Huobi Research Weekly(10.21–10.27)(Vol.85)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increase of 14.73%, with 78 projects increased in value to varying degrees. According to coinmarketcap, as of October 27, 2019, the total market cap of cryptocurrencies was 255,66 billion U.S. dollars, increased by 14.73%, and the total market cap of the top 100 cryptocurrencies was 249,23 billion U.S. dollars, increased by 13.38% from last week. 4 cryptocurrency projects entered the top 100 this week, namely Cryptonex 、RIF Token、aelf、Enjin CoinMaximine. As of October 27, 2019, Bitcoin was traded at 9551.71 USD, 16.17% lower than its price last week. Ethereum was traded at 184.24 USD, increased by 4.96%. 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 increased. The average number of transactions per block of Bitcoin increased 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 increased. The average transaction fees of Bitcoin decreased and the average transaction fees of Ethereum remained the same. INS was the most active project on GitHub this week.

Bitcoin’s Hashrate was 100.1EH/s, increased by 5.71% from last week and Ethereum’s Hashrate was 178.844TH/s, decreased by 6.41% last week. The difficulty of mining Bitcoin was 13.309T, increased by 2.31% from last week. The average difficulty of mining Ethereum this week was 2416.398T, decreased by 2.59% from that of previous week.

In network activity, the average number of transactions per block of Bitcoin increased 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 decreased this week. As of Octorber 27th, 2019, the average transaction fees on the Bitcoin network this week was $1.246, increased by 183.83% from last week. The average transaction fees on the Ethereum network this week was $0.126, renmained the same. Total number of addresses on the Blockchain and Ethereum network reached 42.86 million and 76.42 million, increased 0.16(0.38%) million and 0.76(0.69%) million respectively. INS was the most active project on GitHub this week, with 34 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, PhonePe got strategic investment, Coinplug got strategic investment, Mars Finance got strategic investment.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 14.73%, with 78 projects increased in value to varying degrees. According to coinmarketcap, as of October 27th, 2019, the total market cap of cryptocurrencies was 255.6 billion U.S. dollars, increased by 14.73%, and the total market cap of the top 100 cryptocurrencies was 249.23 billion U.S. dollars, increased by 13.38% from last week, among which, Cryptonex had the largest increased of 613.02%, bringing its market cap ranking from №240 to №55, Swipe had the largest decreased of -19.31%, bringing its market cap ranking from №52 to №59. In addition, there were 4 projects that entered TOP100, namely, Cryptonex(CNX, Now №55), RIF Toke(RIF, Now №99), Aelf TOKEN(ELF, increased 40.66%, from №106 to №85), Enjin Coin(ENJ, increased 12.63%, Now №100). As of October 27th, 2019, Bitcoin was traded at 9551.71 USD, 16.71% higher than its price last week. Ethereum was traded at 184.24 USD, 4.96% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 99.79% compared with the same period of last week. In this week, 79 of the top 100 projects increased in 24h trading volume, among which, 64 of the top 100 projects increased by more than 20% in 24h trading volume, 48 of the top 100 projects increased by more than 50% in 24h trading volume, led by BTM with a weekly increase of 2396.41%; there were 48 projects decreased in their 24h trading volume, there were 21 projects that saw over 20% decrease in their 24h trading volume, while 11 projects fell by more than 50%, led by SXP, with a decreased of 95.28%.

Figure 1.1: The Market cap and 24-hour Trading Volume for TOP100 cryptocurrencies

Source: coinmarketcap

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On October 27th, 2019, the overall market cap of the top 10 cryptocurrencies was 2275.64 billion USD, increased by 13.79% from last week, accounting for 89.01% of the total market capitalization of cryptocurrencies, decreased by 0.82% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 67.31%, increased by 0.88% from last week.

Figure 1.2: TOP10 Cryptocurrencies’ Market Share of Total Cryptocurrencies Market

Source: coinmarketcap

Figure 1.3: TOP10 Cryptocurrencies’ Market Share of Total Cryptocurrencies Market Changes

Source: coinmarketcap

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap and the average market cap of coin projects got the largest increase. As of October 27th, 2019,the total market cap of coin projects reached 1910.38 billion USD, increased by 15.82%. The average market cap of coin projects reached 4.77 billion USD, increased by 18.72%. The total market cap of platform projects reached 29.81 billion USD, increased by 9.41%. The average market cap of platform projects reached 1.07 billion USD, increased by 5.5%. The total market cap of application class projects reached 23.72 billion USD, increased by 2.98%. The average market cap of application class projects reached 9.12 billion USD, increased by 6.94%. The total market cap of asset-backed token projects reached 4.62 billion USD, increased by 0.2%. The average market cap of asset-backed token projects reached 0.92 billion USD, increased by 0.2%.

