Huobi Research Weekly (Vol.168) (2021.5.31–2021.6.6）
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 11.46%, with 77 projects increased in value to varying degrees. According to coinmarketcap, as of June 6, 2021, the total market cap of cryptocurrencies was 1662.1 billion U.S.dollars, increased of 11.46%, and the total market cap of the top 100 cryptocurrencies was 1593.6 billion U.S. dollars, increased by 5.91% from last week. 1 cryptocurrency projects entered the top 100 this week, namely CRV. As of June 6, 2021, Bitcoin was traded at 35862.38USD, 0.55% higher than its price last week. Ethereum was traded at 2715.09USD, 13.68% higher than its price last week.
The hashrate of Bitcoin increased but Ethereum decreased by this week. This week, the difficulty of mining Bitcoin decreased and the difficulty of mining Ethereum decreased. The average number of transactions per block decreased and 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. LINK was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 151.0EH/s, increased by 0.80% from the previous week. Average Hashrate for the entire Ethereum network was 600.99TH/s this week, decreased by 0.56%. Average difficulty for mining Bitcoin this week was 21.04T, decreased by 15.97% from last week. The average difficulty of mining Ethereum this week was 7675.9TH, decreased by 0.72% from that of previous week.
In network activity, the average size of each block was 1.08MB, decreased by 18.18% from last week; there were on average 1485 transactions recorded in each block, decreased by 13.61% from the previous week. The average number of transactions per block in Ethereum this week was 198.8, decreased by 1.19%. The average size of each block was 51476.57 bytes, decreased by 5.43% compared to last week. Average transaction fees of Bitcoin this week was $5.58, decreased by 33.85% from last week. Average transaction fees of Ethereum this week was $4.2, decresead by 26.88% from last week. The total number of Bitcoin addresses was 73719164, increased by 256126 (0.35%). Chainlink was the most active project on GitHub this week, with 45 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, Lithium Finance got 5 million dollars in strategic investment from Pantera Capital leading，Chronicle got 3.2 million dollars in strategic investment from 4SV, AU21 Capital etc.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 11.46%, with 77 projects increased in value to varying degrees. According to coinmarketcap, as of June 6, 2021, the total market cap of cryptocurrencies was 1662.1 billion U.S.dollars, increased of 11.46%, and the total market cap of the top 100 cryptocurrencies was 1593.6 billion U.S. dollars, increased by 5.91% from last week, among which, TFUEL had the largest increased of 51.96%, bringing its market cap ranking from №56 to №45, XTZ had the largest decreased of -29.13%, bringing its market cap ranking from №35 to №49. In addition, there were 1 projects that entered TOP100, namely, CRV (Curve, increased 42.12%, Now №93). As of June 6, 2021, Bitcoin was traded at 35862.38USD, 0.55% higher than its price last week. Ethereum was traded at 2715.09USD, 13.68% higher than its price last week.
The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 24.86% compared with the same period of last week. In this week, 17 of the top 100 projects increased in 24h trading volume, led by HUSD with a weekly increased of 340.25%; there were 83 projects decreased in their 24h trading volume, there were 63 projects that saw over 20% decrease in their 24h trading volume, while 25 projects fell by more than 50%, led by ENJ, with a decreased of -85.23%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On June 6, 2021, the overall market cap of the top 10 cryptocurrencies was 1315.9 billion USD, increased by 5.70% from last week, accounting for 79.17% of the total market capitalization of cryptocurrencies, decreased by 4.31% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 40.41%, decreased by 4.38% 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 June 6, 2021, the total market cap of coin projects reached 898.4 billion USD, increased by 3.09%. The average market cap of coin projects reached 18.3 billion USD, increased by 5.20%. The total market cap of platform projects reached 468.9 billion USD, increased by 10.86%. The average market cap of platform projects reached 20.3 billion USD, increased by 6.04%. The total market cap of application class projects reached 161.7 billion USD, increased by 10.50%. The average market cap of application class projects reached 6.47 billion USD, increased by 10.50%. The total market cap of asset-backed token projects reached 64.4 billion USD, increased by 1.10%. The average market cap of asset-backed token projects reached 21.4 billion USD, increased by 1.10%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of June 6, 2021, among the top 100 projects, the number of coin class projects decreased 1, application class projects remain the same ,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 56.38% 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 31, 2021- June 6, 2021, the average bitcoin Hashrate for the entire network reached 151.0EH/s, increased by 0.80% from the previous week.
