Huobi Research Weekly (Vol.95) (2019.12.30–2020.1.5)
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 0.43%, with 48 projects increased in value to varying degrees. According to coinmarketcap, as of January 5th, 2020, the total market cap of cryptocurrencies was 197.7 billion U.S. dollars, increased by 0.43%, and the total market cap of the top 100 cryptocurrencies was 196.1 billion U.S. dollars,increased by 0.34% from last week. 3 cryptocurrency projects entered the top 100 this week, namely MXM、CSC and FXC. As of January 5th, 2020, Bitcoin was traded at 7411.32USD, 0.08% lower than its price last week. Ethereum was traded at 136.28USD, 1.20% higher than its price last week.
The hashrate of Bitcoin and Ethereum both increased by this week. This week, the difficulty of mining Bitcoin increased 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 and Ethereum both decreased. ZSC was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 104.0EH/s, increased by 7.40% from the previous week.Average Hashrate for the entire Ethereum network was 153.5TH/s this week, increased by 3.09%. Average difficulty for mining Bitcoin this week was 13.20T, increased by 1.93% from last week. The average difficulty of mining Ethereum this week was 2338.83TH, decreased by 7.35% from that of previous week.
In network activity, the average size of each block was 881.5KB, decreased 3.34% form last week; there were on average 1886 transactions recorded in each block, decreased by 4.26% from the previous week.The average number of transactions per block in Ethereum this week was 97.1, decreased by 14.97%. The average size of each block was 21281.42 bytes, decreased by 12.94% compared to last week. As of January 5th, 2020, average transaction fees of Bitcoin this week was $0.317, decreased by 7.04% from last week. Average transaction fees of Ethereum this week was $0.0664, decresead by 12.52%.Total number of addresses on the Blockchain reached 44.45 million, increased 0.10 (0.23%) million and Ethereum network reached 82.08 million, increased 0.54(0.67%) million respectively. ZSC was the most active project on GitHub this week, with 64 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, Huobi Japan got strategic investment from Tokai Tokyo Financial Holdings, BitOoda got seed round investment from Gary Ross，Calvin Schlenker，Roy Salame etc.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 0.43%, with 48 projects increased in value to varying degrees. According to coinmarketcap, as of January 5th, 2020, the total market cap of cryptocurrencies was 197.7 billion U.S. dollars, increased by 0.43%, and the total market cap of the top 100 cryptocurrencies was 196.1 billion U.S. dollars,increased by 0.34% from last week, among which, MXM had the largest increased of 398.53%, bringing its market cap ranking from №251 to №91, LUNA had the largest decreased of -22.59%, bringing its market cap ranking from №59 to №70. In addition, there were 3 projects that entered TOP100, namely, Flexacoin (FXC, increased 28.95%, Now №95), Maximine Coin (MXM, increased 398.53%, Now №91), CasinoCoin (CSC, increased 74.66%, Now №90). As of January 5th, 2020, Bitcoin was traded at 7411.32USD, 0.08% lower than its price last week. Ethereum was traded at 136.28USD, 1.20% higher than its price last week.
The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 10.46% compared with the same period of last week. In this week, 41 of the top 100 projects increased in 24h trading volume, led by CSC with a weekly increase of 426.99%; there were 58 projects decreased in their 24h trading volume, there were 22 projects that saw over 20% decrease in their 24h trading volume, while 6 projects fell by more than 50%, led by MXM, with a decreased of 98.62%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On January 5th, 2020, the overall market cap of the top 10 cryptocurrencies was 176.5 billion USD, increased by 0.24% from last week, accounting for 89.25% of the total market capitalization of cryptocurrencies, decreased by 0.17% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 67.99%, decreased by 0.35% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Application projects got the largest increase. The average market cap of Platform projects got the largest increase. As of January 5th, 2020, the total market cap of coin projects reached 150.2 billion USD, increased by 0.32%. The average market cap of coin projects reached 4.69 billion USD, increased by 3.45%. The total market cap of platform projects reached 23.3 billion USD, increased by 0.32%. The average market cap of platform projects reached 0.72 billion USD, increased by 3.46%. The total market cap of application class projects reached 18.14 billion USD, increased by 0.53%. The average market cap of application class projects reached 0.56 billion USD, decreased by 5.75%. The total market cap of asset-backed token projects reached 4.46 billion USD, increased by 0.22%. The average market cap of asset-backed token projects reached 1.15 billion USD, increased by 0.22%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of January 5th, 2020, among the top 100 projects, the number of coin class projects decreased 1, application class projects increased 2, platform class projects decreased 1 and asset-backed token class remain the same. The largest overall market cap by segment was still coin projects, accounting for 76.59% 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 and Ethereum both increased by this week. From December 30th, 2019 — January 5th, 2020, the average bitcoin Hashrate for the entire network reached 104.0EH/s, increased by 7.40% from the previous week.
