Huobi Research Weekly (Vol.96) 2020.1.6–2020.1.12）
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 10.65%, with 75 projects increased in value to varying degrees. According to coinmarketcap, as of January 12th, 2020, the total market cap of cryptocurrencies was 218.8 billion U.S. dollars, increased by 10.65%, and the total market cap of the top 100 cryptocurrencies was 217.5 billion U.S. dollars,increased by 10.9% from last week. 2 cryptocurrency projects entered the top 100 this week, namely XET and NOAH As of January 12th, 2020, Bitcoin was traded at 8192.49USD, 10.62% higher than its price last week. Ethereum was traded at 145.87USD, 7.14% higher than its price last week.
The hashrate of Bitcoin increased but Ethereum decreased 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 increased and 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 and Ethereum both increased. RDN was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 106.8EH/s, increased by 2.69% from the previous week.Average Hashrate for the entire Ethereum network was 152.47TH/s this week, decreased by 0.67%. average difficulty for mining Bitcoin this week was 13.79T, increased by 4.47% from last week. The average difficulty of mining Ethereum this week was 2062.01TH, decreased by 11.84% from that of previous week.
In network activity, the average size of each block was 984.3KB, increased 11.66% form last week; there were on average 2022 transactions recorded in each block, increased by 7.21% from the previous week. the average number of transactions per block in Ethereum this week was 92.5, decreased by 4.74%. The average size of each block was 20125.71 bytes, decreased by 5.43% compared to last week. As of January 12th, 2020, average transaction fees of Bitcoin this week was $0.483, increased by 52.37% from last week. Average transaction fees of Ethereum this week was $0.0821, incresead by 23.64%. The total number of Ethereum addresses was 82255512 increased by 169683 (0.21%) this week. RDN was the most active project on GitHub this week, with 90 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, Finoa got seed round investment that was led by Venture Stars and coparion, Stellarport got bought by Litemint.
1. Weekly Market Review
- Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 10.65%, with 75 projects increased in value to varying degrees. According to coinmarketcap, as of January 12th, 2020, the total market cap of cryptocurrencies was 218.8 billion U.S. dollars, increased by 10.65%, and the total market cap of the top 100 cryptocurrencies was 217.5 billion U.S. dollars,increased by 10.9% from last week, among which, NOAH had the largest increased of 84.77%, bringing its market cap ranking from №136 to №94, SNX had the largest decreased of -28.13%, bringing its market cap ranking from №39 to №48. In addition, there were 2 projects that entered TOP100, namely, ETERNAL TOKEN (XET, increased 43.36%, Now №89), Noah Coin (NOAH, increased 84.77%, Now №94). As of January 12th, 2020, Bitcoin was traded at 8192.49USD, 10.62% higher than its price last week. Ethereum was traded at 145.87USD, 7.14% higher than its price last week.
The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 17.32% compared with the same period of last week. In this week, 63 of the top 100 projects increased in 24h trading volume, led by DCR with a weekly increase of 1724.10%; there were 33 projects decreased in their 24h trading volume, there were 13 projects that saw over 20% decrease in their 24h trading volume, while 3 projects fell by more than 50%, led by FAB, with a decreased of 53.77%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On January 12th, 2020, the overall market cap of the top 10 cryptocurrencies was 196.2 billion USD, increased by 11.18% from last week, accounting for 89.68% of the total market capitalization of cryptocurrencies, increased by 0.43% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 67.97%, decreased by 0.02% from last week.
2. Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Coin projects got the largest increase. The average market cap of Asset-backed projects got the largest increase. As of January 12th, 2020, the total market cap of coin projects reached 167.4 billion USD, increased by 11.49%. The average market cap of coin projects reached 4.65 billion USD, decreased by 0.90%. The total market cap of platform projects reached 25.3 billion USD, increased by 8.98%. The average market cap of platform projects reached 0.76 billion USD, increased by 5.68%. The total market cap of application class projects reached 19.77 billion USD, increased by 8.96%. The average market cap of application class projects reached 0.70 billion USD, increased by 24.52%. The total market cap of asset-backed token projects reached 4.86 billion USD, increased by 8.93%. The average market cap of asset-backed token projects reached 1.62 billion USD, increased by 45.24%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of January 12th, 2020, among the top 100 projects, the number of coin class projects increased 4, application class projects increased 1, platform class projects decreased 4 and asset-backed token class decreased 1. The largest overall market cap by segment was still coin projects, accounting for 77.00% 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 January 6th, 2020 — January 12th, 2020, the average bitcoin Hashrate for the entire network reached 106.8EH/s, increased by 2.69% from the previous week.
Average Hashrate for the entire Ethereum network was 152.47TH/s this week, decreased by 0.67%.
This week, the difficulty of mining Bitcoin increased and the difficulty of mining Ethereum decreased. As of January 12th, 2020, average difficulty for mining Bitcoin this week was 13.79T, increased by 4.47% from last week. The average difficulty of mining Ethereum this week was 2062.01TH, decreased by 11.84% from that of previous week.
