Huobi Research Weekly (Vol.117) 2020.6.1–2020.6.7)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.33%, with 81 projects increased in value to varying degrees. According to coinmarketcap, as of June 7, 2020, the total market cap of cryptocurrencies was 277.3 billion U.S. dollars, increased by 4.33%, and the total market cap of the top 100 cryptocurrencies was 274.4 billion U.S. dollars, increased by 3.88% from last week. 4 cryptocurrency projects entered the top 100 this week, namely DIVI、HIVE、LRC and WAXP. As of June 7, 2020, Bitcoin was traded at 9758.85USD, 3.19% higher than its price last week. Ethereum was traded at 245.17USD, 6.24% higher than its price last week.

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

The average bitcoin Hashrate for the entire network reached 109.1 EH/s, increased by 15.33% from the previous week.Average Hashrate for the entire Ethereum network was 185.76TH/s this week, increased by 2.68%. Average difficulty for mining Bitcoin this week was 13.73T, decreased by 9.25% from last week. The average difficulty of mining Ethereum this week was 2331.27TH, increased by 2.39% from that of previous week.

In network activity, the average size of each block was 0.7932KB, decreased 36.54% form last week; there were on average 1453 transactions recorded in each block, decreased by 20.77% from the previous week. The average number of transactions per block in Ethereum this week was 142.8, increased by 2.73%. The average size of each block was 28876.57 bytes, increased by 4.05% compared to last week. As of June 7, 2020, average transaction fees of Bitcoin this week was $1.083, decreased by 52.42% from last week. Average transaction fees of Ethereum this week was $0. 528, incresead by 5.60%.The total number of Bitcoin addresses was 49816588 increased by 231650 (0.47%). Lisk was the most active project on GitHub this week, with 91 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, GameChain got strategic investment from Collinstar Capital、BLOCK ECO FUND etc., Ginkan got 2.6 million dollars in A round investment from MTG Ventures lead.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.33%, with 81 projects increased in value to varying degrees. According to coinmarketcap, as of June 7, 2020, the total market cap of cryptocurrencies was 277.3 billion U.S. dollars, increased by 4.33%, and the total market cap of the top 100 cryptocurrencies was 274.4 billion U.S. dollars, increased by 3.88% from last week, among which, DVI had the largest increased of 110.03%, bringing its market cap ranking from №141 to №85, TNC had the largest decreased of -36.21%, bringing its market cap ranking from №26 to №34. In addition, there were 4 projects that entered TOP100, namely, HIVE (Hive, increased 7.81%, Now №100), WAXP (WAX, increased 78.72%, Now №77), LRC (Loopring, increased 78.72%, Now №83), DIVI (Divi, increased 110.03%, Now №85). As of June 7, 2020, Bitcoin was traded at 9758.85USD, 3.19% higher than its price last week. Ethereum was traded at 245.17USD, 6.24% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 16.43% compared with the same period of last week. In this week, 30 of the top 100 projects increased in 24h trading volume, led by LRC with a weekly increase of 567.92%; there were 69 projects decreased in their 24h trading volume, there were 43 projects that saw over 20% decrease in their 24h trading volume, while 14 projects fell by more than 50%, led by TNC, with a decreased of 87.79%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On June 7, 2020, the overall market cap of the top 10 cryptocurrencies was 243.8 billion USD, increased by 3.57% from last week, accounting for 87.93% of the total market capitalization of cryptocurrencies, decreased by 0.64% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 64.73%, decreased by 0.71% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Platform Project got the largest increase. The average market cap of Coin Project got the largest increase. As of June 7, 2020, the total market cap of coin projects reached 201.4 billion USD, increased by 3.34%. The average market cap of coin projects reached 5.59 billion USD, increased by 6.21%. The total market cap of platform projects reached 38.7 billion USD, increased by 7.38%. The average market cap of platform projects reached 1.43 billion USD, increased by 3.40%. The total market cap of application class projects reached 24.8 billion USD, increased by 2.64%. The average market cap of application class projects reached 0.73 billion USD, increased by 2.64%. The total market cap of asset-backed token projects reached 9.47 billion USD, increased by 4.83%. The average market cap of asset-backed token projects reached 3.15 billion USD, increased by 4.83%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of June 7, 2020, among the top 100 projects, the number of coin class projects decreased 1, application class projects remain the same, platform class projects increased 1 and asset-backed token class remain the same. The largest overall market cap by segment was still coin projects, accounting for 73.39% 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 Ethereum increased by this week. From June 1, 2020- June 7, 2020 ,the average bitcoin Hashrate for the entire network reached 109.1 EH/s, increased by 15.33% from the previous week.

