Huobi Research Weekly (Vol.121) 2020.6.29–2020.7.5)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 0.58%, with 55 projects decreased in value to varying degrees. According to coinmarketcap, as of July 5, 2020, the total market cap of cryptocurrencies was 260.5 billion U.S. dollars, increased by 0.58%, and the total market cap of the top 100 cryptocurrencies was 258.0 billion U.S. dollars, decreased by 0.02% from last week. 4 cryptocurrency projects entered the top 100 this week, namely FXC、BNT、ICH and BTM. As of July 5, 2020, Bitcoin was traded at 9073.94USD, 0.72% lower than its price last week. Ethereum was traded at 227.66USD, 1.11% higher than its price last week.

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

The average bitcoin Hashrate for the entire network reached 119.8 EH/s, increased by 3.99% from the previous week.Average Hashrate for the entire Ethereum network was 188.67TH/s this week, increased by 0.10%. Average difficulty for mining Bitcoin this week was 15.78T, decreased from last week. The average difficulty of mining Ethereum this week was 2369.18TH, increased by 0.04% from that of previous week.

In network activity, the average size of each block was 1.04MB, decreased by 6.31% from last week; there were on average 1839 transactions recorded in each block, decreased by 7.87% from the previous week. The average number of transactions per block in Ethereum this week was 159.8, decreased by 1.75%. The average size of each block was 34662.14 bytes, decreased by 5.34% compared to last week. As of July 5, 2020, average transaction fees of Bitcoin this week was $1.009, increased by 29.86% from last week. Average transaction fees of Ethereum this week was $0.543, decresead by 4.06%. The total number of Bitcoin addresses was 50874784 increased by 274097 (0.54%). Lisk was the most active project on GitHub this week, with 111 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, ZWS chain got strategic investment from JD capital、uxsino and mlogcn, ChitMonks got 0.65 million dollars in Pre-A investment from True Unicorn India Ventures.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 0.58%, with 55 projects decreased in value to varying degrees. According to coinmarketcap, as of July 5, 2020, the total market cap of cryptocurrencies was 260.5 billion U.S. dollars, increased by 0.58%, and the total market cap of the top 100 cryptocurrencies was 258.0 billion U.S. dollars, decreased by 0.02% from last week, among which, VET had the largest increased of 64.66%, bringing its market cap ranking from №28 to №20, ACA had the largest decreased of -60.91%, bringing its market cap ranking from №14 to №27. In addition, there were 4 projects that entered TOP100, namely, BTM (Bytom, increased 22.98%, Now №96), FXC (Flexacoin, increased 32.40%, Now №92), BNT (Bancor, increased 35.79%, Now №91), ICH (Idea Chain Coin, increased 64.11%, Now №82). As of July 5, 2020, Bitcoin was traded at 9073.94USD, 0.72% lower than its price last week. Ethereum was traded at 227.66USD, 1.11% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 3.93% compared with the same period of last week. In this week, 45 of the top 100 projects increased in 24h trading volume, led by COMP with a weekly increase of 1195.43%; there were 54 projects decreased in their 24h trading volume, there were 25 projects that saw over 20% decrease in their 24h trading volume, while 6 projects fell by more than 50%, led by DCR, with a decreased of 93.10%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On July 5, 2020, the overall market cap of the top 10 cryptocurrencies was 226.5 billion USD, decreased by 0.23% from last week, accounting for 86.95% of the total market capitalization of cryptocurrencies, decreased by 0.71% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 64.17%, decreased by 0.84% 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 Application Project got the largest increase. As of July 5, 2020, the total market cap of coin projects reached 188.8 billion USD, decreased by 0.89%. The average market cap of coin projects reached 4.72 billion USD, decreased by 3.37%. The total market cap of platform projects reached 36.7 billion USD, increased by 4.04%. The average market cap of platform projects reached 1.41 billion USD, increased by 4.04%. The total market cap of application class projects reached 23.0 billion USD, increased by 1.11%. The average market cap of application class projects reached 0.74 billion USD, increased by 4.37%. The total market cap of asset-backed token projects reached 9.44 billion USD, decreased by 0.38%. The average market cap of asset-backed token projects reached 3.14 billion USD, decreased by 0.38%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of July 5, 2020, among the top 100 projects, the number of coin class projects increase 1, application class projects decrease 1, 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 73.18% 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 29, 2020- July 5, 2020 ,the average bitcoin Hashrate for the entire network reached 119.8 EH/s, increased by 3.99% from the previous week.