Figure 1.4: TOP100 Cryptocurrencies Market Segment Capitalization

Source: coinmarketcap

Figure 1.5: TOP100 Cryptocurrencies Segment Average Market Cap

Source: coinmarketcap

The market segment distribution of the top 100 cryptocurrencies remained stable. As of October 27th, 2019, among the top 100 projects, the number of coin class projects and application class projects both decreased 1, platform class projects increased 1 and asset-backed token class remained the same. The largest overall market cap by segment was still coin projects, accounting for 75.03% 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 October 21st, 2019 — October 27th, 2019, the average bitcoin Hashrate for the entire network reached 100.1 EH/s, increased by 5.71% from the previous week.

Average Hashrate for the entire Ethereum network was 178.84TH/s this week, decreased by 6.4%.

Figure 2.1: Bitcoin Hashrate Changes

Source: blockchain.info

Figure 2.2: Ethereum Hashrate Changes

Source: etherchain

This week, the difficulty of mining Bitcoin increased and the difficulty of mining Ethereum decreased. As of October 27th, 2019, average difficulty for mining Bitcoin this week was 13.309T, increased by 2.31% from last week. The average difficulty of mining Ethereum this week was 2480.646TH, decreased by 2.59% from that of previous week.

The number of blocks in Bitcoin decreased by 0.58%. BTC.com、Poolin、Unknown rankings raise, ViaBTC rankings rankings fall. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks inreased 0.53%. In the past week, Bitcoin mined 1020 blocks, decreased 0.58% from the previous week. Among the top five pools were Poolin, F2Pool, BTC.com, AntPool, Unknown these 5 pools mined 160, 158, 132, 127 and 99 blocks respectively, accounting for 15.69%, 15.49%, 12.94%, 12.45% and 9.71% of all Bitcoins mined this week. The Hashrate was 15.29EH/s, 15.1EH/s, 12.94EH/s, 12.45EH/s and 9.71EH/s respectively.

In the past week, Ethereu’s entire network mined 46048 blocks, increased 0.53% from the previous week. The top five pools were SparkPool, Ethermine, F2pool_2, Nanopool and Zhizhu.top, each mined 13363, 10622, 5301, 3927 and 2312 blocks respectively, accounting for 29.019%, 23.067%, 11.51%, 8.52% and 5.02% of all Ethereum mined this week, respectively.

Figure 2.5: Distribution of Bitcoin Mine Pool

Source:BTC.com

Figure 2.6: Distribution of Ethereum Mine Pool

Source:etherscan.io

2.2 Activity Statistics

The average number of transactions per block increased and the average block size of Bitcoin both decreased. The average number of transactions per block increased and the average block size of Ethereum increased this week. According to blockchain.info, from October 21rd, 2019-Octorber 27th, 2019, the average size of each block was 1.1MB, increased 4.1% form last week; there were on average 2164 transactions recorded in each block, decreased by 1.01% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 113.1, increased by 6.15%. The average size of each block was 20478 bytes, increased by 9.13% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 40.64%. Number of unconfirmed transactions in Ethereum increased by 25.29% from the previous week. As of October 27th, 2019, the number of 7-day average unconfirmed transactions in Bitcoin network was 7108, increased by 40.64% from last week. There were 40702.11 unconfirmed transactions in the Ethereum network, increased by 25.29% from last week, with the lowest amount of unconfirmed transactions in the week being 17504 and the highest amount being 48009.

Figure 2.11: Unconfirmed Transaction in Bitcoin

Source: blockchain.info

Figure 2.12: Unconfirmed Transaction in Ethereum

Source:etherscan.io

Total transaction fees of Bitcoin increased. Total transaction fees of Ethereum remained the same. As of October 27th, 2019, average transaction fees of Bitcoin this week was $1.246, increased by 183.83% from last week. Average transaction fees of Ethereum this week was $0.126, remained the same.

Figure 2.13: Bitcoin, Ethereum Average Transaction Fees

Source:bitinfocharts

The average number of distinct miners per day in Ethereum decreased by 1.46% from last week. From October 21st, 2019-October 27th, 2019, the average number of distinct miners per day in Ethereum this week was 58.14, increased 1.46% from last week.

Figure 2.14: Number of Distinct Miners Per Day

Source:etherchain

The number of nodes in Bitcoin decreased and the number of Ethereum decreased this week. As of October 27th, 2019, there were 9317 Bitcoin nodes, decreased by 0.11% compared to last week, of which 2394 nodes were in the U.S, 1893 nodes were in Germany, and 304 nodes were in China(№8), each accounting for 25.69%, 20.32% and 2.07% of the total number of Bitcoin nodes, respectively.

