Huobi Research Weekley(VOl.88)(11.11–11.17)
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 4.46%, with 30 projects increased in value to varying degrees. According to coinmarketcap, as of November 17, 2019, the total market cap of cryptocurrencies was 235,2 billion U.S. dollars, decreased by 4.46%, and the total market cap of the top 100 cryptocurrencies was 231,6 billion U.S. dollars, decreased by 4.53% from last week. 2 cryptocurrency projects entered the top 100 this week, namely STEEM、ENJ. As of November 17, 2019, Bitcoin was traded at 8577.98 USD, 5.20% lower than its price last week. Ethereum was traded at 185.12 USD, decreased by 2.22%. The market segment distribution of the top 100 cryptocurrencies remained stable.
This week, the Hashrate of Bitcoin increased and the Hashrate of Ethereum decreased. The difficulty of mining Bitcoin and the difficulty of mining Ethereum both decreased. The average number of transactions per block of Bitcoin and the average block size of Bitcoin both decreased. The average number of transactions per block of Ethereum and the average block size of Ethereum both decreased. The average transaction fees of Bitcoin decreased and the average transaction fees of Ethereum decreased. HOT was the most active project on GitHub this week.
Bitcoin’s Hashrate was 95.57EH/s, increased by 6.34% from last week and Ethereum’s Hashrate was 177.19TH/s, decreased by 2.87% last week. The difficulty of mining Bitcoin was 12.720, decreased by 6.12% from last week. The average difficulty of mining Ethereum this week was 2454.342T, increased by 0.61% from that of previous week.
In network activity, the average number of transactions per block of Bitcoin decreased and the average block size of Bitcoin increased. The average number of transactions per block of Ethereum increased and the average block size of Ethereum increased this week. As of November 17th, 2019, the average transaction fees on the Bitcoin network this week was $0.690, decreased by 2.95% from last week. The average transaction fees on the Ethereum network this week was $0.116, decreased by 7.20%. Total number of addresses on the Blockchain and Ethereum network reached 43.32 million and 77.83 million, increased 0.13(0.31%) million and 0.40(0.52%) million respectively. HOT was the most active project on GitHub this week, with 112 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.
3 investment activities took place in the blockchain industry this week, Jiukuan Technology got angel wheel financing , HBSworld got strategic investment, Compoun got A round investment.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 4.46%, with 30 projects increased in value to varying degrees. According to coinmarketcap, as of November 17th, 2019, the total market cap of cryptocurrencies was 235.2 billion U.S. dollars, decreased by 4.46%, and the total market cap of the top 100 cryptocurrencies was 231.6 billion U.S. dollars, decreased by 4.53% from last week, among which, Synthetix Network Token had the largest increased of 47.6%, bringing its market cap ranking from №60 to №44, PRIZM Shares had the largest decreased of -27.56%, bringing its market cap ranking from №31 to №34. In addition, there were 2 projects that entered TOP100, namely, STEEM(STEEM, increased 5.40%, Now №99), Enjin Coin(ENJ, increased 4.62%, Now №100). As of November 17th, 2019, Bitcoin was traded at 8577.98 USD, 5.20% lower than its price last week. Ethereum was traded at 185.12 USD, 2.22% higher than its price last week.
The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 14.45% compared with the same period of last week. In this week, 41 of the top 100 projects increased in 24h trading volume, led by BCD with a weekly increase of 684.17%; there were 57 projects decreased in their 24h trading volume, there were 31 projects that saw over 20% decrease in their 24h trading volume, while 4 projects fell by more than 50%, led by MEXC, with a decreased of 76.49%.
Figure 1.1: The Market cap and 24-hour Trading Volume for TOP100 cryptocurrencies
The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On November 17th, 2019, the overall market cap of the top 10 cryptocurrencies was 2093.20 billion USD, decreased by 4.90% from last week, accounting for 89.00% of the total market capitalization of cryptocurrencies, decreased by 0.42% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 65.84%, decreased by 0.52% from last week.
Figure 1.3: TOP10 Cryptocurrencies’ Market Share of Total Cryptocurrencies Market Changes
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of coin project and the average market cap of application projects got the largest decrease. As of November 17th, 2019,the total market cap of coin projects reached 1736.81 billion USD, decreased by 5.33%. The average market cap of coin projects reached 4.57billion USD, decreased by 2.84%. The total market cap of platform projects reached 30.19 billion USD, decreased by 1.83%. The average market cap of platform projects reached 1.04 billion USD, decreased by 1.83%. The total market cap of application class projects reached 23.12 billion USD, decreased by 2.76%. The average market cap of application class projects reached 8.26 billion USD, decreased by 6.24%. The total market cap of asset-backed token projects reached 4.63 billion USD, decreased by 0.06%. The average market cap of asset-backed token projects reached 0.93 billion USD, increased by 0.06%.