Average Hashrate for the entire Ethereum network was 185.76TH/s this week, increased by 2.68%.

This week, the difficulty of mining Bitcoin decreased but Ethereum increased. As of June 7, 2020, average difficulty for mining Bitcoin this week was 13.73T, decreased by 9.25% from last week. The average difficulty of mining Ethereum this week was 2331.27TH, increased by 2.39% from that of previous week.

The number of blocks in Bitcoin increased by 14.12%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks increased 0.61%. In the past week, Bitcoin mined 1067 blocks, increased by 14.12% from the previous week. Among the top five pools were F2Pool、Poolin、BTC.com、AntPool、58COIN&1THash, these 5 pools mined 213、171、144、108 and 61 blocks respectively, accounting for 19.96%、16.03%、13.50%、10.12% and 5.72% of all Bitcoins mined this week. The Hashrate was 22.23 EH/s、17.84EH/s、15.03EH/s、11.27EH/s and 6.37EH/s, respectively.

In the past week, Ethereu’s entire network mined 48192 blocks, increased 0.61% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Nanopool and Zhizhu.top, each mined 14415、10287、4487、3239 and 2914 blocks respectively, accounting for 29.9116%、21.3459%、9.3107%、6.7210% and 6.0466% of all Ethereum mined this week, respectively.

2.2 Activity Statistics

The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block increased and the average block size of Ethereum increased this week. According to blockchain.info, from June 1, 2020-June 7, 2020, the average size of each block was 0.7932KB, decreased 36.54% form last week; there were on average 1453 transactions recorded in each block, decreased by 20.77% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 142.8, increased by 2.73%. The average size of each block was 28876.57 bytes, increased by 4.05% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 31.32%. Number of unconfirmed transactions in Ethereum increased by 9.15% from the previous week. As of June 7, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 1891, increased by 31.32% from last week. There were 96479.36 unconfirmed transactions in the Ethereum network, increased by 9.15% from last week, with the lowest amount of unconfirmed transactions in the week being 62755 and the highest amount being 106319.

Total transaction fees of Bitcoin decreased but Ethereum increased. As of June 7, 2020, average transaction fees of Bitcoin this week was $1.083, decreased by 52.42% from last week. Average transaction fees of Ethereum this week was $0. 528, incresead by 5.60%.

The average number of distinct miners per day in Ethereum increased by 0.20% from last week. From June 1, 2020- June 7, 2020, the average number of distinct miners per day in Ethereum this week was 50.5, increased by 0.20% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of June 7, 2020, there were 10568 Bitcoin nodes, increased by 0.32% compared to last week, of which 1981 nodes were in the U.S, 1787 nodes were Germany, and 197 nodes were in China(№10), each accounting for 18.75%, 16.91% and 1.86% of the total number of Bitcoin nodes, respectively.

As of June 7, 2020, there were 7497 Ethereum nodes, increased by 0.81% from the previous week. Specifically, there were 2317 nodes in the U.S, 611 nodes in China, and 819 nodes in Germany, each accounting for 30.91%, 8.15%, 10.92% 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 June 7, 2020, the total number of Bitcoin addresses was 49816588 increased by 231650 (0.47%).

LSK was the most active project on GitHub this week. From June 1, 2020 — June 7, 2020, Lisk was the active project repository on GitHub with a total of 91 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 963k, 588k and 167k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1 million , 951.8k, and 508k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Norwegian Salmon Exporter Fights Food Fraud With Blockchain

The Norwegian-based producer of farmed-salmon, Kvarøy Arctic, has become the latest firm to join IBM’s Food Trust — the tech giant’s blockchain-based supply chain solution for the food industry. Kvarøy Arctic is a supplier for numerous restaurants and Whole Foods retailers in the United States and Canada, and will now utilize blockchain technology to provide detailed information on the origin of its produce to restaurants and consumers. Information regarding the origin of salmon farmed by Kvarøy Arctic will be accessible to corporate buyers and consumers through QR codes. Customers will be able to access comprehensive information and images detailing the conditions under which the salmon was produced, including the population and density of the habitats in which the salmon were raised, their age, date of harvest, and information concerning the supply route taken from farm to supermarket.

