Huobi Research Weekly (Vol.105) 2020.3.9–2020.3.15)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 33.85%, with 94 projects decreased in value to varying degrees. According to coinmarketcap, as of March 15, 2020, the total market cap of cryptocurrencies was 152.8 billion U.S. dollars, decreased by 33.85%, and the total market cap of the top 100 cryptocurrencies was 151.5 billion U.S. dollars,decreased by 33.29% from last week. 4 cryptocurrency projects entered the top 100 this week, namely GAP、EON、BDX and QC. As of March 15, 2020, Bitcoin was traded at 5392.31USD, 33.45% lower than its price last week. Ethereum was traded at 125.21USD, 37.55% lower than its price last week.

The hashrate of Bitcoin decreased and Ethereum decreased by this week. This week, the difficulty of mining Bitcoin increased but 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 increased and the average block size of Ethereum increased this week.The average transaction fees of Bitcoin increased but Ethereum decreased. ZSC was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 113.7 EH/s, decreased by 6.27% from the previous week. Average Hashrate for the entire Ethereum network was 179.95TH/s this week, decreased by 0.31%. Average difficulty for mining Bitcoin this week was 16.18T, increased by 4.52% from last week. The average difficulty of mining Ethereum this week was 2265.88TH, decreased by 0.07% from that of previous week.

In network activity, the average size of each block was 1.14MB, increased 8.57% form last week; there were on average 2240 transactions recorded in each block, increased by 4.67% from the previous week. The average number of transactions per block in Ethereum this week was 115.0, increased by 12.41%. The average size of each block was 25723.28 bytes, increased by 16.32% compared to last week. As of March 15, 2020, average transaction fees of Bitcoin this week was $1.021, increased by 90.49% from last week. Average transaction fees of Ethereum this week was $0.111, decresead by 21.83%. The total number of Bitcoin addresses was 46594448 increased by 179348 (0.39%). ZSC was the most active project on GitHub this week, with 80 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, Argent got 12 million dollars investment in A round, Impulse got seed round investment.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 33.85%, with 94 projects decreased in value to varying degrees. According to coinmarketcap, as of March 15, 2020, the total market cap of cryptocurrencies was 152.8 billion U.S. dollars, decreased by 33.85%, and the total market cap of the top 100 cryptocurrencies was 151.5 billion U.S. dollars,decreased by 33.29% from last week, among which, TAGZ5 had the largest increased of 92.59%, bringing its market cap ranking from №31 to №19, MKR had the largest decreased of -53.27%, bringing its market cap ranking from №26 to №31. In addition, there were 4 projects that entered TOP100, namely, BDX (Beldex, decreased 9.85%, Now №87), EON (Dimension Chain, decreased 5.91%, Now №73), GAP (GAPS, decreased 3.78%, Now №74), QC (QCash, decreased 3.22%, Now №94). As of March 15, 2020, Bitcoin was traded at 5392.31USD, 33.45% lower than its price last week. Ethereum was traded at 125.21USD, 37.55% lower than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 22.60% compared with the same period of last week. In this week, 14 of the top 100 projects increased in 24h trading volume, led by INO with a weekly increase of 1395.23%; there were 84 projects decreased in their 24h trading volume, there were 66 projects that saw over 20% decrease in their 24h trading volume, while 21 projects fell by more than 50%, led by ICX, with a decreased of 79.87%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On March 15, 2020, the overall market cap of the top 10 cryptocurrencies was 136.8 billion USD, decreased by 32.66% from last week, accounting for 89.49% of the total market capitalization of cryptocurrencies, increased by 1.58% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 64.44%, increased by 0.39% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Platform Project got the largest decrease. The average market cap of Platform Project got the largest decrease. As of March 15, 2020, the total market cap of coin projects reached 114.7 billion USD, decreased by 32.33%. The average market cap of coin projects reached 3.27 billion USD, decreased by 32.33%. The total market cap of platform projects reached 20.3 billion USD, decreased by 36.63%. The average market cap of platform projects reached 0.67 billion USD, decreased by 36.63%. The total market cap of application class projects reached 14.7 billion USD, decreased by 29.20%. The average market cap of application class projects reached 0.44 billion USD, decreased by 29.20%. The total market cap of asset-backed token projects reached 4.78 billion USD, decreased by 0.88%. The average market cap of asset-backed token projects reached 2.39 billion USD, decreased by 0.88%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of March 15, 2020, among the top 100 projects, the number of coin class projects remain the same, application class projects remain the same, platform class projects remain the same and asset-backed token class remain the same. The largest overall market cap by segment was still coin projects, accounting for 74.21% 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 decreased and Ethereum decreased by this week. From March 9, 2020 — March 15, 2020 ,the average bitcoin Hashrate for the entire network reached 113.7 EH/s, decreased by 6.27% from the previous week.

