Huobi Research Weekly (Vol.113) 2020.5.4–2020.5.10)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 3.63%, with 71 projects decreased in value to varying degrees. According to coinmarketcap, as of May 10, 2020, the total market cap of cryptocurrencies was 239.9 billion U.S. dollars, decreased by 3.63%, and the total market cap of the top 100 cryptocurrencies was 238.7 billion U.S. dollars, decreased by 3.55% from last week. 4 cryptocurrency projects entered the top 100 this week, namely REN、LEND、NMR and VLX. As of May 10, 2020, Bitcoin was traded at 8756.43USD, 1.51% lower than its price last week. Ethereum was traded at 188.6USD, 10.51% lower than its price last week.

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

The average bitcoin Hashrate for the entire network reached 108.9 EH/s, decreased by 7.24% from the previous week. Average Hashrate for the entire Ethereum network was 182.77TH/s this week, increased by 1.73%. Average difficulty for mining Bitcoin this week was 16.10T, increased by 0.88% from last week. The average difficulty of mining Ethereum this week was 2298.46TH, increased by 2.18% from that of previous week.

In network activity, The average size of each block was 1.29MB, decreased 3.73% form last week; there were on average 2297 transactions recorded in each block, increased by 18.52% from the previous week. The average number of transactions per block in Ethereum this week was 129.3, decreased by 0.46%. The average size of each block was 27209 bytes, increased by 3.95% compared to last week. As of May 10, 2020, average transaction fees of Bitcoin this week was $2.711, increased by 28.61% from last week. Average transaction fees of Ethereum this week was $ 0.224, incresead by 55.56%. The total number of Bitcoin addresses was 48643060 increased by 369372 (0.76%). 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, General Protocols got 1 million dollars in seed investment from Marc De Mesel,Molecular, GeoDB got 1.37 million pounds in strategic investment from Consensus Lab.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 3.63%, with 71 projects decreased in value to varying degrees. According to coinmarketcap, as of May 10, 2020, the total market cap of cryptocurrencies was 239.9 billion U.S. dollars, decreased by 3.63%, and the total market cap of the top 100 cryptocurrencies was 238.7 billion U.S. dollars, decreased by 3.55% from last week, among which, ZRX had the largest increased of 92.08%, bringing its market cap ranking from №54 to №38, MIN had the largest decreased of -34.04%, bringing its market cap ranking from №19 to №25. In addition, there were 4 projects that entered TOP100, namely, REN (Ren, increased 12.53%, Now №96), VLX (Velas, increased 25.24%, Now №95), NMR (Numeraire, increased 45.46%, Now №83), LEND (Aave, increased 60.09%, Now №78). As of May 10, 2020, Bitcoin was traded at 8756.43USD, 1.51% lower than its price last week. Ethereum was traded at 188.6USD, 10.51% lower than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 31.47% compared with the same period of last week. In this week, 65 of the top 100 projects increased in 24h trading volume, led by ZRX with a weekly increase of 842.59%; there were 34 projects decreased in their 24h trading volume, there were 17 projects that saw over 20% decrease in their 24h trading volume, while 5 projects fell by more than 50%, led by MWC, with a decreased of 81.75%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On May 10,2020, the overall market cap of the top 10 cryptocurrencies was 213.8 billion USD, decreased by 3.53% from last week, accounting for 89.12% of the total market capitalization of cryptocurrencies, increased by 0.10% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 67.06%, increased by 1.44% 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 Asset-backed Project got the largest increase. As of May 10, 2020, the total market cap of coin projects reached 180.0 billion USD, decreased by 2.36%. The average market cap of coin projects reached 5.14 billion USD, increased by 0.42%. The total market cap of platform projects reached 29.7 billion USD, decreased by 8.99%. The average market cap of platform projects reached 1.14 billion USD, decreased by 12.49%. The total market cap of application class projects reached 22.2 billion USD, decreased by 5.83%. The average market cap of application class projects reached 0.61 billion USD, decreased by 8.44%. The total market cap of asset-backed token projects reached 6.63 billion USD, decreased by 1.79%. The average market cap of asset-backed token projects reached 2.21 billion USD, increased by 30.95%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of May 10, 2020, among the top 100 projects, the number of coin class projects decreased 1, application class projects increased 1, platform class projects increased 1 and asset-backed token class decreased 1. The largest overall market cap by segment was still coin projects, accounting for 75.44% 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 but Ethereum increased by this week. From May 4, 2020 — May 10, 2020 ,the average bitcoin Hashrate for the entire network reached 108.9 EH/s, decreased by 7.24% from the previous week.