2. Walmart China Subsidiary Teams Up With VeChain to Trace Food Products

Sam’s Club, a China-based subsidiary of Walmart, has partnered with blockchain-based supply chain management platform VeChain (VET) to trace food products sold by the shopping chain.PricewaterhouseCoopers (PwC) will assist in the Sam’s Club Blockchain Traceability Platform project, which is intended to both ensure food safety and afford greater transparency to consumers in China.Since mid-2019 PwC China and Walmart China have been developing a traceability platform on the VeChain blockchain called the Walmart China Blockchain Traceability Platform. Sam’s Club will utilize a modified version of VeChain’s ToolChain platform alongside software sensors, hardware sensors and Internet-of-Things (IoT) technologies to automatically upload data from across the company’s supply chain onto the blockchain.Customers will then be able to access detailed information on the origin of products in-store by scanning QR codes printed on the packaging for Sam’s Club’s goods.

3. Oil and Gas Blockchain Consortium’s Pilot Test Produces Successful Result

The OOC Oil & Gas Blockchain Consortium has completed a blockchain pilot test to automate payments for oilfield water-handling.The process of oilfield water-handling requires the management of the huge amount of water extracted and injected during the process of oil and gas extraction.A Reuters report claimed that the blockchain solutions implemented during the test cut short the workflow process by nine steps, eventually reducing the completion time from 120 days to just one week. Additionally, the group specified that during the test, the blockchain solution automatically validated 85% of all volume measurements.The OOC Oil & Gas Blockchain Consortium is a 10-company oil and gas group including major firms such as Dutch Shell, Equinor and ConocoPhillips. The blockchain solutions for the pilot test were developed by a Saudi Aramco-funded Blockchain-as-a-Service company, the Data Gumbo Corporation.

3.2 International Policies

1. Swiss Regulators Green Light Crypto Transactions for Local Bank

The Swiss Financial Market Supervisory Authority, or FINMA, has authorized InCore bank to carry out digital assets transactions, allowing customers worldwide to access and transact within the bank.The official announcement represents an important step in creating a blockchain-friendly environment across the EU banking sector. InCore bank becomes the first Swiss business-to-business bank approved to operate within the crypto sphere.The firm now allows the institutional clients to trade, hold, and transfer digital assets. FINMA has also allowed the bank to develop its tokenization capabilities. InCore Bank’s new digital assets’ transaction client is Maerki Bauman & CO. Local media considers InCore Bank to be one of the most well-qualified banks in the sector. Company executives said the bank plans to expand its blockchain strategy in the coming months. It also plans to include brokerage, custody, and transfer services to security tokens.

2. Kyrgyzstan Poised to Legitimize Crypto Mining

Lawmakers in the Kyrgyz Republic are considering a bill to tax and regulate cryptocurrency mining activities. The bill, On Amending the Tax Code of the Kyrgyz Republic, seeks to increase government revenue by establishing taxation obligations for miners, in addition to establishing clear definitions for the terms “virtual assets” and “mining” within the context of cryptocurrencies.If passed, the new taxation regime would comprise the first major step taken towards cryptocurrency liberalization on the part of the Kyrgyz Republic, with the country explicitly prohibiting crypto assets as a means of payment in July 2014. The proposed law would tax miners at a flat rate of 15% of profits generated through the sale of mined crypto assets. The bill was first proposed in August 2019, and it is estimated that it could capture an additional $4.2 million toward the Kyrgyz Republic’s roughly $1 billion annual budget.The parliament also discussed the introduction of a designated electricity rate for miners, following the Supreme Council’s suggestion of $0.05 per kilowatt-hour (KW/h) in December of last year — a 70% premium compared to the country’s average price of roughly $0.030 per KW/h.

3. Canadian University Adds Two Blockchain Programs to Meet Job Demands

Canada’s York University School of Continuing Studies today announced two new university-level continuing blockchain programs — the part-time Certificate in Blockchain Development and the full-time Post-Graduate Certificate in Back-End and Blockchain Development.The university said their new courses aim to meet the rising demand for blockchain developer roles in Canada, especially in the Greater Toronto Area, where it has risen by 374% in the last two years. The two courses, which are scheduled to start this September, will help students upskill and build a portfolio in the blockchain field so they can secure roles as blockchain professionals.The university will be offering the part-time blockchain development course completely online. The coronavirus pandemic has shown a multitude of flaws in existing information-sharing systems and supply chains. An advisory council member of the post-graduate program said that technologies like blockchain are crucial in building a more transparent and high-performance data governance system that can mitigate crises like the current one.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, GameChain got strategic investment from Collinstar Capital、BLOCK ECO FUND etc., Ginkan got 2.6 million dollars in A round investment from MTG Ventures lead.

Huobi Research

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