Huobi Research Weekly (Vol.118) 2020.6.8–2020.6.14)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 4.09%, with 66 projects decreased in value to varying degrees. According to coinmarketcap, as of June 14, 2020, the total market cap of cryptocurrencies was 266.0 billion U.S. dollars, decreased by 4.09%, and the total market cap of the top 100 cryptocurrencies was 264.4 billion U.S. dollars, decreased by 3.64% from last week. 4 cryptocurrency projects entered the top 100 this week, namely IOST、LUNA、ERC20 and ZEN. As of June 14, 2020, Bitcoin was traded at 9386.79USD, 3.77% lower than its price last week. Ethereum was traded at 234.11USD, 4.43% lower than its price last week.

The hashrate of Bitcoin increased but Ethereum decreased by this week. This week, the difficulty of mining Bitcoin not changed 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 decreased and the average block size of Ethereum increased this week.The average transaction fees of Bitcoin decreased and Ethereum decreased. ZSC was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 116.0 EH/s, increased by 6.32% from the previous week.Average Hashrate for the entire Ethereum network was 183.21TH/s this week, decreased by 1.373%. Average difficulty for mining Bitcoin this week was 13.73T, as same as last week. The average difficulty of mining Ethereum this week was 2301.59TH, decreased by 1.27% from that of previous week.

In network activity, the average size of each block was 1.07MB, increased 34.90% form last week; there were on average 1773 transactions recorded in each block, increased by 22.02% from the previous week. The average number of transactions per block in Ethereum this week was 142.1, decreased by 0.49%. The average size of each block was 28885.14 bytes, increased by 0.03% compared to last week. As of June 14, 2020, average transaction fees of Bitcoin this week was $0.711, decreased by 34.35% from last week. Average transaction fees of Ethereum this week was $0.454, decresead by 14.02%. The total number of Bitcoin addresses was 50058282 increased by 241694 (0.49%). Zeusshield was the most active project on GitHub this week, with 89 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, Forever Tea Chain got strategic investment from GeekBeans, VPN Tube got strategic investment from Filenet.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 4.09%, with 66 projects decreased in value to varying degrees. According to coinmarketcap, as of June 14, 2020, the total market cap of cryptocurrencies was 266.0 billion U.S. dollars, decreased by 4.09%, and the total market cap of the top 100 cryptocurrencies was 264.4 billion U.S. dollars, decreased by 3.64% from last week, among which, KNC had the largest increased of 58.14%, bringing its market cap ranking from №65 to №46, TNC had the largest decreased of -71.87%, bringing its market cap ranking from №34 to №79. In addition, there were 4 projects that entered TOP100, namely, ZEN (Horizen, increased 26.78%, Now №100), LUNA (Terra, increased 31.38%, Now №91), IOST (IOST, increased 36.38%, Now №90), ERC20 (ERC20, increased 50.54%, Now №95). As of June 14, 2020, Bitcoin was traded at 9386.79USD, 3.77% lower than its price last week. Ethereum was traded at 234.11USD, 4.43% lower than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 25.19% compared with the same period of last week. In this week, 36 of the top 100 projects increased in 24h trading volume, led by TNC with a weekly increase of 265.68%; there were 61 projects decreased in their 24h trading volume, there were 35 projects that saw over 20% decrease in their 24h trading volume, while 8 projects fell by more than 50%, led by STEEM, with a decreased of 77.86%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On June 14, 2020, the overall market cap of the top 10 cryptocurrencies was 234.0 billion USD, decreased by 4.02% from last week, accounting for 87.99% of the total market capitalization of cryptocurrencies, increased by 0.07% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 64.94%, increased by 0.21% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Asset-backed Project got the largest increase. The average market cap of Asset-backed Project got the largest increase. As of June 14, 2020, the total market cap of coin projects reached 195.0 billion USD, decreased by 3.18%. The average market cap of coin projects reached 5.41 billion USD, decreased by 3.18%. The total market cap of platform projects reached 36.5 billion USD, decreased by 5.48%. The average market cap of platform projects reached 1.35 billion USD, decreased by 5.48%. The total market cap of application class projects reached 23.3 billion USD, decreased by 6.01%. The average market cap of application class projects reached 0.68 billion USD, decreased by 6.01%. The total market cap of asset-backed token projects reached 9.49 billion USD, increased by 0.22%. The average market cap of asset-backed token projects reached 3.16 billion USD, increased by 0.22%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of June 14, 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 73.74% 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 but Ethereum decreased by this week. From June 8, 2020- June 14, 2020 ,the average bitcoin Hashrate for the entire network reached 116.0 EH/s, increased by 6.32% from the previous week.

