Huobi Research Weekly (Vol.167) (2021.5.24–2021.5.30）

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.42%, with 86 projects increased in value to varying degrees. According to coinmarketcap, as of May 30, 2021, the total market cap of cryptocurrencies was 1491.2 billion U.S.dollars, increased of 4.42%, and the total market cap of the top 100 cryptocurrencies was 1452.2 billion U.S. dollars, increased by 5.01% from last week. 1 cryptocurrency projects entered the top 100 this week, namely BAKE. As of May 30, 2021, Bitcoin was traded at 35678.13USD, 2.66% higher than its price last week. Ethereum was traded at 2390.31USD, 13.40% higher than its price last week.

The hashrate of Bitcoin increased but Ethereum decreased by this week. This week, the difficulty of mining Bitcoin not changed and the difficulty of mining Ethereum decreased. 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. The average transaction fees of Bitcoin decreased and Ethereum decreased. BCH was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 149.8EH/s, increased by 2.32% from the previous week. Average Hashrate for the entire Ethereum network was 604.39TH/s this week, decreased by 3.66%. Average difficulty for mining Bitcoin this week was 25.04T, as same as last week. The average difficulty of mining Ethereum this week was 7731.4TH, decreased by 3.44% from that of previous week.

In network activity, the average size of each block was 1.32MB, increased by 2.33% from last week; there were on average 1719 transactions recorded in each block, decreased by 10.89% from the previous week. The average number of transactions per block in Ethereum this week was 201.2, decreased by 8.04%. The average size of each block was 54433.57 bytes, decreased by 3.08% compared to last week. Average transaction fees of Bitcoin this week was $8.436, decreased by 50.87% from last week. Average transaction fees of Ethereum this week was $5.744, decresead by 40.81% from last week. The total number of Bitcoin addresses was 73463038, increased by 284975 (0.39%). Bitcoin cash was the most active project on GitHub this week, with 24 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, Yun phant got hundreds of millions of yuan in B round investment from Fosun leading，Lossless got 2.24 million dollars in strategic investment from DAO Maker, Master Ventures etc.

1. Weekly Market Review

1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.42%, with 86 projects increased in value to varying degrees. According to coinmarketcap, as of May 30, 2021, the total market cap of cryptocurrencies was 1491.2 billion U.S.dollars, increased of 4.42%, and the total market cap of the top 100 cryptocurrencies was 1452.2 billion U.S. dollars, increased by 5.01% from last week, among which, MATIC had the largest increased of 72.95%, bringing its market cap ranking from №17 to №13, ICP had the largest decreased of -22.94%, bringing its market cap ranking from №8 to №11. In addition, there were 1 projects that entered TOP100, namely, BAKE (BakeryToken, increased 71.82%, Now №94). As of May 30, 2021, Bitcoin was traded at 35678.13USD, 2.66% higher than its price last week. Ethereum was traded at 2390.31USD, 13.40% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 54.77% compared with the same period of last week. In this week, 4 of the top 100 projects increased in 24h trading volume, led by ENJ with a weekly increased of 103.94%; there were 96 projects decreased in their 24h trading volume, there were 91 projects that saw over 20% decrease in their 24h trading volume, while 55 projects fell by more than 50%, led by UST, with a decreased of -89.35%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On May 30, 2021, the overall market cap of the top 10 cryptocurrencies was 1244.9 billion USD, increased by 6.99% from last week, accounting for 83.48% of the total market capitalization of cryptocurrencies, increased by 2.01% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 44.79%, decreased by 0.77% 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 Application project got the largest increase. As of May 30, 2021, the total market cap of coin projects reached 871.4 billion USD, increased by 5.30%. The average market cap of coin projects reached 17.4 billion USD, increased by 5.30%. The total market cap of platform projects reached 423.0 billion USD, increased by 14.48%. The average market cap of platform projects reached 19.2 billion USD, increased by 9.27%. The total market cap of application class projects reached 146.4 billion USD, increased by 17.99%. The average market cap of application class projects reached 5.85 billion USD, increased by 22.70%. The total market cap of asset-backed token projects reached 63.7 billion USD, increased by 3.36%. The average market cap of asset-backed token projects reached 21.2 billion USD, increased by 3.36%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of May 30, 2021, among the top 100 projects, the number of coin class projects remain the same, application class projects decrease 1 ,asset-backed token class projects remain the same, platform class increase 1.The largest overall market cap by segment was still coin projects, accounting for 57.92% 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 but Ethereum decreased by this week. From May 24, 2021- May 30, 2021, the average bitcoin Hashrate for the entire network reached 149.8EH/s, increased by 2.32% from the previous week.
Average Hashrate for the entire Ethereum network was 604.39TH/s this week, decreased by 3.66%.