Average Hashrate for the entire Ethereum network was 600.99TH/s this week, decreased by 0.56%.
This week, the difficulty of mining Bitcoin decreased and Ethereum decreased. As of June 6, 2021, average difficulty for mining Bitcoin this week was 21.04T, decreased by 15.97% from last week. The average difficulty of mining Ethereum this week was 7675.9TH, decreased by 0.72% from that of previous week.
The number of blocks in Bitcoin increased by 17.50%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks decreased by 3.32%. In the past week, Bitcoin mined 1007 blocks, increased by 17.50% from the previous week. Among the top five pools were F2Pool、AntPool、Poolin、BTC.com、ViaBTC, these 5 pools mined 154、151、131、112 and 103 blocks respectively, accounting for 15.29%、15.00%、13.01%、11.12% and 10.23% of all Bitcoins mined this week. The Hashrate was 23.00EH/s、22.55EH/s、19.56EH/s、16.73EH/s and 15.38EH/s, respectively.
In the past week, Ethereum’s entire network mined 46399 blocks, decreased by 3.32% in the previous week. The top five pools were SparkPool, Ethermine, F2pool Old, Hiveon Pool and BeePool, each mined 11254、9668、4917、2494 and 2261 blocks respectively, accounting for 24.2548%、20.8367%、10.5972%、5.3751% and 4.8729% 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 decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from May 31, 2021- June 6, 2021, the average size of each block was 1.08MB, decreased by 18.18% from last week; there were on average 1485 transactions recorded in each block, decreased by 13.61% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 198.8, decreased by 1.19%. The average size of each block was 51476.57 bytes, decreased by 5.43% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 69.71%. Number of unconfirmed transactions in Ethereum increased by 2.17% from the previous week. As of June 6, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 2373, decreased by 69.71% from last week. There were 155135.85 unconfirmed transactions in the Ethereum network, increased by 2.17% from last week, with the lowest amount of unconfirmed transactions in the week being 23423 and the highest amount being 178512 `.
Total transaction fees of Bitcoin decreased and Ethereum decreased. As of June 6, 2021, average transaction fees of Bitcoin this week was $5.58, decreased by 33.85% from last week. Average transaction fees of Ethereum this week was $4.2, decresead by 26.88% from last week.
The average number of distinct miners per day in Ethereum decreased. From May 31, 2021- June 6, 2021, the average number of distinct miners per day in Ethereum this week was 49.5, decreased by 3.32% from last week.
The number of nodes in Bitcoin decreased by 3.08% ,The number of nodes in Ethereum decreased by 6.32% this week. As of June 6, 2021, there were 9667 Bitcoin nodes, decreased by 3.08% compared to last week, of which 1892 nodes were in U.S, 1773 nodes were in Germany, and 175 nodes were in China(№9), each accounting for 19.57%, 18.34% and 1.81% 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 June 6, 2021, the total number of Bitcoin addresses was 73719164, increased by 256126 (0.35%).
LINK was the most active project on GitHub this week. From May 31, 2021 — June 6, 2021, Chainlink was the active project repository on GitHub with a total of 45 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 950k, 625k and 228k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 2.6million , 1.8million, and 1.3million followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Smart NFT Project joins major telecom to power future of smart cities
A smart NFT project and top European mobile provider have introduced a SIM card that uses the Blockchain of Things to power smart cities of the future. Blockchain developer SmartKey’s Live Objects technology is using non-fungible tokens and the Internet of Things to create a smart technology network that can manage bike sharing systems, read electric meters, and even unlock doors for emergency services workers.Working with the major European mobile service provider Orange in 80 cities across Poland, Live Objects is building a Blockchain Internet of Things (BIoT) to become the infrastructure provider of choice for smart cities of the future. “To enable Blockchain of Things devices to operate within the smart city of the future, we created a universal communication standard to connect devices over short distances,” says Szymon Fiedorowicz, CEO and co-founder of SmartKey.