Figure 1.4: TOP100 Cryptocurrencies Market Segment Capitalization
Figure 1.5: TOP100 Cryptocurrencies Segment Average Market Cap
The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 17th, 2019, among the top 100 projects, the number of coin class projects decreased 1, application class projects increased 1, platform class projects remained the same and asset-backed token class remained the same. The largest overall market cap by segment was still coin projects, accounting for 74.98% 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 and the hashrate of Ethereum decreased by this week. From November 11th, 2019 — November 17th, 2019, the average bitcoin Hashrate for the entire network reached 95.57 EH/s, increased by 6.34% from the previous week.
Average Hashrate for the entire Ethereum network was 177.19TH/s this week, decreased by 2.87%.
Figure 2.1: Bitcoin Hashrate Changes
Figure 2.2: Ethereum Hashrate Changes
This week, the difficulty of mining Bitcoin decreased and the difficulty of mining Ethereum decreased. As of November 17th 2019, average difficulty for mining Bitcoin this week was 12.720T, decreased by 6.12% from last week. The average difficulty of mining Ethereum this week was 2454.342TH, decreased by 0.61% from that of previous week.
The number of blocks in Bitcoin increased by 8.66%. Top 5 rankings changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks dereased 6.41%. In the past week, Bitcoin mined 1054 blocks, increased 8.66% from the previous week. Among the top five pools were F2Pool, Poolin, BTC.com, AntPool, Viabitcoin these 5 pools mined 196, 183, 144, 94 and 80 blocks respectively, accounting for 18.46%, 17.23%, 13.56%, 8.85% and 7.53% of all Bitcoins mined this week. The Hashrate was 17.73EH/s, 16.56EH/s, 13.03EH/s, 8.51EH/s and 7.24EH/s respectively.
In the past week, Ethereu’s entire network mined 44652 blocks, decreased 6.41% from the previous week. The top five pools were SparkPool, Ethermine, F2pool_2, Nanopool and Zhizhu.top, each mined 13427, 10348, 4583, 3786 and 2193 blocks respectively, accounting for 29.983%, 23.1075%, 10.2340%, 8.4543% and 4.8971% of all Ethereum mined this week, respectively.
Figure 2.5: Distribution of Bitcoin Mine Pool
Figure 2.6: Distribution of Ethereum Mine Pool
2.2 Activity Statistics
The average number of transactions per block decreased and the average block size of Bitcoin both decreased. The average number of transactions per block decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from November 11th, 2019-November 17th, 2019, the average size of each block was 1.03MB, decreased 8.85% form last week; there were on average 2117 transactions recorded in each block, decreased by 8.20% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 111.80, decreased by 1.32%. The average size of each block was 21879 bytes, decreased by 2.14% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 2.05%. Number of unconfirmed transactions in Ethereum increased by 2.27% from the previous week. As of November 17th, 2019, the number of 7-day average unconfirmed transactions in Bitcoin network was 6769, decreased by 2.05% from last week. There were 36926.50 unconfirmed transactions in the Ethereum network, increased by 2.27% from last week, with the lowest amount of unconfirmed transactions in the week being 5020 and the highest amount being 44849.
Figure 2.11: Unconfirmed Transaction in Bitcoin
Figure 2.12: Unconfirmed Transaction in Ethereum
Total transaction fees of Bitcoin decreased. Total transaction fees of Ethereum decreased. As of November 17th, 2019, average transaction fees of Bitcoin this week was $0.690, decreased by 2.95% from last week. Average transaction fees of Ethereum this week was $0.116, decresead by 7.20%.
Figure 2.13: Bitcoin, Ethereum Average Transaction Fees
The average number of distinct miners per day in Ethereum decreased by 2.89% from last week. From November 11th, 2019-November 17th, 2019, the average number of distinct miners per day in Ethereum this week was 57.20, decreased 2.89% from last week.
Figure 2.14: Number of Distinct Miners Per Day
The number of nodes in Bitcoin decreased and the number of Ethereum decreased this week. As of November 17th, 2019, there were 9453 Bitcoin nodes, decreased by 1.62% compared to last week, of which 2440 nodes were in the U.S, 1899 nodes were in Germany, and 308 nodes were in China(№8), each accounting for 25.81%, 20.09% and 3.26% of the total number of Bitcoin nodes, respectively.
