Huobi Research Weekly (Vol.122) 2020.7.6–2020.7.12）
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Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 5.39%, with 80 projects increased in value to varying degrees. According to coinmarketcap, as of July 12, 2020, the total market cap of cryptocurrencies was 274.5 billion U.S. dollars, increased by 5.39%, and the total market cap of the top 100 cryptocurrencies was 271.1 billion U.S. dollars, increased by 5.07% from last week. 3 cryptocurrency projects entered the top 100 this week, namely BTT、ERD、and AMPL. As of July 12, 2020, Bitcoin was traded at 9276.5USD, 2.27% higher than its price last week. Ethereum was traded at 242.13USD, 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 increased and the average block size of Bitcoin increased. The average number of transactions per block decreased and the average block size of Ethereum decreased 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 124.5 EH/s, increased by 3.92% from the previous week.Average Hashrate for the entire Ethereum network was 190.59TH/s this week, increased by 1.01%. Average difficulty for mining Bitcoin this week was 15.78T, as same as last week. The average difficulty of mining Ethereum this week was 2391.01TH, increased by 0.92% from that of previous week.
In network activity, the average size of each block was 1.09MB, increased by 4.81% from last week; there were on average 1966 transactions recorded in each block, increased by 6.91% from the previous week. The average number of transactions per block in Ethereum this week was 157.6, decreased by 1.41%. The average size of each block was 34027.71 bytes, decreased by 1.83% compared to last week. As of July 12, 2020, average transaction fees of Bitcoin this week was $0.99, decreased by 1.88% from last week. Average transaction fees of Ethereum this week was $0.552, incresead by 1.66%. The total number of Bitcoin addresses was 51143211 increased by 268427 (0.53%). Lisk was the most active project on GitHub this week, with 76 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, ZkSystems got 3 million euros in seed investment from FinLab AG、EOS VC lead, All Win Media got 0.12 billion dollars in strategic investment from Venrock，Coin Fund，IOSG，Fundamental Labs etc.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 5.39%, with 80 projects increased in value to varying degrees. According to coinmarketcap, as of July 12, 2020, the total market cap of cryptocurrencies was 274.5 billion U.S. dollars, increased by 5.39%, and the total market cap of the top 100 cryptocurrencies was 271.1 billion U.S. dollars, increased by 5.07% from last week, among which, AMPL had the largest increased of 306.87%, bringing its market cap ranking from №197 to №83, MIN had the largest decreased of -19.93%, bringing its market cap ranking from №44 to №55. In addition, there were 3 projects that entered TOP100, namely, BTT (BitTorrent, increased 29.03%, Now №100), ERD (Elrond, increased 164.40%, Now №62), AMPL (Ampleforth, increased 306.87%, Now №83). As of July 12, 2020, Bitcoin was traded at 9276.5USD, 2.27% higher than its price last week. Ethereum was traded at 242.13USD, 1.11% higher than its price last week.
The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 7.46% compared with the same period of last week. In this week, 60 of the top 100 projects increased in 24h trading volume, led by THETA with a weekly increase of 495.87%; there were 39 projects decreased in their 24h trading volume, there were 21 projects that saw over 20% decrease in their 24h trading volume, while 6 projects fell by more than 50%, led by IOST, with a decreased of 84.51%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On July 12, 2020, the overall market cap of the top 10 cryptocurrencies was 235.5 billion USD, increased by 3.97% from last week, accounting for 85.77% of the total market capitalization of cryptocurrencies, decreased by 1.17% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 62.27%, decreased by 1.90% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Application Project got the largest increase. The average market cap of Application Project got the largest increase. As of July 12, 2020, the total market cap of coin projects reached 195.1 billion USD, increased by 3.37%. The average market cap of coin projects reached 4.76 billion USD, increased by 0.85%. The total market cap of platform projects reached 40.3 billion USD, increased by 9.85%. The average market cap of platform projects reached 1.44 billion USD, increased by 2.00%. The total market cap of application class projects reached 26.1 billion USD, increased by 13.51%. The average market cap of application class projects reached 0.93 billion USD, increased by 25.67%. The total market cap of asset-backed token projects reached 9.43 billion USD, decreased by 0.05%. The average market cap of asset-backed token projects reached 3.14 billion USD, decreased by 0.05%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of July 12, 2020, among the top 100 projects, the number of coin class projects increase 1, application class projects decrease 3, platform class projects increase 2 and asset-backed token class remain the same. The largest overall market cap by segment was still coin projects, accounting for 71.99% 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 July 6, 2020- July 12, 2020 ,the average bitcoin Hashrate for the entire network reached 124.5 EH/s, increased by 3.92% from the previous week.