Average Hashrate for the entire Ethereum network was 182.77TH/s this week, increased by 1.73%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of May 10, 2020, average difficulty for mining Bitcoin this week was 16.10T, increased by 0.88% from last week. The average difficulty of mining Ethereum this week was 2298.46TH, increased by 2.18% from that of previous week.

The number of blocks in Bitcoin increased by 6.88%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks decreased 3.69%. In the past week, Bitcoin mined 1057 blocks, increased 6.88% from the previous week. Among the top five pools were F2Pool、Poolin、AntPool、BTC.com、ViaBTC, these 5 pools mined 191、166、151、120 and 76 blocks respectively, accounting for 18.07%、15,70%、14.29%、11.35% and 7.19% of all Bitcoins mined this week. The Hashrate was 21.80 EH/s、18.95EH/s、17.23EH/s、13.70EH/s and 8.67EH/s, respectively.

In the past week, Ethereu’s entire network mined 46747 blocks, decreased 3.69% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Nanopool and Zhizhu.top, each mined 15364、10051、4407、3170 and 2679 blocks respectively, accounting for 32.8663%、21.5008%、9.4273%、6.7812% and 5.6046% 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 decreased. The average number of transactions per block decreased and the average block size of Ethereum increased this week. According to blockchain.info, from May 4, 2020-May 10, 2020, the average size of each block was 1.29MB, decreased 3.73% form last week; there were on average 2297 transactions recorded in each block, increased by 18.52% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 129.3, decreased by 0.46%. The average size of each block was 27209 bytes, increased by 3.95% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 145.24%. Number of unconfirmed transactions in Ethereum decreased by 0.32% from the previous week. As of May 10, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 9162, increased by 145.24% from last week. There were 83754.89 unconfirmed transactions in the Ethereum network, decreased by 0.32% from last week, with the lowest amount of unconfirmed transactions in the week being 53939 and the highest amount being 107173.

Total transaction fees of Bitcoin increased and Ethereum increased. As of May 10, 2020, average transaction fees of Bitcoin this week was $2.711, increased by 28.61% from last week. Average transaction fees of Ethereum this week was $ 0.224, incresead by 55.56%.

The average number of distinct miners per day in Ethereum decreased by 5.79% from last week. From May 4, 2020- May 10, 2020, the average number of distinct miners per day in Ethereum this week was 53.7, decreased by 5.79% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of May 10, 2020, there were 9660 Bitcoin nodes, increased by 1.64% compared to last week, of which 1943 nodes were in the U.S, 1761 nodes were Germany, and 206 nodes were in China(№10), each accounting for 20.11%, 18.23% and 2.13% of the total number of Bitcoin nodes, respectively.

As of May 10, 2020, there were 7281 Ethereum nodes, increased by 1.31% from the previous week. Specifically, there were 2262 nodes in the U.S, 448 nodes in China, and 808 nodes in Germany, each accounting for 31.07%, 6.15%, 11.10% 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 May 3, 2020, the total number of Bitcoin addresses was 48643060 increased by 369372 (0.76%).

ZSC was the most active project on GitHub this week. From May 4, 2020 — May 10, 2020, zeus-shield 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 967k, 568k and 163k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1 million , 952k, and 508k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Agtech Firm Tracks Beef Exports From Australia to China Using Blockchain

Australian livestock traceability platform, Aglive Group Limited, announced the completion of a pilot tracing beef exports from Australia to China on May 4. Australian livestock tracking platform Frozen beef products were tracked across the supply chain as the meat was transported by land freight interstate to Queensland, and then shipped to Shanghai — ensuring that the products were stored under safe conditions throughout transit. The products were then distributed to grocery stores in Shanghai. Aglive executive director Paul Ryan emphasized that each individual product, carton and air container used across the supply chain is identified and tracked, with Internet-of-Things devices included alongside the products to record temperature and location data.All data is recorded to a private version of the Ethereum blockchain that can execute smart contracts on both Hyperledger Fabric and Ethereum.

