Huobi Research Weekly (Vol.126) 2020.8.3–2020.8.9)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 7.01%, with 85 projects increased in value to varying degrees. According to coinmarketcap, as of August 9, 2020, the total market cap of cryptocurrencies was 357.2 billion U.S. dollars, increased of 7.01%, and the total market cap of the top 100 cryptocurrencies was 351.2 billion U.S. dollars, increased by 6.34% from last week. 7 cryptocurrency projects entered the top 100 this week, namely BAND、MANA、STX、RLC、OCEAN、DIVI and KAVA. As of August 9, 2020, Bitcoin was traded at 11675.74USD, 5.67% higher than its price last week. Ethereum was traded at 391.12USD, 5.61% higher than its price last week.

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

The average bitcoin Hashrate for the entire network reached 122.3 EH/s, decreased by 2.00% from the previous week. Average Hashrate for the entire Ethereum network was 197.55TH/s this week, increased by 0.64%. Average difficulty for mining Bitcoin this week was 16.84T, as same sa last week. The average difficulty of mining Ethereum this week was 2481.97TH, increased by 0.68% from that of previous week.

In network activity, the average size of each block was 1.33MB, increased by 3.10% from last week; there were on average 1997 transactions recorded in each block, decreased by 7.80% from the previous week. The average number of transactions per block in Ethereum this week was 183.2, decreased by 0.49%. The average size of each block was 39656.71 bytes, decreased by 1.72% compared to last week. Average transaction fees of Bitcoin this week was $ 3.253, decreased by 35.12% from last week. Average transaction fees of Ethereum this week was $ 1.681, incresead by 13.73%. The total number of Bitcoin addresses was 52349422 increased by 266071 (0.51%). Zeusshield was the most active project on GitHub this week, with 84 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, Wyre got 3 million dollars in B round investment from Pantera Capital leader, Infinite Fleet got 3.1 million dollars in strategic investment from SAFT,Charlie Lee,Adam Back,Max Keiser etc.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 7.01%, with 85 projects increased in value to varying degrees. According to coinmarketcap, as of August 9, 2020, the total market cap of cryptocurrencies was 357.2 billion U.S. dollars, increased of 7.01%, and the total market cap of the top 100 cryptocurrencies was 351.2 billion U.S. dollars, increased by 6.34% from last week, among which, BAND had the largest increased of 268.28%, bringing its market cap ranking from №111 to №48, AMPL had the largest decreased of -39.85%, bringing its market cap ranking from №40 to №64. In addition, there were 7 projects that entered TOP100, namely, DIVI (Divi, increased 22.88%, Now №76), STX (Blockstack, increased 43.26%, Now №917), RLC (iExec RLC, increased 58.00%, Now №93), KAVA (Kava.io, increased 98.81%, Now №82), OCEAN (Ocean Protocol, increased 109.83%, Now №81), MANA (Decentraland, increased 125.52%, Now №87), BAND (Band Protocol, increased 268.28%, Now №48). As of August 9, 2020, Bitcoin was traded at 11675.74USD, 5.67% higher than its price last week. Ethereum was traded at 391.12USD, 5.61% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 39.99% compared with the same period of last week. In this week, 60 of the top 100 projects decreased in 24h trading volume, led by BAND with a weekly increase of 1457.03%; there were 60 projects decreased in their 24h trading volume, there were 44 projects that saw over 20% decrease in their 24h trading volume, while 14 projects fell by more than 50%, led by SOLO, with a decreased of 91.89%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On August 9, 2020, the overall market cap of the top 10 cryptocurrencies was 307.6 billion USD, increased by 5.78% from last week, accounting for 86.09% of the total market capitalization of cryptocurrencies, decreased by 1.01% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 60.31%, decreased by 0.77% 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 Platform Project got the largest increase. As of August 9, 2020, the total market cap of coin projects reached 244.6 billion USD, increased by 5.87%. The average market cap of coin projects reached 6.11 billion USD, increased by 3.23%. The total market cap of platform projects reached 61.2 billion USD, increased by 7.58%. The average market cap of platform projects reached 2.04 billion USD, increased by 14.76%. The total market cap of application class projects reached 35.0 billion USD, increased by 9.35%. The average market cap of application class projects reached 1.29 billion USD, increased by 5.30%. The total market cap of asset-backed token projects reached 10.3 billion USD, increased by 0.56%. The average market cap of asset-backed token projects reached 3.46 billion USD, increased by 0.56%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of August 9, 2020 among the top 100 projects, the number of coin class projects increase 1, application class projects increase 1, platform class projects decrease 2 and asset-backed token class remain the same. The largest overall market cap by segment was still coin projects, accounting for 69.64% 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 August 3, 2020- August 9 , 2020 ,the average bitcoin Hashrate for the entire network reached 122.3 EH/s, decreased by 2.00% from the previous week.