As of October 27th, 2019, there were 7406 Ethereum nodes, decreased by 13.55% from the previous week. Specifically, there were1964 nodes in the U.S, 1146 nodes in China, and 667 nodes in Germany, each accounting for 26.52%, 15.47%, 9.01% of total number of nodes, respectively.

Figure 2.15: Bitcoin nodes ranking

Source:bitnodes

Figure 2.16: Ethereum nodes ranking

Source:Ethernodes

This week, the growth rate for new addresses of Bitcoin and Ethereum both increased. According to the data on blockchain.info, as of October 27th, 2019, the total number of Blockchain accounts reached 42863183, increased by 162448 (0.38%) this week.

According to the data on etherchain, as of October 27th, 2019, the total number of Ethereum addresses was 76422535 increased by 520910(0.69%) this week.

INS was the most active project on GitHub this week. From October 21st, 2019-October 27th, 2019, INS was the active project repository on GitHub with a total of 34 commits.

Figure 2.19: GitHub Code Activity

Source:cryptomiso

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 978k, 501k and 156k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 988k, 941k, and 479k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. ConsenSys Uneveils Ethereum-Based Satellite Tracker

Blockchain software technology company ConsenSys has unveiled Trusat, a satellite tracking application based on the Ethereum (ETH) network. According to the firm’s tweet posted on Oct. 22, Trusat aims to tackle the problem of space debris that could damage Earth’s space infrastructure.The initiative hopes that its app’s users will track satellites in the night sky and record their positions in order to help create a record.Notably, this is not the first blockchain-based project that involves space. On Dec. 18, 2018, blockchain development firm Blockstream has expanded its satellite service and is now broadcasting Bitcoin’s (BTC) blockchain to all of Earth’s major land masses.

2. WeChat Pay Using Blockchain to Track Payments, Says Binance CEO

Binance CEO Changpeng Zhao (CZ) took to Twitter on Oct. 25, saying that he had “got word” that WeChat Pay puts receipts on the blockchain, along with a screengrab of a receipt with a link to a block explorer.Globally, companies in almost every industry are implementing blockchain solutions, so why should CZ feel the need to comment on this one?Perhaps it has something to do with a story from earlier this month, in which CZ announced the launch of payment on-ramps for Binance in China, utilizing WeChat Pay and Alipay payment services.Alipay was quick to refute the claims, saying that any payments related to cryptocurrency were banned from its service. WeChat also confirmed its anti-crypto stance, and there is no suggestion that WeChat Pay is anything other than a centralized payment system, utilizing blockchain presumably for invoicing.As Cointelegraph reported in March, China’s first blockchain-based electronic invoice for a subway ride was issued at the Futian Station in the Shenzhen Metro. This technology was jointly developed by the Shenzhen Municipal Taxation Bureau and WeChat’s parent company and Chinese tech giant Tencent.

https://cointelegraph.com/news/wechat-pay-using-blockchain-to-track-payments-says-binance-ceo

3. Publicly traded software firm Splunk is using Ethereum sidechain xDai Chain to power the payments

Publicly traded software firm Splunk is using Ethereum sidechain xDai Chain to power the payments at its Las Vegas SplunkConf 2019. Per a report shared with Cointelegraph on Oct. 24, conference participants have the opportunity to use a dedicated, modified version of xDai’s Burnerwallet dubbed PonyPurse. Splunk’s Head of Blockchain and DLT Nate McKervey explained in a tweet sent on Oct. 21 that over 10,000 event attendees were able to spend Buttercup Bucks (BCB).

https://cointelegraph.com/news/18-b-data-firm-using-xdai-chain-sidechain-for-payments-at-conference

4. Crypto App Revolut Confirms Mastercard on Board fo 2019 US Expansion

Cryptocurrency-friendly internet banking app Revolut plans to launch in the United Stateslater this year, the company has confirmed.In a press release on Oct. 22, Revolut said its expanding partnership with Mastercard would allow it to enter the U.S. market by the end of 2019. United Kingdom-based Revolut has offered consumers both Visa and Mastercard spending since its launch in 2015. In 2017, it began offering the exchange of three cryptocurrencies: Bitcoin (BTC), Ether (ETH) and Litecoin (LTC). This later increased to five with the addition of Bitcoin Cash (BCH) and XRP. Unlike its fiat product, however, the crypto exchange facility is not backed by the U.K.’s finance regulator.

https://cointelegraph.com/news/crypto-app-revolut-confirms-mastercard-on-board-for-2019-us-expansion