Average Hashrate for the entire Ethereum network was 183.21TH/s this week, decreased by 1.373%.

This week, the difficulty of mining Bitcoin not changed but Ethereum decreased. As of June 14, 2020, average difficulty for mining Bitcoin this week was 13.73T, as same as last week. The average difficulty of mining Ethereum this week was 2301.59TH, decreased by 1.27% from that of previous week.

The number of blocks in Bitcoin increased by 6.75%. Top 5 rankings not changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks decreased 0.11%. In the past week, Bitcoin mined 1139 blocks, increased by 6.75% from the previous week. Among the top five pools were F2Pool、Poolin、BTC.com、AntPool、58COIN&1THash, these 5 pools mined 208、165、157、122 and 97 blocks respectively, accounting for 18.26%、14.49%、13.78%、10.71% and 8.52% of all Bitcoins mined this week. The Hashrate was 22.30 EH/s、16.10EH/s、15.32EH/s、11.90EH/s and 9.46EH/s, respectively.

In the past week, Ethereum’s entire network mined 48139 blocks, decreased 0.11% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Nanopool and Zhizhu.top, each mined 14562、10228、4407、3073 and 2949 blocks respectively, accounting for 30.2499%、21.2468%、9.1547%、6.3836% and 6.1260% 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 decreased but the average block size of Ethereum increased this week. According to blockchain.info, from June 8, 2020-June 14, 2020, the average size of each block was 1.07MB, increased 34.90% form last week; there were on average 1773 transactions recorded in each block, increased by 22.02% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 142.1, decreased by 0.49%. The average size of each block was 28885.14 bytes, increased by 0.03% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 19.41%. Number of unconfirmed transactions in Ethereum increased by 6.44% from the previous week. As of June 14, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 2258, increased by 19.41% from last week. There were 102691.9 unconfirmed transactions in the Ethereum network, increased by 6.44% from last week, with the lowest amount of unconfirmed transactions in the week being 31179 and the highest amount being 127203.

Total transaction fees of Bitcoin decreased and Ethereum decreased. As of June 14, 2020, average transaction fees of Bitcoin this week was $0.711, decreased by 34.35% from last week. Average transaction fees of Ethereum this week was $0.454, decresead by 14.02%.

The average number of distinct miners per day in Ethereum increased by 1.39% from last week. From June 8, 2020- June 14, 2020, the average number of distinct miners per day in Ethereum this week was 51.2, increased by 1.39% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum decreased this week. As of June 14, 2020, there were 10618 Bitcoin nodes, increased by 0.47% compared to last week, of which 1986 nodes were in the U.S, 1783 nodes were Germany, and 187 nodes were in China(№10), each accounting for 18.70%, 16.79% and 1.76% of the total number of Bitcoin nodes, respectively.

As of June 14, 2020, there were 6872 Ethereum nodes, decreased by 8.34% from the previous week. Specifically, there were 1973 nodes in the U.S, 726 nodes in China, and 712 nodes in Germany, each accounting for 28.71%, 10.56%, 10.36% 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 14, 2020, the total number of Bitcoin addresses was 50058282 increased by 241694 (0.49%).

ZSC was the most active project on GitHub this week. From June 8, 2020 — June 14, 2020, Zeusshield was the active project repository on GitHub with a total of 89 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 962k, 592k 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. Global Index Fund Manager Successfully Trials Blockchain Securities

Vanguard, the world’s second-largest index fund manager, has announced the successful completion of the first phase of its blockchain pilot trialing the digitization of asset-backed securities (ABS).The pilot has seen Vanguard partner with a large U.S.-based ABS provider, distributed ledger technology provider Symbiont, and financial institutions BNY Mellon and Citi, to model the full life cycle of securities settlement using a distributed ledger technology network.Vanguard and Symbiont envisage later phases of the pilot will integrate smart contracts into the ABS issuance and settlement process, offering “increased information flow, enhance[d] price discovery and secondary market liquidity” and the automated execution of “key corporate actions”. By digitizing and streamlining the ABS issuance process, it will be able to increase the speed and transparency of transactions while reducing costs and minimizing exposure to risk.