This week, the difficulty of mining Bitcoin not changed and Ethereum decreased. As of May 30, 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 7731.4TH, decreased by 3.44% from that of previous week.

The number of blocks in Bitcoin increased by 5.41%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks decreased by 0.36%. In the past week, Bitcoin mined 857 blocks, increased by 5.41% from the previous week. Among the top five pools were F2Pool、AntPool、Poolin、ViaBTC、BTC.com, these 5 pools mined 155、128、113、93 and 88 blocks respectively, accounting for 18.09%、14.94%、13.91%、10.85% and 10.27% of all Bitcoins mined this week. The Hashrate was 27.25EH/s、22.51EH/s、19.87EH/s、16.35EH/s and 15.47EH/s, respectively.
In the past week, Ethereum’s entire network mined 47993 blocks, decreased by 0.36% in the previous week. The top five pools were SparkPool, Ethermine, F2pool Old, Hiveon Pool and BeePool, each mined 11513、9907、2821、2554 and 2337 blocks respectively, accounting for 23.9889%、20.6426%、5.8779%、5.3216% and 4.8695% 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 May 24, 2021- May 30, 2021, the average size of each block was 1.32MB, increased by 2.33% from last week; there were on average 1719 transactions recorded in each block, decreased by 10.89% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 201.2, decreased by 8.04%. The average size of each block was 54433.57 bytes, decreased by 3.08% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 69.13%. Number of unconfirmed transactions in Ethereum decreased by 1.76% from the previous week. As of May 30, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 7833, decreased by 69.13% from last week. There were 151837.61 unconfirmed transactions in the Ethereum network, decreased by 1.76% from last week, with the lowest amount of unconfirmed transactions in the week being 24753 and the highest amount being 177429 `.

Total transaction fees of Bitcoin decreased and Ethereum decreased. As of May 30, 2021, average transaction fees of Bitcoin this week was $8.436, decreased by 50.87% from last week. Average transaction fees of Ethereum this week was $5.744, decresead by 40.81% from last week.

The average number of distinct miners per day in Ethereum increased. From May 24, 2021- May 30, 2021, the average number of distinct miners per day in Ethereum this week was 51.2, increased by 0.20% from last week.

The number of nodes in Bitcoin increased by 2.37% ,The number of nodes in Ethereum decreased by 6.32% this week. As of May 30, 2021, there were 9974 Bitcoin nodes, increased by 2.37% compared to last week, of which 1862 nodes were in U.S, 1786 nodes were in Germany, and 187 nodes were in China(№9), each accounting for 18.67%, 17.91% and 1.87% of the total number of Bitcoin nodes, respectively.

As of May 30, 2021, there were 3972 Ethereum nodes, decreased by 6.32% from the previous week. Specifically, there were 1466 nodes in the U.S, 772 nodes in Germany, and 272 nodes in China, each accounting for 36.91%, 19.44%, 6.85% 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 30, 2021, the total number of Bitcoin addresses was 73463038, increased by 284975 (0.39%).

BCH was the most active project on GitHub this week. From May 24, 2021 — May 30, 2021, Bitcoin cash was the active project repository on GitHub with a total of 24 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 226k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 2.5million , 1.8million, and 1.2million followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1.Can blockchain ever be part of the solution for tackling climate change?

Elon Musk captured the world’s attention when he declared that Tesla would no longer accept Bitcoin as a payment method, citing the blockchain’s environmental impact.Although this thrust the debate about cryptocurrencies and the climate into the spotlight, this has been an issue that has been rumbling on for many years.Bitcoin’s proof-of-work consensus mechanism is exceedingly energy intensive, and it seems to be a problem that’s only getting worse — with vast data centers established as miners vie to get their hands on a supply of new coins. Although blockchain has regularly been castigated as part of the problem when it comes to the environment, one Albuquerque startup believes this technology has the power to be part of the solution.Devvio has developed an innovative blockchain initiative that advances sustainability efforts — with ES&G infrastructure that provides for “Bitcoin and Ethereum with net-zero emissions.” It has already amassed a series of partnerships with companies focused on ES&G, including waste collectors, renewable energy producers and data analytics companies.