The number of blocks in Bitcoin decreased by 1.80%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks inreased 16.86%. In the past week, Bitcoin mined 1089 blocks, decreased 1.80% from the previous week. Among the top five pools were F2Pool、 Poolin、BTC.com、AntPool、ViaBTC, these 5 pools mined 197、183、130、105 and 71 blocks respectively, accounting for 18.09% 、16.80%、11.94%、9.64% and 6.52% of all Bitcoins mined this week. The Hashrate was 19.32EH/s、17.95EH/s、12.75EH/s、10.30EH/s and 6.96EH/s, respectively.
In the past week, Ethereu’s entire network mined 48195 blocks, increased 16.86% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Nanopool and Zhizhu.top, each mined 15560、10716、5180、3899 and 1891 blocks respectively, accounting for 32.2855%、22.2347%、10.7480%、8.0901% and 3.9236% of all Ethereum mined this week, respectively.
2.2 Activity Statistics
The average number of transactions per block increased and 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 January 6th, 2020-January 12th, 2020, the average size of each block was 984.3KB, increased 11.66% form last week; there were on average 2022 transactions recorded in each block, increased by 7.21% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 92.5, decreased by 4.74%. The average size of each block was 20125.71 bytes, decreased by 5.43% compared to last week.
Number of unconfirmed transactions in Bitcoin increased by 73.38%. Number of unconfirmed transactions in Ethereum increased by 5.72% from the previous week. As of January 12th, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 5354, increased by 73.38% from last week. There were 64318.06 unconfirmed transactions in the Ethereum network, increased by 5.72% from last week, with the lowest amount of unconfirmed transactions in the week being 4581 and the highest amount being 117430.
Total transaction fees of Bitcoin and Ethereum both increased. As of January 12th, 2020, average transaction fees of Bitcoin this week was $0.483, increased by 52.37% from last week. Average transaction fees of Ethereum this week was $0.0821, incresead by 23.64%.
The average number of distinct miners per day in Ethereum increased by 1.79% from last week. From January 6th, 2020-January 12th, 2020,the average number of distinct miners per day in Ethereum this week was 56.8, increased 1.79% from last week.
The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum increased this week. As of January 12th, 2020, there were 11111 Bitcoin nodes, decreased by 1.38% compared to last week, of which 2398 nodes were in the U.S, 1925 nodes were in n/a, and 262 nodes were in China(№9), each accounting for 21.58%, 17.33% and 2.36% of the total number of Bitcoin nodes, respectively.
As of January 12th, 2020, there were 7593 Ethereum nodes, increased by 0.21% from the previous week. Specifically, there were 1934 nodes in the U.S, 1207 nodes in China, and 708 nodes in Germany, each accounting for 25.47%, 15.90%,9.32% 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 etherchain, as of January 12th, 2020, the total number of Ethereum addresses was 82255512 increased by 169683 (0.21%) this week.
RDN was the most active project on GitHub this week. From January 6th,2020-January 12th,2020, RDN was the active project repository on GitHub with a total of 90 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 969k, 517k and 157k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1million , 942k, and 493k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Ant Financial Aims to Launch Its Enterprise Blockchain Platform This Month
Ant Financial, the financial affiliate of Chinese e-commerce giant Alibaba, is reportedly launching its enterprise-focused “Ant Blockchain Open Alliance” platform this month.Local news agency Bihai123 reported on Jan. 8 that Ant Financial Group vice president Jiang Guofei, who is also president of Ant’s smart technology business group, revealed that the network has been live in beta as of Nov. 2019, and will imminently be launched as a fully operational chain. The vice president alleges that the Ant Blockchain will be the first open alliance chain to share platform use rights, enabling small-scale and micro-enterprises and developers to enter the blockchain industry at a lower cost to develop and launch their own applications.
2. Major Spanish Bank Latest to Bring Blockchain Into European Finance
On Jan. 3 Spain-based CaixaBank added the blockchain-powered finance platform We.trade to its list of services. CaixaBank has now become one of the first banks in Europe to provide its customers access to blockchain technology.Launched in 2017, We.trade is a finance platform powered by IBM’s blockchain technology. It was developed by a consortium of 15 financial institutions from around Europe, like UBS and Societe Generale, and it works to provide businesses with a digital, trustless platform for verifying financial information. We.trade’s open API architecture lets it track and trace goods shipped by any of the 400 logistics companies throughout Europe who are also using the platform.We.trade uses blockchain to facilitate the transaction process for suppliers and buyers on a single, shared platform. We.trade generates smart contracts that link the trading operation with the financing or payment that prevents any default risk for companies, which can increase business globalization.