Average Hashrate for the entire Ethereum network was 190.59TH/s this week, increased by 1.01%.
This week, the difficulty of mining Bitcoin not changed and Ethereum increased. As of July 12, 2020, average difficulty for mining Bitcoin this week was 15.78T, as same as last week. The average difficulty of mining Ethereum this week was 2391.01TH, increased by 0.92% from that of previous week.
The number of blocks in Bitcoin increased by 1.01%. Top 5 rankings not changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased 0.27%. In the past week, Bitcoin mined 1099 blocks, increased by 1.01% from the previous week. Among the top five pools were F2Pool、Poolin、AntPool、BTC.com、Huobi.Pool, these 5 pools mined 179、158、119、117 and 106 blocks respectively, accounting for 16.29 %、14.38 %、10.83 %、10.65 % and 9.65 % of all Bitcoins mined this week. The Hashrate was 20.34EH/s、17.95EH/s、13.52EH/s、13.29EH/s and 12.04EH/s, respectively.
In the past week, Ethereum’s entire network mined 48200 blocks, increased 0.27% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Zhizhu.top and Nanopool, each mined 13816、10066、4390、3813 and 2636 blocks respectively, accounting for 28.6639%、20.8838%、9.1079%、7.9108% and 5.4689% 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 and the average block size of Ethereum decreased this week. According to blockchain.info, from July 6, 2020- July 12, 2020, the average size of each block was 1.09MB, increased by 4.81% from last week; there were on average 1966 transactions recorded in each block, increased by 6.91% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 157.6, decreased by 1.41%. The average size of each block was 34027.71 bytes, decreased by 1.83% compared to last week.
Number of unconfirmed transactions in Bitcoin decreased by 31.77%. Number of unconfirmed transactions in Ethereum increased by 25.64% from the previous week. As of July 12, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 2560, decreased by 31.77% from last week. There were 130522.52 unconfirmed transactions in the Ethereum network, increased by 25.64% from last week, with the lowest amount of unconfirmed transactions in the week being 128 and the highest amount being 150314.
Total transaction fees of Bitcoin decreased but Ethereum increased. As of July 12, 2020, average transaction fees of Bitcoin this week was $0.99, decreased by 1.88% from last week. Average transaction fees of Ethereum this week was $0.552, incresead by 1.66%.
The average number of distinct miners per day in Ethereum increased by 3.24% from last week. From July 6, 2020- July 12, 2020, the average number of distinct miners per day in Ethereum this week was 51.0, increased by 3.24% from last week.
The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum decreased this week. As of July 12, 2020, there were Bitcoin nodes, decreased by 1.25% compared to last week, of which 1900 nodes were in the U.S, 1758 nodes were Germany, and 181 nodes were in China(№10), each accounting for 18.18%, 16.82% and 1.73% of the total number of Bitcoin nodes, respectively.
As of July 12, 2020, there were 7430 Ethereum nodes, decreased by 1.89% from the previous week. Specifically, there were 1936 nodes in the U.S, 1034 nodes in China, and 760 nodes in Germany, each accounting for 26.06%, 13.92%, 10.23% 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 12, 2020, the total number of Bitcoin addresses was 51143211 increased by 268427 (0.53%).
LSK was the most active project on GitHub this week. From July 6, 2020 — July 12, 2020, Lisk was the active project repository on GitHub with a total of 76 commits.
2.3 Community Activity Statistics
The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 959k, 607k and 171k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 952.2k, and 513k followers, respectively.
3. Weekly Blockchain News Review
3.1 Industrial Application
1. Volvo Invests in Blockchain Startup to Trace Cobalt in Its Batteries
On July 8, Volvo Cars Tech Fund announced their investment in blockchain traceability startup, Circulor.Volvo previously used Circulor’s traceability solution to track cobalt in its batteries. In the era where more consumers are becoming concerned with how the products they buy are produced, the ability to verify the entire supply chain may provide a competitive advantage or even become a necessity.Volvo may also be planning to use Circulor’s solution to trace carbon emissions. According to the chief procurement officer at Volvo, Martina Buchhauser, the partnership will contribute to greater sustainability:“We are committed to an ethical supply chain for our raw materials and our partnership with Circulor has been instrumental in that regard. By supporting Circulor’s ongoing development we can expand the use of blockchain technology in our operations and contribute to a more sustainable business.”