2. Major Polish Insurance Company Taps Blockchain for Its Paperwork

Polish insurance company Link4 teams up with blockchain startup Coinfirm to use a DLT-powered tool for document management. Called Trudatum, the blockchain-enabled tool developed by Coinfirm reportedly allows the firm to transfer and store electronic documents and ensure their immutability. For Link4’s customers specifically, it means that their insurance papers could be accessed and verified online, thereby reducing the overall amount of paperwork for the company. Blockchain is another technological step for the company commented Agnieszka Wrońska, president of the Link4 Board:“For a long time, we’ve been focusing on modern and secure solutions, and this undoubtedly fits with blockchain, which guarantees the permanent saving of documents without the possibility of editing them. It is a benefit for our clients who will always find documents such as the product card or general insurance conditions in the same place, in unchanged form.”

3. Nasdaq Partners With R3 to Help Build Institutional-Grade Digital Assets

The world’s second-largest stock exchange and capital markets technology company, Nasdaq, has entered a partnership with enterprise blockchain solutions platform, R3. R3 announced the partnership on April 29, 2020, stating that Nasdaq will use its blockchain software, Corda, among other services. Their intention is to help financial institutions easily build and deploy institutional-grade digital assets. Nasdaq, along with R3, plans to bridge the gap between financial institutes and blockchain-based digital asset solutions. They will help organizations issue tokens and build digital asset marketplaces. They will also support these organizations through various processes such as issuance, trading, settlement, and custody.

3.2 International Policies

1. Ukraine Considers Using Nuclear Plants for Cryptocurrency Mining

Cryptocurrency mining is a contemporary and efficient way to use excess energy, Ukraine’s Ministry of Energy argued in a May 6 statement published on Facebook. According to the post, local nuclear plants have generated the surplus due to the COVID-19 lockdown. The bureau is now looking to apply progressive solutions to avoid wasting energy as part of the government’s course toward digitalization championed by president Volodymyr Zelensky. Crypto mining, in turn, could prove to be one of the efficient solutions, the post continues:“There is a way to transfer this ‘liability’ into an ‘asset’. One of the modern approaches for using excess electricity is to devote it to cryptocurrency mining. That would not only allow to maintain the guaranteed load on the nuclear power plants, but also ensure that companies can attract extra funds. Therefore, it would open the way to a fundamentally new economy, new approaches, a new market model.”

2. European Central Bank Calls for Proactive Stablecoin Regulation

In a recent in-depth report on global stablecoins, the European Central Bank, or ECB, pushed for clear regulatory parameters for stablecoins, citing risks as well as gaps in current regulations. “In order to reap the potential benefits of global stablecoins, a robust regulatory framework needs to be put in place in order to address these risks before such arrangements are allowed to operate,” the ECB wrote in its May 5 report. The ECB’s report noted several benefits around international stablecoins, including speed and simplicity — aspects the public deems important. The governing bank, however, did not shy away from detailing the various risks and difficulties possible with such a currency type, including questions on stability, value and possible systemic failure. One specific risk sees users not able to cash in on their exact “stable” value if the asset loses its value peg, or if its backing deviates from an expected level.

3. Spanish Multinational Bank BBVA to Explore Zero-Knowledge Proofs

The Banco Bilbao Vizcaya Argentaria (BBVA), a multinational bank headquartered in Spain, has announced a partnership with Madrid-based research center IMDEA Software Institution to explore zero-knowledge proofs (ZKPs) alongside other “advanced cryptographic techniques.”Both entities will freely utilize each other’s technologies and research to drive innovation as quickly as possible. The partnership will see the institutions research a number of applications for cryptography in the context of the financial sector, including ways to ensure that data shared within a network is not vulnerable to exposure to third parties.The research will also look at “the development of viable prototypes that can be incorporated in the digital products and services offered to BBVA customers.” The institutions describe technologies like ZKPs as “key to the creation of data-based digital solutions that protect the privacy and security of users’ data.”The project’s first stage of research will focus on the current barriers to greater adoption of ZKPs, including the challenges of integrating zero-knowledge proofs into existing communications systems and the lack of common standards for the use of cryptographic protocols.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, General Protocols got 1 million dollars in seed investment from Marc De Mesel,Molecular, GeoDB got 1.37 million pounds in strategic investment from Consensus Lab.

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.

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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.

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Blockchain industry top think tank, affiliated to Huobi Group.

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