Average Hashrate for the entire Ethereum network was 188.67TH/s this week, increased by 0.10%.

This week, the difficulty of mining Bitcoin decreased and Ethereum increased. As of July 5, 2020, average difficulty for mining Bitcoin this week was 15.78T, decreased from last week. The average difficulty of mining Ethereum this week was 2369.18TH, increased by 0.04% from that of previous week.

The number of blocks in Bitcoin increased by 5.43%. Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased 0.39%. In the past week, Bitcoin mined 1088 blocks, increased by 5.43% from the previous week. Among the top five pools were F2Pool、Poolin、AntPool、BTC.com、Huobi.Pool, these 5 pools mined 177、174、138、132 and 77 blocks respectively, accounting for 16.27 %、15.99 %、12.68 %、12.13 % and 7.08 % of all Bitcoins mined this week. The Hashrate was 19.83EH/s、19.49EH/s、15.46EH/s、14.79EH/s and 8.62EH/s, respectively.

In the past week, Ethereum’s entire network mined 48068 blocks, increased 0.39% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Zhizhu.top and Nanopool, each mined 13740、10081、4355、3534 and 2737 blocks respectively, accounting for 28.5845%、20.9724%、9.0601%、7.3521% and 5.6940% of all Ethereum mined this week, respectively.

2.2 Activity Statisti

The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from June 29, 2020- July 5, 2020, the average size of each block was 1.04MB, decreased by 6.31% from last week; there were on average 1839 transactions recorded in each block, decreased by 7.87% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 159.8, decreased by 1.75%. The average size of each block was 34662.14 bytes, decreased by 5.34% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 60.84%. Number of unconfirmed transactions in Ethereum increased by 1.28% from the previous week. As of July 5, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 3752, decreased by 60.84% from last week. There were 103884.0 unconfirmed transactions in the Ethereum network, increased by 1.28% from last week, with the lowest amount of unconfirmed transactions in the week being 67403 and the highest amount being 114553.

Total transaction fees of Bitcoin increased but Ethereum decreased. As of July 5, 2020, average transaction fees of Bitcoin this week was $1.009, increased by 29.86% from last week. Average transaction fees of Ethereum this week was $0.543, decresead by 4.06%.

The average number of distinct miners per day in Ethereum decreased by 2.18% from last week. From June 29, 2020- July 5, 2020, the average number of distinct miners per day in Ethereum this week was 49.4, decreased by 2.18% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum decreased this week. As of July 5, 2020, there were 10581 Bitcoin nodes, increased by 0.30% compared to last week, of which 1958 nodes were in the U.S, 1796 nodes were Germany, and 190 nodes were in China(№10), each accounting for 18.50%, 16.97% and 1.80% of the total number of Bitcoin nodes, respectively.

As of July 5, 2020, there were 7573 Ethereum nodes, decreased by 6.37% from the previous week. Specifically, there were 1965 nodes in the U.S, 1043 nodes in China, and 763 nodes in Germany, each accounting for 25.95%, 13.77%, 10.08% 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 July 5, 2020, the total number of Bitcoin addresses was 50874784 increased by 274097 (0.54%).

LSK was the most active project on GitHub this week. From June 29, 2020 — July 5, 2020, Lisk was the active project repository on GitHub with a total of 111 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 960k, 603k and 170k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 951.8k, and 511k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. SIA and Quant Network Successfully Test Blockchain Interoperability

SIA, a European payment services business, and U.K.-based technology company Quant Network successfully tested cross-blockchain interoperability between different protocols, SIA said.SIA and Quant Network first announced their partnership on June 5. Their aim is to work on cross-platform applications and services for banks and financial institutions. The partnership aims to integrate Quant Network’s blockchain operating system Overledger into SIA’s SIAchain infrastructure and enable interoperability. It hopes to bring solutions to challenges that financial institutions are facing with blockchain integration. Both firms were able to integrate Overledger technology within SIAchain and bridge permissioned blockchain activities. SIA said this allows for cross-platform applications such as notarization, payments, and know-your-customer or KYC services.