2. Premier League’s Wolverhampton Wanderers soccer club to launch fan token
The English Premier League’s Wolverhampton Wanderers Football Club will launch fan tokens under a new partnership with Turkish blockchain platform Bitci Technology.The Premier League is the most followed soccer league in the world, Bitci’s announcement states. Turkish blockchain experts will develop a Wolves fan token on Bitcichain. Bitci’s own crypto exchange will list the Wolves fan token first, followed by other exchanges worldwide. Commenting on the partnership, Wolves spokesperson Russell Jones said, “We are looking forward to investigating options for fan tokens, which we believe will create another way to engage our fans In the UK and overseas.”
3. Austrian Post combines NFT and NFC tech for digital postage stamp
Oesterreichische Post AG — Austria’s postal service — is set to adopt even more digital technology protocols for its nonfungible token (NFT) postage stamps.In a recent announcement, the Austrian Post revealed plans for incorporating near-field communication (NFC) chips in Crypto Stamp 3.0 — the third iteration of its limited-edition NFT postage stamp collectible series.These embedded NFC chips will allow stamp owners to verify the authenticity of the physical stamp based on metadata tied to the digital twin stored on the blockchain. Detailing the NFC-NFT interaction for Crypto Stamp 3.0, the post office said:“For the first time, NFC technology is also being used on an Austrian postage stamp: The Crypto Stamp 3.0 is based on an NFC-supported authenticity check and is cryptographically encrypted. […] By reading out the NFC chip, both the authenticity and the digital twin can be revealed.”According to the Austrian Post, the use of NFC technology eliminates the need for creating an additional scanning app to verify ownership of the NFT postage stamp.
3.2 International Policies
1. Irish MEP calls for stringent crypto regulations in Europe
Chris MacManus, a Member of the European Parliament (MEP) representing Midland Northwest, Ireland, has called for strict crypto regulations in Europe. MacManus has submitted 45 amendments to the EU aimed at toughening crypto laws in the region. Detailing his proposed crypto regulations, the Irish MEP stated:“Under my proposals, all new and existing crypto-assets will require authorisation by a ‘competent authority’ like the Central Bank. Currently, currency founders simply have to deposit a white paper that outlines the cryptos’ purpose and technology, with no scrutiny whatsoever. These white papers, under my amendments, would also require a lot more detail and transparency.” The Irish MEP’s recommendation also includes regulations for stablecoin issuers and virtual asset service providers (VASPs). On stablecoins, MacManus called for issuers to hold sufficient capital to back the value of their tokens in circulation.
2. Euro investment bank predicts shortfall in blockchain and tech investment
The European Union is falling behind China and the United States when it comes to blockchain and artificial intelligence investments, according to the European Investment Bank.The EIB said on Tuesday that it anticipates an ongoing investment shortfall of around 10 billion euros ($12 billion) across both technologies. China and the U.S. currently account for 80% of the global $25 billion invested in blockchain and AI, with the EU making up just 7% of that figure, reported Reuters.The bank said the underinvestment in both sectors compared to other regions was a sign that the EU has failed to translate scientific knowledge into applicable business models. The EIB said it expected investments in both technologies to contribute to the global COVID-19 recovery across sectors ranging from healthcare to financial services. The bank said extra funding from private markets would be required if the EU intended to keep pace with global competitors.
3. Thailand to target DeFi in latest regulatory clampdown
In their latest effort to regulate the cryptocurrency industry, Thailand’s financial regulators have turned their sights toward decentralized finance, or DeFi.According to a report from Bangkok Post, Thailand’s Securities and Exchange Commission (SEC) has announced that any activities related to DeFi may require a license from the financial regulator in the near future. The SEC specifically stated it will target DeFi protocols that issue tokens. It is the first time that the SEC has specifically targeted DeFi, with the regulator stating:“The issuance of digital tokens must be authorised and overseen by the Securities and Exchange Commission and the issuer is required to disclose information and offer the coins through the token portals licensed under the Digital Asset Decree.”
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, Lithium Finance got 5 million dollars in strategic investment from Pantera Capital leading，Chronicle got 3.2 million dollars in strategic investment from 4SV, AU21 Capital 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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