As of November 17th, 2019, there were 7580 Ethereum nodes, decreased by 1.13% from the previous week. Specifically, there were 1974 nodes in the U.S, 1211 nodes in China, and 681 nodes in Germany, each accounting for 26.04%, 15.98%, 8.98% of total number of nodes, respectively.
Figure 2.15: Bitcoin nodes ranking
Figure 2.16: Ethereum nodes ranking
This week, the growth rate for new addresses of Bitcoin and Ethereum both increased. According to the data on blockchain.info, as of November 17th, 2019, the total number of Blockchain accounts reached 43319885, increased by 132098 (0.31%) this week.
According to the data on etherchain, as of November 10th, 2019, the total number of Ethereum addresses was 77826941 increased by 401184(0.52%) this week.
HOT was the most active project on GitHub this week. From November 11th, 2019-November 17th, 2019, HOT was the active project repository on GitHub with a total of 112 commits.
Figure 2.19: GitHub Code Activity
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 975k, 505k and 156k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 991k, 942k, and 485k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Chinese VeChain Tea Traceability Platform Gets Official Seal of Approval
A tea traceability platform powered by VeChain received an official endorsement from the Shuangjiang county government at its launch on Nov. 13. VeChain partnered with leading tea producers in the region to implement the traceability platform. The entire lifecycle of a tea brick from raw material to the consumer will be recorded on the VeChainThor blockchain, which customers can access by scanning a QR code or NFC tag with their smartphone.The Pu’er Tea Traceability Platform is one of the first third-party platforms to index into the National Important Products Traceability System, put in place by the Chinese Central Government. A local Department of Commerce representative said:“We should attach great significance to this tea traceability platform, sparing no efforts to ensure every tea brick has traceable origin, verified proper distribution and logistics, and authentic qualification, which can certainly raise the reputation of Yunnan tea globally.”
2. This Blockchain-Based Social Media Network Is The First Apple Pay Approved DApp
During day two of BlockShow Asia 2019, Pepo founder and CEO Jason
Goldberg hosted a keynote to present his new product. With 15,000 users
and more than 45,000 peer-to-peer transactions to its credit, Pepo aims to
change the way people create content for the crypto community.“We are
already among the biggest DApps in the world. We are now number 12, and
we aim to reach the top really soon,” Goldberg said. “Pepo is the result of
almost four years of research and listening to the crypto community.”The
app is available for download on Apple and Android devices, and it behaves
like a social media network with a built-in crypto wallet. People can use
their cryptocurrencies to tip their favorite creators, as well as to buy things
on its marketplace.Pepo lets its users upload short videos, and their
followers to pay them tips using the built-in wallet. The tokens are used to
tip the creators you choose, but also can be spent on the marketplace, which
sort of allows its users to buy Amazon, Apple and stores gift cards using
3. Walmart Canada Rolls Out Blockchain-Based Freight and Payment System
Walmart Canada — the retail giant’s Canadian branch — has rolled out an automated blockchain-based network for freight tracking and payments management, according to a Nov. 14 press release.The new system, which was developed in collaboration with blockchain company DLT Labs, is designed to improve freight and payment processing, enabling users to automatically trace deliveries, verify transactions and handle payments and reconciliation.The release further states that the network can be integrated with a business’s legacy system and “manages, integrates and synchronizes all the supply chain and logistics data in real time, aggregating the data between Walmart Canada and its fleet of third-party trucks on a shared ledger.”
3.2 International Policies
1. FinCEN Cheif: US Wil Strictly Enforce Anti-Money Laundering In Crypto
The United States Financial Crimes Enforcement Network (FinCEN) Director Kenneth Blanco said that Anti-Money Laundering (AML) laws will be strictly enforced in the world of cryptocurrencies.On Nov. 15, Reuters reported that Blanco made it crystal clear that cryptocurrency companies engaged in money service businesses will have to comply with AML laws and share information about their customers.In what has now become known as the travel rule, the Financial Action Task Force (FATF) guidelines require regulators and Virtual Asset Service Providers (VASPs) to collect and share personal data of transactions. The recommendation imposes the same standards on the cryptocurrency sector as are normally shouldered by the banking industry.Blanco further pointed out that FinCEN has been conducting investigations that include compliance with the travel rule since 2014, adding that it is the most commonly cited violation among money service businesses engaged in digital currencies.