Average Hashrate for the entire Ethereum network was 179.95TH/s this week, decreased by 0.31%.

This week, the difficulty of mining Bitcoin increased but Ethereum decreased. As of March 15, 2020, average difficulty for mining Bitcoin this week was 16.18T, increased by 4.52% from last week. The average difficulty of mining Ethereum this week was 2265.88TH, decreased by 0.07% from that of previous week.

The number of blocks in Bitcoin decreased by 14.17%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks decreased 1.17%. In the past week, Bitcoin mined 957 blocks, decreased 14.17% from the previous week. Among the top five pools were Poolin、F2Pool、AntPool、 BTC.com、ViaBTC, these 5 pools mined 170、166、102、101 and 65 blocks respectively, accounting for 17.76% 、17.35%、10.66%、10.55% and 6.79% of all Bitcoins mined this week. The Hashrate was 19.71 EH/s、19.24EH/s、11.83EH/s、11.71EH/s and 7.54EH/s, respectively.

In the past week, Ethereu’s entire network mined 47438 blocks, decreased 1.17% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Nanopool and Zhizhu.top, each mined 15311、10876、4976、3820 and 1705 blocks respectively, accounting for 32.2758%、22.9268%、10.4895%、8.0526% and 3.5942% 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 increased and the average block size of Ethereum increased this week. According to blockchain.info, from March,9,2020-March,15,2020, the average size of each block was 1.14MB, increased 8.57% form last week; there were on average 2240 transactions recorded in each block, increased by 4.67% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 115.0, increased by 12.41%. The average size of each block was 25723.28 bytes, increased by 16.32% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 146.32%. Number of unconfirmed transactions in Ethereum increased by 14.09% from the previous week. As of March 15, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 14442, increased by 146.32% from last week. There were 72226.37 unconfirmed transactions in the Ethereum network, increased by 14.09% from last week, with the lowest amount of unconfirmed transactions in the week being 41908 and the highest amount being 123931.

Total transaction fees of Bitcoin increased but Ethereum decreased. As of March 15, 2020, average transaction fees of Bitcoin this week was $1.021, increased by 90.49% from last week. Average transaction fees of Ethereum this week was $0.111, decresead by 21.83%.

The average number of distinct miners per day in Ethereum increased by 4.32% from last week. From March 9, 2020-March 15, 2020,the average number of distinct miners per day in Ethereum this week was 55.5, increased by 4.32% from last week.

The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum decreased this week. As of March 15, 2020, there were 10254 Bitcoin nodes, decreased by 0.71% compared to last week, of which 2069 nodes were in the U.S, 1817 nodes were Germany, and 249 nodes were in China(№9), each accounting for 20.18%, 17.72% and 2.43% of the total number of Bitcoin nodes, respectively.

As of March 15, 2020, there were 6974 Ethereum nodes, decreased by 0.49% from the previous week. Specifically, there were 2043 nodes in the U.S, 444 nodes in China, and 781 nodes in Germany, each accounting for 29.27%, 6.36%, 11.19% 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 March 8, 2020, the total number of Bitcoin addresses was 46594448 increased by 179348 (0.39%).

ZSC was the most active project on GitHub this week. From March 9, 2020 — March 15, 2020, ZSC was the active project repository on GitHub with a total of 80 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 962k, 536k and 159k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1 million , 946k, and 501k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. IADB: Blockchain Technology Program Aims to Fight Violence Against Women and Children

The Inter-American Development Bank has launched a competition that invites projects to propose blockchain-based solutions for preventing violence against women, children and the elderly. Companies, entrepreneurs, startups and NGOs are all invited to submit their ideas.The challenge, called “Blockchangel,” was proposed in a joint alliance between the LACChain group’s innovation laboratory and the Everis Foundation. Incorporating a blockchain is a requirement of the competition, and proposals must be applicable anywhere in Latin America and the Caribbean. The winners will have the chance to present their project for co-financing.