Average Hashrate for the entire Ethereum network was 153.5TH/s this week, increased by 3.09%.
This week, the difficulty of mining Bitcoin increased and the difficulty of mining Ethereum decreased. As of January 5th, 2020, average difficulty for mining Bitcoin this week was 13.20T, increased by 1.93% from last week. The average difficulty of mining Ethereum this week was 2338.83TH, decreased by 7.35% from that of previous week.
The number of blocks in Bitcoin increased by 9.58%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks dereased 0.08%. In the past week, Bitcoin mined 1109 blocks,increased 9.58% from the previous week. Among the top five pools were Poolin、F2Pool、BTC.com、AntPool、Viabitcoin, these 5 pools mined 206、192、139、117 and 78 blocks respectively, accounting for 18.58% 、17.31 %、12.53 %、10.55 % and 7.03 % of all Bitcoins mined this week. The Hashrate was 19.62EH/s、18.29EH/s、13.24EH/s、11.15EH/s and 7.43EH/s, respectively.
In the past week, Ethereu’s entire network mined 41240 blocks, increased 11.22% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Nanopool and Zhizhu.top, each mined 13012、9398、4585、3203 and 1725 blocks respectively, accounting for 31.5519%、22.7886%、11.1178%、7.7667% and 8.2771% 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 December 30th, 2019-January 5th, 2020, the average size of each block was 881.5KB, decreased 3.34% form last week; there were on average 1886 transactions recorded in each block, decreased by 4.26% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 97.1, decreased by 14.97%. The average size of each block was 21281.42 bytes, decreased by 12.94% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 14.67%. Number of unconfirmed transactions in Ethereum increased by 72.67% from the previous week. As of January 5th, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 3088, decreased by 14.67% from last week. There were 60839.67 unconfirmed transactions in the Ethereum network, increased by 72.67% from last week, with the lowest amount of unconfirmed transactions in the week being 5372 and the highest amount being 71164.
Total transaction fees of Bitcoin and Ethereum both decreased. As of January 5th, 2020, average transaction fees of Bitcoin this week was $0.317, decreased by 7.04% from last week. Average transaction fees of Ethereum this week was $0.0664, decresead by 12.52%.
The average number of distinct miners per day in Ethereum decreased by 1.68% from last week. From December 30th, 2019-January 5th, 2020,the average number of distinct miners per day in Ethereum this week was 55.8, increased 5.68% from last week.
The number of nodes in Bitcoin Ethereum both increased this week. As of January 5th, 2020, there were 11266 Bitcoin nodes, increased by 18.91% compared to last week, of which 2365 nodes were in the U.S, 2277 nodes were in n/a, and 260 nodes were in China(№9), each accounting for 20.99%, 20.21% and 2.31% of the total number of Bitcoin nodes, respectively.
As of January 5th, 2020, there were 7577 Ethereum nodes, increased by 5.41% from the previous week. Specifically, there were 2015 nodes in the U.S, 1200 nodes in China, and 731 nodes in Germany, each accounting for 26.59%, 15.84%,9.65% of total number of nodes, respectively.
This week, the growth rate for new addresses of Bitcoin increased. The growth rate for new addresses of Ethereum increased. According to the data on blockchain.info, as of January 5th, 2020, the total number of Blockchain accounts reached 44456197.
According to the data on etherchain, as of January 5th, 2020, the total number of Ethereum addresses was 82085829 increased by 547416 (0.67%) this week.