2. Decentralized ad marketplace connects publishers and brands on blockchain

Programmatic advertising is big business — bringing in billions of dollars in revenue every year. Now, a decentralized marketplace is connecting publishers and brands over the blockchain, enabling them to make direct deals.Adshares says that its platform offers crucial advantages over mainstream rivals such as Google Ads, and crypto-focused alternatives including Coinzilla and Cointraffic. As well as delivering lower fees, its servers are decentralized — and innovative systems help to minimize the possibility of ad blocking, something that starves websites of revenue.A simple onboarding process makes it easy for all parties to start using its service, and the network also intends to woo smaller advertisers by ensuring that they don’t need significant funds in order to start running a campaign for the first time.

3. Monetizing Genomic Data Is the Latest Use Case for NFTs

Professor George Church, co-founder of Nebula Genomics and professor of Genetics at Harvard Medical School, is minting a non-fungible token (NFT) of his genomic data, a first for the world of NFTs. Minted on the AkoinNFT marketplace, the NFT will be depicted as a high-resolution, artistic representation of Church’s genome and likeness. The NFT will also encode the digital location of Church’s full genomic data. That data will be hosted on the Oasis Network, a privacy-focused and blockchain-based cloud computing platform. “We think it’s essential that researchers have access to datasets that help them advance medicine, but we believe these datasets should be shared transparently,” said Church.

3.2 International Policies

1.Bank of Indonesia joins central bank digital currency race

The Bank of Indonesia is one of the latest global central banks to announce state digital currency plans amid a major spike in the country’s digital payments.Governor Perry Warjiyo said that Indonesia’s central bank is planning to launch a digital rupiah currency as a legal payment instrument in Indonesia, Reuters reports.The official noted that the rupiah is the only legally accepted currency for payment in the country so far, and BI will be looking to regulate a digital rupiah the same way it regulates cash and card-based transactions.According to Warjiyo, BI is now studying potential benefits of a digital rupiah including its impact on monetary policy and payment systems, as well as evaluating the readiness of the financial infrastructure. The bank is also assessing potential technology options for building a central bank digital currency, he noted.

2. Indian government is rethinking crypto ban: The Economic Times

According to a release issued, the South African Reserve Bank has begun preliminary feasibility studies about the “desirability and appropriateness” of a retail central bank digital currency.As part of its announcement, the SARB defined a retail CBDC as a cash-complimentary sovereign digital currency issued by the central bank suitable for electronic payments.“The objective of the feasibility study is to consider how the issuance of a general-purpose CBDC will feed into the SARB’s policy position and mandate,” South Africa’s central bank stated in its announcement.According to the SARB, the preliminary study will focus on issues surrounding a potential CBDC issuance for retail use in South Africa:“The feasibility study will include practical experimentation across different emerging technology platforms, taking into account a variety of factors, including policy, regulatory, security and risk management implications.”

3. Dubai Airport Free Zone welcomes crypto assets with new SCA agreement

Dubai is taking another step to embrace cryptocurrencies thanks to a new agreement between the Dubai Airport Free Zone Authority (DAFZA) and United Arab Emirates’ Securities and Commodities Authority (SCA).In a move to grow the crypto industry within the region, DAFZA will now allow cryptocurrency trading under an established regulation. As the financial markets supervisor across the UAE, the SCA will oversee the offering, issuance, listing and trading of crypto assets within the free zone. The SCA will also handle all necessary approvals and licensing for companies regarding crypto trading.Signed by SCA Acting CEO Maryam Al Suwaidi and DAFZA Assistant Director-General Amna Lootah, the partnership enables DAFZA to expand its business licenses and commercial activities within the free zone, local media reports.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Yun phant got hundreds of millions of yuan in B round investment from Fosun leading，Lossless got 2.24 million dollars in strategic investment from DAO Maker, Master Ventures 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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