2. Major Indian Farmer Producer Organization to Use Blockchain for Supply Chains
One of India’s largest farm producer organizations (FPO), Sahyadri Farmers Producer Co, is integrating blockchain into its business process.FPOs are member-based institutions of farmers that are the result of a government-led initiative. The organizations help fars sell agricultural produce at the most advantageous prices. Local news outlet The Hindu Business Line reported that Sahyadri will use blockchain for its supply chains to increase efficiency and transparency in the traceability of food products. The founder of Sahyadri, Vivek Shinde, said that in the present scenario, farmers get only 25% of the final price of sold goods. However, with increased efficiency through blockchain implementation, they can share as much as 50% of their revenue with farmers.The organization expects to use blockchain-based data sharing to improve trust in its pricing and sales information that it shares with farmers and buyers.Blockchain integration will further allow customers to trace products back to the individual farmer who produced it. Customers will be able to do so using QR codes or digital maps attached to the products.
3. Mercedes-Benz Manufacturer Daimler to Collect Data Using Blockchain
Ocean Protocol, a decentralized data exchange protocol focussed on data collation, sharing, and monetization, has announced a pilot project partnering with Mercedes-Benz’ manufacturer Daimler AG.Daimler’s South East Asia subsidiary will use blockchain-based solutions to gather and monetize the firm’s data.The pilot will demonstrate Ocean Protocol’s recently launched “Compute-to-Data” protocol to protect the privacy of Daimler’s data while allowing the information to be analyzed and aggregated by third parties. Ocean is hoping that the pilot will attract further partnerships with major global firms, describing the pilot as a scalable blueprint for deployment.Hartmut Muller, Daimler’s vice president of IT, stated, “We believe in the power of blockchain to unlock the value of data in a decentralized way.”
3.2 International Policies
1. Italian Banking Industry Chose Decentralization Over Centralization
The Italian Banking Association, or ABI, uses a blockchain-based system called Spunta, built with decentralization in mind. In a recent panel, as part of a digital Unitize blockchain conference, ABI chief innovation officer Silvia Attanasio explained why the banking entity chose to go the decentralized blockchain route for Spunta — its blockchain solution built on enterprise blockchain platform Corda. If ABI had not gone the decentralized route, the entity would have needed to locate a centralized party to gather and manage a large amount of data on various fronts, Attanasio said on the July 8 panel, noting ABI’s rationale behind choosing a decentralized approach. “Spunta is a reconciliation process based on bilateral account,” Attanasio explained, noting the system as a method of operation behind the scenes. “It is about an exchange of information rather than an exchange of value,” she added.The ABI unveiled the blockchain-based concept in June 2019, pointing to a March 2020 launch date. The system, known as Spunta, essentially enhances processes around settlement and dealings between banks.
2. Afghan Government to Use Blockchain to Combat Counterfeit Drugs
Afghanistan’s healthcare ministry and several local pharmaceutical companies will use Fantom’s blockchain to combat counterfeit drugs.According to Fantom on July 6, its Opera blockchain will be used to track 80,000 units of four different pharmaceutical products in Afghanistan. After this initial pilot, the system will be scaled up to cover more products later this year. Fantom stated that local law enforcement seized 100 tons of counterfeit, outdated or substandard medicine in 2017. By tracking the products on-chain, the firm hopes to create an immutable audit trail that ensures the items are not tampered with along their movement along the supply chain. The tracked products will have a shipping label that is scanned at each stage of the distribution process. Each time the label is scanned, a hash of the product name, batch number, expiration date and other details will be timestamped and saved on the blockchain.A hash is a non-reversible mathematical function that generates an alphanumeric string that does not contain the data but allows individuals to verify whether the data provided is the same as that from which the hash is calculated.
3. South Korean National Assembly to Discuss Crypto Transaction Transparency
The South Korean National Assembly will host a talk titled “How to boost transparency in cryptocurrency transactions” on July 10. This news comes amid a recent child porn scandal that involved crypto transactions.According to the Kukto Ilbo, the seminar will discuss topics related to money-laundering prevention and the creation of a system that oversees crypto transactions. The Blockchain Law Association and blockchain media representatives from South Korea will also join the seminar.A special act law — already approved in the plenary session of the National Assembly — aims to introduce a digital asset business reporting system that includes customer identification and the establishment of money laundering prevention obligations.If the Government signs the law, the new laundering prevention law could potentially block crypto transactions related to illicit dark web sites as early as March 2021.Congressman Lee said:”Blockchain is the root of the digital economy, and transparency is key, but as cryptocurrencies are being used for crime, negative images started to accumulate. We need to prevent money laundering through technical cooperation with the investigative agencies.”
4.Weekly Investment Activities
2 investments activities took place in the blockchain industry this week, ZkSystems got 3 million euros in seed investment from FinLab AG、EOS VC lead, All Win Media got 0.12 billion dollars in strategic investment from Venrock，Coin Fund，IOSG，Fundamental Labs etc.
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