ZSC was the most active project on GitHub this week. From December 30th, 2019-January 5th,2020, ZSC was the active project repository on GitHub with a total of 64 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 970k, 515k and 157k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 999k, 943k, and 493k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Beijing has officially implemented the electronic certificate of real estate registration, which has passed the blockchain technology to prevent counterfeiting
According to Beijing Daily on January 2, Beijing officially implemented the electronic license for real estate registration. The types of real estate registration electronic license include real estate certificate and real estate registration certificate. The real estate registration electronic license will be automatically generated after the registration of the real estate rights or items that have been verified and registered. All the real estate registration electronic licenses have been stored through blockchain technology for anti-counterfeiting, which can be previewed and downloaded.
2. Guangzhou Metro issues the first electronic invoice of blockchain
According to the news of science and Technology Daily on January 1, under the guidance of Guangzhou Municipal Taxation Bureau of the State Administration of Taxation, Guangzhou Metro issued the first blockchain electronic invoice on January 1, 2020, marking the application of blockchain electronic invoice in Guangzhou public transport industry. It is expected that it will be widely used in the official app of Guangzhou Metro before the middle of January. The integrated application of blockchain technology plays an important role in the new technological innovation and industrial transformation. The implementation and promotion of blockchain invoices will further facilitate the public to issue invoices when they take the subway. Guangzhou Metro said that at present, the invoice function is still in the process of debugging. In the future, it will speed up the function debugging of the system, improve the invoicing function, and strive to achieve the full self-service issuance of block chain e-invoice by passengers through the official app of Guangzhou Metro before the middle of January, so as to bring more efficient, high-quality and intelligent travel experience for passengers.
3. Turkish Bank’s Blockchain Platform for Digital Gold Transfers Goes Live
Turkey’s Istanbul Clearing, Settlement and Custody Bank (Takasbank) announced that its blockchain-based, physical gold-backed transfer system is now live.Turkish Takasbank launched BiGA Digital Gold to provide banks with a blockchain-based system for the issuance, repayment and transfer of digitized gold, according to an announcement on Dec. 30. The BiGA system — first announced in September 2019 — enables participating banks to use blockchain tech to transfer digital assets representing a quantity of physical gold. Each asset represents a gram of gold that is physically stored in vaults of the Borsa Istanbul (BIST) Turkish stock exchange.The BiGA project aims to “establish an infrastructure that will allow for the execution of the transfer of dematerialized gold at certain standards with their physical equivalents kept in safe custody using blockchain technology,”
3.2 International Policies
1. COSO to Release Guidance on Blockchain for Businesses Aiming to Deploy Tech
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) is planning to release guidance on blockchain for companies looking to deploy the technology.As The Wall Street Journal reported on Dec. 27, COSO — an initiative to fight corporate fraud — is working on guidance on blockchain to give a better understanding of the tech for businesses that aim to integrate it into their internal processes. COSO expects to release the guidance in the first quarter of 2020. Specifically, the guidance targets executives in financial services and businesses that use blockchain to improve their supply chains. COSO’s guidance is geared to help companies set up internal controls and manage enterprise-wide risks.
2. United Nations Must Embrace Blockchain: UN Secretary-General
United Nations (UN) secretary-general António Guterres said the organization must embrace blockchain technology. According to a Dec. 28 Forbes report, Guterres believes that blockchain should be among the technologies used by the UN. “For the United Nations to deliver better on our mandate in the digital age, we need to embrace technologies like blockchain that can help accelerate the achievement of Sustainable Development Goals,” he said.This is not the first time that Guterres spoke highly of the potential of blockchain technology. As Cointelegraph reported in July last year, at the time he created a “High-Level Panel on Digital Cooperation,” which explicitly put blockchain technology on the agenda.In September 2018, he also spoke of how trust in national institutions, among states and in a rule-based global order has declined and how technologies, particularly blockchain, can help mitigate the issue. Still, he spoke less positively about cryptocurrencies: “Organized criminal networks lurk on the dark web, profiting from encryption and near-anonymous cryptocurrency payments to traffic in people and illegal goods.”