5. China Studying Blockchain and AI for Cross-Border Financing

China is looking into the application of blockchain and Artificial Intelligence (AI) to cross-border financing, Reuters reports on Oct. 27.Lu Lei, the deputy head of the Chinese regulator State Administration of Foreign Exchange (SAFE), reportedly said that there are plans to use blockchain and AI in cross border financing, with particular attention devoted to risk management applications. Lei noted that SAFE promotes the application of fintech and AI to international finance and macro-prudential management.His urge to innovate is in line with the remarks of China’s President Xi Jinping, who recently called for the country to accelerate its adoption of blockchain technologies as a core for innovation.

https://cointelegraph.com/news/china-studying-how-blockchain-and-ai-can-be-used-in-forex

3.2 International Policies

1. US Financial Watchdogs Join UK’s Global Financial Innovation Network

The Global Financial Innovation Network (GFIN) — an alliance of 50 organizations aimed at supporting financial innovation — has onboarded an array of United States regulatory agencies.According to an Oct. 24 press release published by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) and the SEC itself have joined the GFIN.The watchdogs’ participation in the initiative is geared to further promoting their expertise both in the U.S. and abroad, helping financial regulators represent the interests and needs of the country and its financial service stakeholders.

https://cointelegraph.com/news/us-financial-watchdogs-join-uks-global-financial-innovation-network

2. UK Gov’t: FCA Will Make Final Decision on Banning Crypto Derivatives

The government of the United Kingdom has stressed that is up to

regulators, not the executive, to decide whether to press ahead with a

proposed ban on certain crypto derivatives for retail investors.Finance

Feeds reports that on Oct. 21, the Economic Secretary to the Treasury John

Glen responded to a series of questions about developments in the U.K.’s

approach to crypto-assets, including the U.K. Financial Conduct Authority’s

ongoing consideration of the ban. Glen refrained from giving a determinate

answer, underscoring that:“The final decision […] is a matter for the

Financial Conduct Authority (FCA), which is operationally independent

from government.”

https://cointelegraph.com/news/uk-govt-fca-will-make-final-decision-on-banning-crypto-derivatives

3. China’s President Xi Urges Accelerated Blockchain Technology Adoption

China’s President Xi Jinping has called for the country to accelerate its

adoption of blockchain technologies as a core for innovation. Xi made

the comments at a Politburo Committee session on blockchain technology

trends on Oct. 24.Xi stressed that the implementation of integrated

blockchain technologies is key in promoting technological innovation and

transforming industries. He told the committee:“We must take blockchain

as an important breakthrough for independent innovation of core

technologies, clarify the main directions, increase investment, focus on a

number of key technologies, and accelerate the development of blockchain

and industrial innovation.”

https://cointelegraph.com/news/breaking-chinas-xi-jinping-urges-accelerated-blockchain-technology-adoption

4. Minister Says India, Like Other Nations, Extremely Cautions on Libra

Finance Minister Nirmala Sitharaman has said that India — like many others, in his view — is showing a high degree of caution in regard to Facebook’s Libra.During last week’s 2019 Annual Meetings of the International Monetary Fund and the World Bank in Washington, D.C. — which included a discussion of the Libra project — Sitharaman told reporters from the New Indian Express that:“On our side, the Reserve Bank Governor spoke about it during our turn to intervene. I got the sense that many countries were cautioning on rushing into this […]. Countries will have to show extreme caution much before anything is said or moved on this.”

https://cointelegraph.com/news/minister-says-india-like-other-nations-extremely-cautious-on-libra

3.3 Technological Breakthrough

1. Bitcoin Hash Rate Record Highs Show Miners Are Long-Term Bullish

Bitcoin (BTC) continues to set new records for its network hash rate this month, a sign that miners have shaken off weak price performance.Data from monitoring resource Blockchain confirmed hash rate hit 114 quintillion hashes per second on Oct. 23. his is the largest reading ever and echoed by others such as BitInfoCharts, which recorded an all-time high of just over 110 quintillion at the same time. Coin Dance numbers put the all-time high of 134 quintillion occurring on Oct. 10. Hash rate refers to the overall computing power involved in validating transactions on the Bitcoin blockchain. More power suggests greater network security, as well as interest in the profitability potential of Bitcoin mining.

https://cointelegraph.com/news/qtums-first-ever-hard-fork-qtum-20-is-now-active

4.Weekly Investment Activities

3 investments activities took place in the blockchain industry this week, PhonePe got strategic investment of 40.5 rupee, Coinplug got strategic investment of 6.4 million investment, Mars Finance got strategic investment form Linekong.

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.

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.

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