2. Hyundai Adds Another Piece to Their Growing Blockchain Ecosystem

Hyundai is reportedly looking to launch a blockchain ecosystem through its Europe-based subsidiary, Hdac, and IT arm, Hyundai BS&C, after registering three business trademarks with the Korea Intellectual Property Office.According to Chosun, a local media outlet, Hyundai BS&C’s CEO Chung Dae-sun applied to the intellectual property authorities for the brand names Altum, Atolo, and Rizon. Each application has the description “electronic wallets that can hold cryptocurrencies.” The data from the recent trademark filing indicates that the company may aim to provide services like crypto trading, crypto ATMs, crypto-related hardware, software, crypto issuance, and sales.Initial reporting claims that these services could contain basic functions required for a Proof-of-Stake, or PoS, ecosystem, like Dapp, storage, and transmission.

3. Austrian Crypto Users Will Soon Be Able to Spend Crypto at 2,500 Locations

Crypto holders in Austria will soon be able to spend their coins at more than 2,500 points of acceptance using A1 Payment — one of the largest mobile network operators in the country.According to an announcement made by Austrian fintech firm Salamantex, its Crypto Payment Service Software is now integrated into the A1 Payment platform. Merchants will start accepting Bitcoin (BTC), Ether (ETH) or Dash, instead of cash or credit cards, in summer 2020. Markus Pejacsevich, the chief operating officer of Salamantex, said:“Our goal is to make paying with digital currencies at the checkout as easy and natural as we have been used to with credit cards for decades. With A1, we have a partner for the Austria-wide roll-out who, just like us, is convinced of this payment system of the future and works towards making payment with digital assets accessible to the broad masses.”

3.2 International Policies

1. Bank of Japan Will Begin Experimenting With a Digital Yen

The Bank of Japan has announced it will begin experimenting with a central bank digital currency (CBDC) to check its feasibility from a technical perspective.BoJ wants to digitize cash but it remains to be seen if Japan can catch up with China which has already begun testing its own CBDC. This is the first time the BoJ has revealed it would commence a Proof of Concept (PoC) process with the digital yen but the bank is yet to reveal a timetable.In a report called Technical Hurdles for CBDC, the bank stated it would “check the feasibility of CBDC from technical perspectives, collaborate with other central banks and relevant institutions, and consider introducing a CBDC”.BoJ thinks there are two major technical hurdles: universal access and resilience. The former refers to providing accessibility to everyone, including those without a smartphone. Surprisingly, according to Nikkei, as of 2018, only 65% of Japanese have smartphones. BoJ said “it is important to develop CBDC to be available to a variety of users”. ‘Resilience’ refers to offline availability when electric power is down. BoJ emphasized the importance of accessibility in any kind of environment, even in an emergency situation such as an earthquake.

2. South Korean NGO Announces Blockchain-Based Healthcare Platform

The Commons Foundation, a South Korean non-governmental organization, revealed its plans to develop a blockchain-based platform that aims to handle health epidemics in the wake of the COVID-19 crisis.According to Digital Today, the NGO will rely on blockchain public services to create an epidemiological research system to suit the coming post-coronavirus era. The NGO explained that a public blockchain network, called “MicroBitcoin”, will be the one that the Common Foundation relies on to develop the platform. They have chosen it for its solidity and security, and state the technology is robust enough to prevent the compromisation of hackers.The platform will encrypt all personal records on a public blockchain network to “increase reliability and make data forgery impossible.”

3. European Innovation Council Awards $5M to Six Blockchain Projects

A technology unit at the European Commission has awarded millions of dollars to several blockchain projects in an effort to support the use of blockchain in socially beneficial ways.The European Innovation Council has awarded 5 million euros ($5.6 million) to six blockchain initiatives within its “Blockchains for Social Good” program.Announcing the news on Tuesday, the EIC noted that the prize intends to promote blockchain development in the areas of traceability, fair trade, financial inclusion and decentralized circular economy.The awarded startups include Dutch content authenticity firm WordProof, British startup PPP, Finnish GMeRitS, Oxfam’s UnBlocked Cash Project OXBBU, French e-commerce platform CKH2020 and Italy-based digital marketplace project PROSUME. The EIC was launched by the European Commission to support “high-risk, high-impact ideas, turning science into new business” and accelerate innovation. Launched in 2017, the EIC is currently in the pilot stage and is expected to be fully implemented in 2021.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, ZWS chain got strategic investment from JD capital、uxsino and mlogcn, ChitMonks got 0.65 million dollars in Pre-A investment from True Unicorn India Ventures.

Huobi Research

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