3. US State of Virginia Legislature Looks to Blockchain for Elections
In the United States, Virginia’s state legislature looks to study blockchain to improve elections and voting.Prefiled on Dec. 27 and scheduled for offering on Jan. 8, a new bill requesting further study into blockchain-based elections has emerged in Virginia’s General Assembly. The bill, House Joint Resolution 23, asks the Department of Elections to determine whether blockchain technology should be considered to secure voter records and election results. The bill’s patron is state delegate and cybersecurity specialist Hala Ayala (D-51). It is currently waiting for committee assignment, and will have a long road ahead of it on its way to potentially becoming law. However, it could change the way a state of over eight million people votes.Per the bill’s current tenets, the department will also have to determine whether the costs and benefits of using blockchain technology outweigh those of traditional registration and election security measures. The department is also expected to make recommendations on how to implement the technology.
3.2 International Policies
1. Qatar Financial Centre Puts Blanket Ban on Cryptocurrency Businesses
The Qatar Financial Centre Regulatory Authority (QFCRA) announced that virtual asset services may not be conducted in or from the Qatar Financial Centre (QFC).The regulator announced the new measures in a tweet published on Dec. 26, stating that authorized firms are not permitted to provide or facilitate the provision or exchange of crypto assets and related services until further notice. The QFCRA warns:“The Regulatory Authority shall impose penalties in accordance with its rights and obligations in case of any violation of undertaking activities that are not permitted in the QFC.” The QFCRA defines virtual asset services as the exchange between crypto and fiat or crypto and crypto, transfer of crypto assets, safekeeping or administration of virtual assets or tools for their management, and participation in or provision of financial services related to virtual assets. The governor of the Qatari central bank Sheikh Abdullah bin Saud Al Thani commented:“The State of Qatar affirms that fighting money laundering and terrorist financing requires a strict and effective regulatory and legislative framework, whereby the powers and responsibilities of both government agencies and relevant ministries are defined in relation to combating money laundering and terrorist financing.”
2. US SEC Prioritizes Crypto Compliance in 2020, But Hints at Kinder Gentler Approach
The United States Securities Exchange Commission continues to scrutinize crypto as its compliance office adds fintech and digital assets to its annual priorities list.Per a Jan. 7 announcement from the SEC’s Office of Compliance Inspections and Examinations (OCIE), the agency has put new financial technologies including digital assets among major concerns in the coming fiscal year.In the words of the regulator, new technological developments in capital formation and investment advice “warrant ongoing attention and review.” OCIE’s 2020 priorities for crypto differ from those of 2019 in that they seem more broadly interested in the positive potential of financial technologies. The office wrote that “OCIE also will continue to identify and examine SEC-registered firms engaged in the digital asset space” — maybe indicating a less retributive stance towards crypto in 2020.
3. South Korean Presidential Committee Recommends Allowing Bitcoin Derivatives
The South Korean Presidential Committee on the Fourth Industrial Revolution (PCFIR) has recommended the government to allow financial institutions to launch cryptocurrency-based financial products.Local English-language news outlet BusinessKorea reported on Jan. 6 that the committee recommended products such as Bitcoin (BTC) derivatives to be allowed as part of a strategy for the institutionalization of cryptocurrencies. The PCFIR also suggested that the local financial sector should develop and introduce a Korean custody solution to avoid relying only on foreign custodians when handling crypto assets. The committee also noted that Bitcoin should be listed directly on the Korea Exchange — the country’s sole securities operator located in Busan. The committee also advised the government to consider introducing business licenses or guidelines for cryptocurrency exchanges and integrating products related to crypto-assets into the financial system in the mid to long term. The committee reportedly stated:“As of May 2019, daily crypto-asset trade hit more than 80 trillion won (over $68 billion) in the world, so it is no longer possible to stop crypto-asset trade. The Korean government has to gradually allow institutional investors to deal in crypto assets and promote over the counter (OTC) desks dedicated to institutional investors’ trade.”
3.3 Technological Breakthrough
1. China’s Nationwide Blockchain Network BSN Will Launch in April 2020
China’s nationwide blockchain network, the Blockchain-based Service Network (BSN), will launch in April 2020, six months after it was rolled out for testing.Backed by Chinese government policy think tank the State Information Center (SIC), the project aims to provide a trusted and scalable infrastructure for supporting new blockchain projects as well as the development of smart cities and the digital economy. Tang Sisi, deputy head of the Smart City Development Research Center of the China’s State Information Center (SIC), announced the news at the China Urban Regulation Innovation Forum in early January, Chinese finance-focused publication Sina Finance reported on Jan. 7. According to the executive, the BSN will be officially launched for commercial operation in April after the network was first released for internal beta testing in October 2019. the BSN network is an interregional public infrastructure network that was jointly developed by the SIC, major China’s state-run telecom China Mobile and the Chinese government-supported payment card network China UnionPay, among others. First piloted in the city of Hangzhou, the capital of east China’s Zhejiang province, the BSN specifically intends to reduce technical and economic costs associated with developing blockchain adoption, SIC’ deputy director Zhang Xueying said.
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, Finoa got seed round investment that was led by Venture Stars and coparion, Stellarport got bought by Litemint.
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