2. South Korean Insurance Giant to Use Blockchain Tech for Mobile Messages

Major South Korean insurance firm KB Insurance plans to implement a blockchain-enabled mobile message delivery system for its clients.According to a June 9 report by industry news outlet Ledger Insights, KB will use the system jointly developed with local telecommunication firm KT Corp starting next month.The service will at first deliver payment and termination notices to auto insurance customers, but the firm plans to expand it to all its customers. The purpose is to reduce mailing costs and non-delivery of notifications. The new message delivery solution uses blockchain to send insurance policy changes or pending payment notifications and ensure that the user receives the message. Information sent using the system will be logged with a blockchain certification system of the Korea Internet & Security Agency.The blockchain logging process gives the message delivery system the same legal validity held by registered mail and allows the insurer to prove that the notification reached the customer.Users can receive notifications after they opted-in for the service. Notifications can be received without installing an additional application and follow the user even after they change their address and mobile number. The service will be only available to KT, SK Telecom and LG U+ mobile service customers.

3. South Korean City Opens Public Services to Blockchain-Based ID App

Busan, the second-largest city in South Korea, has launched an identification app that uses a public blockchain to verify citizen information.The app was developed by Coinplug, a Korean startup working within the regulatory sandbox of the Busan blockchain regulation-free zone. The developer used the Metadium blockchain and its Decentralized Identifier technology to power the app.Through this system, user data is stored on their devices, and only a cryptographic proof of the information is submitted to the blockchain. This strikes a balance between personal data privacy and the need to create tamper-proof records. Normally, the latter can only be achieved through centralized servers holding all the data.The app will let citizens access a wide variety of “non-face-to-face” government services, which due to the COVID-19 pandemic became a much higher priority. Current use cases include the ability to use the Busan Citizen ID and other types of government-issued smart cards. The app also features a crypto wallet, which follows Coinplug’s efforts to integrate crypto payments in South Korea’s post offices.

3.2 International Policies

1. Indian Government Again Proposes Blanket Ban on Cryptocurrencies

The Indian Ministry of Finance has proposed to legally ban cryptocurrencies within the subcontinent. With this, the Indian crypto community is met with yet another unexpected turn. Only three months ago, the Supreme Court of India overruled the Reserve Bank of India’s ban on banks providing services to individuals and companies dealing in cryptocurrencies. The new proposal has again inflicted fear in the Indian crypto community. While much enthusiasm was seen in the crypto space in the past three months as new startups sprouted to push crypto adoption across the nation, this proposal could be a hard blow to all businesses and individuals involved in the space.

2. Ghana’s Central Bank Confirms It’s Still Looking to Pilot a Digital Currency

The Bank of Ghana (BoG) remains committed to piloting a central bank digital currency (CBDC), the bank’s first deputy governor has said.Dr. Maxwell Opoku-Afari made the comment during a virtual stakeholder workshop on payment systems and services, according to a report from GhanaWeb on June 8.This spring, the central bank established a Fintech and Innovation Office to foster development in the local industry, and has in recent years adapted its organizational structure to respond to major changes in the payments sector. Notwithstanding these approaches to encouraging electronic cash transactions, Opoku-Afari emphasized that the bank’s specific CBDC pilot plans remain on solid ground. As reported, the BoG has also authorized Ghana Commercial Bank to issue e-money, and first announced its interest in developing a CBDC in fall 2019. BoG governor Ernest Addison revealed at the time that CBDC development would be pursued in a sandbox, with the stated “possibility of issuing an e-cedi in the near future.”

3. South Korea’s NH Bank Forms Blockchain Financial Services Consortium

South Korea’s NH NongHyup Bank has announced a new consortium with a local law firm and a blockchain laboratory to jointly develop digital asset-based financial services.According to the Korea Herald on June 10, the bank signed a memorandum of understanding with law firm Bae, Kim and Lee, and blockchain developer, Hexlant. The consortium intends to research and develop cryptocurrency exchanges. The move follows the passing of a bill by the South Korean National Assembly in March, which focused on the introduction of a permit system for cryptocurrency exchanges.To maintain a permit, exchanges will have to report their operations to the Financial Intelligence Unit after obtaining real name-confirmed accounts from commercial banks.NH Bank sees this as an opportunity to enter and take a key position in the South Korea’s cryptocurrency sector, as senior vice president Jang Seung-hyun explained:“Through the consortium, we will step up efforts to take a lead in the local cryptocurrency industry.”

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Forever Tea Chain got strategic investment from GeekBeans, VPN Tube got strategic investment from Filenet.

Huobi Research

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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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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.

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