3. Chinese Regulators Worry About Crypto Resurgence, Issue New Warning
China’s securities regulators has urged Beijing authorities to carry out relevant actions aimed at preventing the usage of cryptocurrencies by the public.In a Dec. 27 announcement on the China Securities Regulatory Commission (CSRC) website pointed out the risks of the resurgence of digital currencies, such as the escalation of crypto trading activities, digital currency mortgage provision and introduction of zero-interest loans, as well as serious violations of the People’s Bank of China (PBoC) provisions. Signatory to the announcement were four Beijing-local regulators. To address risks, the regulators issued a warning and called local authorities to combat cryptocurrency-related illegal activities in Beijing. The warning reiterated the Chinese government’s negative stance towards cryptocurrencies, stating that both legal entities and individuals cannot carry out virtual currency sales, investments or transactions, nor engage domestic or foreign agents to trade cryptocurrencies.
4. South Korea Forms Task Force for Central Bank Digital Currency Research
South Korea’s central bank, the Bank of Korea (BOK), plans to organize a task force dedicated to central bank digital currency (CBDC) research in the new year.In its “Monetary Policy for 2020” brief, published on Dec. 27, BOK said it would continue to build on its existing research into distributed ledger technology, crypto assets, and CBDCs and to play an active role in overseeing and enhancing the security of payment and settlement systems. In parallel to organizing its task force, BOK says it will actively engage in discussions with the Bank of International Settlements (BIS) and other relevant international entities to keep abreast of CBDC development at other central banks.The bank says it plans to use BIS’ Principles for Financial Market Infrastructures (PFMI) to enact assessment principles for improving its oversight of domestic financial systems.
3.3 Technological Breakthrough
1. Bitcoin Kicks Off 2020 More Secure Than Ever as Hash Rate Hits Record
Calculation power is the speed at which a computer can complete a mathematical program. For example, the speed at which any group of information is received and converted into letters and numbers of a certain length is called calculation power. In bitcoin “mining”, it is necessary to find the corresponding mathematical solution for the solution of mathematical problems. For any hash value within a given range, the solution can only be obtained through the automatically generated random number. Therefore, how many times a mining machine can do the solution process per second is the representative of the calculation force, and its unit is hash / s. Strong hash rate suggests Bitcoin is a more appealing proposition for miners — more mining power translates into better network security and robustness against potential attacks.According to Blockchain, the metric hit 119 quintillion hashes per second (h/s) on Jan. 1.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, Huobi Japan got strategic investment from Tokai Tokyo Financial Holdings, BitOoda got seed round investment from Gary Ross，Calvin Schlenker，Roy Salame etc.
Huobi Research
About Us：
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.
Huobi Research Weekly aims to provide participators of the cryptocurrency market with the most up-to-date and comprehensive database to help them facilitate decision-making process.
Contact Us：
E-mail：
huobiresearch@huobi.com
Jianshu：
火币区块链
Twitter:
Huobi_Research
https://twitter.com/Huobi_Research
Medium:
Huobi Research
https://medium.com/@huobiresearch
Facebook:
Huobi Research
https://www.facebook.com/Huobi-Research-655657764773922
Website:
Disclaimer：
1. Huobi Research does not have any form of association with Blockchain projects or other third-parties mentioned in this report that could jeopardize the objectivity, independence and fairness of this report.
2. All outside information, data referenced in this report is from compliant and legitimate sources that we deem as reliable, and Huobi Research have conducted the due diligence concerning its authenticity, accuracy and completeness, but such due diligence does not provide any guarantee.
3. This report is only for reference purposes. Conclusions and viewpoints in the report do not constitute any form of investment advice on crypto assets. Huobi Research is not responsible for any losses resulting from the use of this report, unless stipulated by law. Under no circumstances should the readers give up their own investment analysis and judgements.
4. This report only reflects the opinions from Huobi Research on the day it was finalized. Future market condition changes may lead to updates of such judgements.
5. The report is copyrighted by Huobi Research, please cite the source when quote, and get approval from us when large amount of contents is referenced. Under no circumstances is reference, abridgment and modification contrary to original intention permitted.