2. US Federal Judge Rules in Favor Bitcoin IRA in Case Against Kingdom Trust
A United States federal judge has ordered asset custodian Kingdom Trust to
fully restore data access to all affected clients following the unilateral
termination of customers’ access to their own account information on
Bitcoin IRA’s website.Filed on Nov. 12, a court document reveals that
South Dakota District Court Federal Judge Karen E. Schreier ruled in favor
of Bitcoin IRA in the case against Kingdom Trust, where the latter allegedly
breached a referral agreement by terminating customers’ access to their
account data on Bitcoin IRA’s platform without providing prior notice.As
reported last month, Bitcoin IRA partnered with digital asset lending firm
Genesis Capital to offer investors the opportunity to earn interest on crypto
and cash holdings. Bitcoin IRA has reportedly provided digital asset IRAs
since 2016 and processed over $350 million in investments, onboarding
3. Indian Parliament Will not Consider Total Ctypto Ban in Winter Session
The Indian government will not be considering a cryptocurrency-related
draft bill during the winter session of Parliament as was previously planned.
The draft bill entitled “Banning of Cryptocurrency & Regulation of Official
Digital Currencies” is not included in the session agenda issued in India’s
lower house of parliament, Lok Sabha, on Nov. 14.However, the proposed
bill does not apply to Bitcoin’s (BTC) underlying technology of blockchain
as well as other related technologies associated with the development of the
technology, including blockchain-based financial applications.Sohail
Merchant, CEO of Indian crypto exchange Pocketbits, considered the news
a temporary relief, stressing that the community now has more time to
circle the wagons and protect the industry.
4. Department of Homeland Security Awards ＄200K to Develop Blockchain Security Tech
The United States Department of Homeland Security (DHS) has awarded Virginia-based Digital Bazaar $199,984 to develop its blockchain security technology, according to a press release, Nov. 14.The Department’s Science and Technology Directorate (S&T) made the Phase 1 award, as it explores blockchain and distributed ledger technology (DLT) solutions to fulfill common needs across DHS missions.Digital Bazaar will use the award for its “Interoperable Enterprise Identity and Credential Life-cycle Management” project.This aims to build on the company’s existing technology which supports emerging web standards such as Decentralized Identifiers and Verifiable Credentials. The existing technology will be enhanced with enterprise workforce and credential lifecycle management features. The long-term goal is to bring this customized solution to market. S&T’s Silicon Valley Innovation Program Technical Director, Anil John, explained:
3.3 Technological Breakthrough
1.The aBey Foundation Introduces new Crypto-Enabled Credit Card Technology
Speaking at BlockShow Asia 2019, aBey Foundation co-founder Dr. Ciprian Pungila announced aPay, a payment system that lets the cryptocurrency community use its assets for daily payments via credit card integrations.aPay users can send their cryptocurrencies to the platform and gain access to three different credit cards that operate with UnionPay, Mastercard, and Visa. They can therefore use their cryptocurrencies for daily payments.Based on new blockchain technology developed by the aBey Foundation, aPay promises to be a speedy blockchain that introduces new architecture and high-performance computing that would enable faster transactions. “aBey is designed and built to be among the fastest and most flexible open source chains in the world, providing a practical solution for common e-commerce use cases,” Punglia said.The co-founder revealed that aPay supports Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Dash, EOS, Ripple, ZCash, and a native cryptocurrency built by aBey. He clarified that aPay does not require the merchant to accept cryptocurrencies. They only need to accept conventional credit card payments, and aPay’s solution automatically converts the payment from crypto to fiat.
2.JPMorgan Automates Derivatives Margin Payments With DLT Firm
Major global investment bank JPMorgan has developed a new solution for derivatives designed to speed up cash and collateral transfers. The tool was developed in partnership with California-based fintech firm Baton Systems and aims to enable the real-time movement of transfers to multiple clearinghouses, the firm announced Nov. 14.The current process requires collateral custodians to manually coordinate multiple systems and reports. Integrated with JPMorgan’s proprietary automation system, the new solution reportedly eliminates manual intervention in the collateral process and therefore expedites the collateral workflow. According to the announcement, the platform automates margining and collateral flows and allows users to see the flow of assets between JPMorgan and the participatory clearinghouses.
4.Weekly Investment Activities
3 investments activities took place in the blockchain industry this week, Jiukuan Technology got Angel Wheeling Financing from Huoju VC, HBSworld got strategic investment from LD Captial, IOST and Aries, Compound got A round investment from Andreessen Horowitz.
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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