirmed transactions in the week being 29055 and the highest amount being 191505 `.
Total transaction fees of Bitcoin increased but Ethereum decreased. As of May 23, 2021, average transaction fees of Bitcoin this week was $17.171, increased by 30.49% from last week. Average transaction fees of Ethereum this week was $9.704, decresead by 58.91% from last week.
The average number of distinct miners per day in Ethereum increased. From May 17, 2021- May 23, 2021, the average number of distinct miners per day in Ethereum this week was 51.1, increased by 2.82% from last week.
The number of nodes in Bitcoin increased by 0.40% ,The number of nodes in Ethereum increased by 5.53% this week. As of May 23, 2021, there were 9743 Bitcoin nodes, increased by 0.40% compared to last week, of which 1902 nodes were in U.S, 1776 nodes were in Germany, and 189 nodes were in China(№9), each accounting for 19.52%, 18.23% and 1.94% of the total number of Bitcoin nodes, respectively.
As of May 23, 2021, there were 4240 Ethereum nodes, increased by 5.53% from the previous week. Specifically, there were 1648 nodes in the U.S, 772 nodes in Germany, and 266 nodes in China, each accounting for 38.87%, 18.21%, 6.27% 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 May 23, 2021, the total number of Bitcoin addresses was 73178063, increased by 256825 (0.35%).
LINK was the most active project on GitHub this week. From May 17, 2021 — May 23, 2021, Chainlink was the active project repository on GitHub with a total of 21 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 951k, 625k and 223k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 2.4million , 1.7million, and 1.2million followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Spain’s national soccer team to launch fan token on Turkish platform
A physical showroom for nonfungible tokens is set to open in Riga, Latvia, where NFTs of street art from around the globe will be put on display. The gallery is being launched by Kiwie 1001, an NFT project born from the Latvian street art collective of the same name. Street art and NFTs might seem like a strange pairing, particularly given the reluctance by street artists to engage with the commercial side of the art industry. Yet displaying it as NFTs actually solves one problem that accompanies the presentation of street art — namely, how do you show it to someone without breaking down the wall it’s spray-painted on?Minting the pieces as NFTs on a blockchain might seem like a lot of work when a photograph would suffice, but the lead business strategist at Kiwie 1001, Kristaps Vaivods, said hosting the tokens in a physical location would also help spread awareness of NFTs while allowing artists to get noticed.
2. Spanish stock exchange ready to test blockchain-based SME financing system
Spanish stock exchange Bolsas y Mercados Españoles, or BME is set to test its blockchain infrastructure for small- and medium-sized enterprise financing following a successful pilot run back in 2020.According to Finextra, this next set of trials by BME will involve businesses that are part of the country’s SME financing ecosystem under the aegis of a regulatory sandbox created by Spain’s Ministry of Economic Affairs and Digital Transformation. Indeed, the BME’s blockchain platform aims to facilitate SME financing digital assets that represent funding avenues like convertible notes and participatory loans. For the SME financing project, the blockchain platform will also include a digital wallet for SMEs to store their assets — both financial investment instruments and electronic money.
3. Singapore’s biggest bank launches crypto trust solution
DBS Private Bank, one of the biggest wealth managers in Asia outside China, has launched a cryptocurrency trust solution amid growing demand for digital assets. The new crypto trust solution allows the company’s private banking clients to invest, custody and manage cryptocurrencies. The trust offering supports four cryptocurrencies including Bitcoin (BTC), Ether (ETH), XRP, and Bitcoin Cash (BCH), which are the sole digital assets hosted on the DBS Digital Exchange.“Our trust structure allows clients to conveniently hold these assets, with a peace of mind that they will be safely managed and passed on to their intended beneficiaries,” DBS Private Bank group head Joseph Poon said. He said that more clients have expressed interest in investing in crypto or already invested in digital assets. “We expect this trend to accelerate as cryptocurrencies turn more mainstream,” Poon noted.
3.2 International Policies
1. Crypto crash sees legislators mulling new regulations
United States regulators and lawmakers may be revisiting legislation for crypto assets following a wild week of trading that has seen Bitcoin (BTC) prices plunge by $15,000 at one point.According to a Bloomberg report on Tuesday, Washington’s financial regulators are still unsure of how to regulate the volatile markets. As banking regulators testified on Capitol Hill on Wednesday, Federal Reserve Vice Chairman of Supervision Randal Quarles spoke of a lack of sufficient regulations, stating:“We are in the process at the Fed of studying the various ways to address this issue.”He added that federal agencies need time to consider the right regulatory approach before they can then create a framework for oversight. U.S. authorities are still primarily concerned with the illicit activities associated with decentralized digital assets, such as market manipulation, money laundering and a growing trend in ransomware attacks.
2. Indian government is rethinking crypto ban: The Economic Times
Reports are emerging that India’s government may be reconsidering its stance on cryptocurrencies with the formation of a new regulatory panel. The move comes amid increasing support for overturning recommendations made by a committee led by former finance secretary Subhash Garg in 2019 for a blanket ban on crypto assets on the grounds they have become outdated.The report quoted an unnamed official with knowledge of the matter who stated:“There is a view within the government that the recommendations made by the Subhash Garg are dated and a fresh look is needed at use of cryptos rather than a total ban,” The new panel may be used to investigate the use of blockchain for technological enhancement and suggest ways to regulate crypto assets separately to fia currencies. It may also work closely with the Reserve Bank of India on any proposed digital Rupee project.
3. Argentina’s tax body reportedly asks crypto firms to report all activity
Argentina’s tax authority AFIP reportedly ordered domestic crypto exchanges and payment firms to provide monthly reports of all kinds of operations. A tax authority in Argentina is reportedly looking to scrutinize operations involving cryptocurrencies like Bitcoin (BTC).Argentina’s Federal Administration of Public Income, or AFIP, has ordered domestic crypto exchanges and payment firms to provide monthly reports of all kinds of operations by users on their platforms. In a notice to local crypto firms, the authority asked virtual currency service providers to maintain regular lists of all user accounts and identity verifications of clients, as well as their income, expenses, and monthly balance. The AFIP reportedly cited an information regime form 8126 comprising data about administration and intermediation of virtual accounts, virtual wallets, investment and financing.The report stresses that the AFIP’s crypto regulation relates not only to cryptocurrency exchanges but also payment processors including popular crypto-friendly payment application Mercado Pago. Companies will have to file all necessary information each month by the 15th of the following month, the report notes.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, Hashtagger got 0.25 million dollars in seed round investment from NGC、CMS、Liquefy Labs etc. leading，Vertalo got 5 million dollars in A round investment from Wedbush Capital，Coinbase，Tezos Foundation 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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