2. Two Italian High Schools to Issue Digital Diplomas With Blockchain

Two Italian high schools will begin issuing unchangeable and easily shareable digital diplomas with the Ethereum’s blockchain public technology.The measure, as reported by Cointelegraph Italia on March 12, seeks to make the entire process of issuance and traceability transparent, but above all, to solve a long-standing problem in the country: fake diplomas.The mentioned schools are located in Rome and Crotone. The licei internazionali di Villa Flaminia in Rome will rely on a blockchain-based system developed by the EY company, while the l’Istituto d’Istruzione Superiore “M. Ciliberto — A. Lucifero” from Crotone has partnered with Blockchain Italia . Such technology will also allow educational institutions to notarize all the information regarding the student, the courses they will take and thus give them personalized follow-up, without running the risk of the registry being altered.

3. South Africa Looks to Blockchain to Reduce Unemployment

The South African Presidential Commision on the Fourth Industrial Revolution believes that blockchain technology and Artificial Intelligence could help reduce unemployment in the country.Commissioner Mpho Dagada told the Blockchain Africa Conference in Johannesburg this week that blockchain could bring important economic benefits.“We face two significant challenges in the country: reducing unemployment and increasing our Gross Domestic Product (GDP),” he said. “[The] Fourth Industrial Revolution policy creation can create economic growth in the country.” Dagada said that South Africa’s mining sector in particular could benefit from forward thinking solutions utilizing blockchain technology, in partnership with AI:“The South African economy has natural resources, a mature financial services sector and is an economic and political powerhouse. If the strength of Africa is in minerals, the world is looking at better ways of tracking data in that space.”

3.2 International Policies

1. French Regulators Propose a European Regulatory Sandbox for Security Tokens

European businesses may soon have a new jurisdiction in which to experiment with security tokens while regulators evaluate the pros and cons. France’s markets regulator, the Autorité des Marchés Financiers — or AMF — is considering a regulatory sandbox meant to study the impact of security tokens in the European Union.The AMF announced on March 6 that it proposed a European “Digital Lab” regulatory sandbox allowing local regulators to waive requirements related to security settlements. The regulator hopes that such measures would result in the development of security token market infrastructure that could lead to a secure legal environment.Exemptions would be granted on the condition that the beneficiary complies with key principles of financial regulations and is subject to increased supervision. The project is meant to investigate Security Token Offerings (STOs) and the broader concept of blockchain-based financial instruments.

2. US Congressman Introduces Crypto-Currency Act of 2020

A United States congressman is the latest working to clarify and determine which U.S. regulator is responsible for which digital assets. On March 9, Representative Paul Gosar (R-AZ) introduced the “Crypto-Currency Act of 2020,” a bill that looks to choreograph a wide range of digital assets to answer to the appropriate regulator. As Will Stechschulte, Gosar’s legislative assistant, explained: “the bill looks to provide not only clarity, but legitimacy to crypto assets in the United States.”Gosar’s proposal divides digital assets into three categories: crypto-commodity, crypto-currency and crypto-security. Respectively, the three categories would be governed by the Commodity Futures Trading Commission (CFTC), the Secretary of the Treasury via the Financial Crimes Enforcement Network (FinCEN), and the Securities and Exchange Commission (SEC).

3. Japan’s Financial Regulator Launches Global Blockchain Governance Initiative

Japan’s financial regulator announced the launch of its global Blockchain Governance Initiative Network (BGIN) on March 10. The BGIN intends to foster the “sustainable development of the blockchain community.”The Financial Services Agency Japan (JFSA) announced the new initiative during the “BG2C — Special Online Broadcasting Panel Discussion,” which the JFSA hosted in partnership with Nikkei Inc. The BGIN will encourage sustainable development of the distributed ledger technology (DLT) sector by establishing “an open and neutral sphere for all blockchain stakeholders to deepen common understanding” between DLT stakeholders.The initiative also hopes to develop a “common language among stakeholders with diverse perspectives” and build a network of open-source information sharing. The JFSA will participate in the BGIN as a stakeholder.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Argent got 12 million dollars investment in A round, Impulse got seed round investment.

Huobi Research

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