Average Hashrate for the entire Ethereum network was 197.55TH/s this week, increased by 0.64%.

This week, the difficulty of mining Bitcoin not changed but Ethereum increased. As of August 9, 2020, average difficulty for mining Bitcoin this week was 16.84T, as same sa last week. The average difficulty of mining Ethereum this week was 2481.97TH, increased by 0.68% from that of previous week.

The number of blocks in Bitcoin increased by 2.78%. Top 5 rankings not changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased 0.68%. In the past week, Bitcoin mined 1034 blocks, increased by 2.78% from the previous week. Among the top five pools were Poolin、 F2Pool、BTC.com、AntPool、Huobi.Pool, these 5 pools mined 156、151、129、109 and 93 blocks respectively, accounting for 15.09%、14.60%、12.48%、10.54% and 8.99% of all Bitcoins mined this week. The Hashrate was 18.59EH/s、17.99EH/s、15.37EH/s、12.99EH/s and 11.08EH/s, respectively.

In the past week, Ethereum’s entire network mined 48857 blocks, increased 0.68% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Zhizhu.top and Nanopool, each mined 13133、10289、4167、4136 and 2646 blocks respectively, accounting for 26.8805%、21.0594%、8.5290%、8.4655% and 5.4158% of all Ethereum mined this week, respectively.

2.2 Activity Statistics

The average number of transactions per block decreased but 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 August 3, 2020- August 9, 2020, the average size of each block was 1.33MB, increased by 3.10% from last week; there were on average 1997 transactions recorded in each block, decreased by 7.80% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 183.2, decreased by 0.49%. The average size of each block was 39656.71 bytes, decreased by 1.72% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 86.53%. Number of unconfirmed transactions in Ethereum increased by 0.11% from the previous week. As of August 9, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 2742, decreased by 86.53% from last week. There were 147512.2 unconfirmed transactions in the Ethereum network, increased by 0.11% from last week, with the lowest amount of unconfirmed transactions in the week being 83775 and the highest amount being 256306.

Total transaction fees of Bitcoin decreased but Ethereum increased. As of August 9, 2020, average transaction fees of Bitcoin this week was $3.253, decreased by 35.12% from last week. Average transaction fees of Ethereum this week was $ 1.681, incresead by 13.73%.

The average number of distinct miners per day in Ethereum increased by 3.84% from last week. From August 3, 2020- August 9, 2020, the average number of distinct miners per day in Ethereum this week was 54.1, increased by 3.84% from last week.

The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum increased this week. As of August 9, 2020, there were 10216 Bitcoin nodes, decreased by 0.61% compared to last week, of which 1904 nodes were in the U.S, 1772 nodes were Germany, and 170 nodes were in China(№10), each accounting for 18.64%, 17.35% and 1.66% of the total number of Bitcoin nodes, respectively.

As of August 9, 2020, there were 8766 Ethereum nodes, increased by 56.48% from the previous week. Specifically, there were 2381 nodes in the U.S, 1155 nodes in China, and 887 nodes in Germany, each accounting for 27.61%, 13.18%, 10.12% 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 August 9,2020, the total number of Bitcoin addresses was 52349422 increased by 266071 (0.51%).

ZSC was the most active project on GitHub this week. From August 3, 2020 — August 9, 2020, Zeusshield was the active project repository on GitHub with a total of 84 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 957k, 616k and 175k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 956.8k, and 515k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Coca-Cola Embraces DLT and Ethereum for Supply Chain Efficiency

Coke One North America, or CONA, a partner of the largest United States-based Coca-Cola bottling company, will use The Baseline Protocol to enhance transparency and reduce friction in “cross-organization supply chain transactions.”The project will see CONA partner with distributed ledger technology firms as well as Baseline Protocol founding members Unibright and Provide to establish a “Coca-Cola Bottling Harbor,” allowing streamlined transactions among both internal bottler-suppliers and external suppliers of raw materials. The announcement notes that the 12-largest North American Coca-Cola bottlers began using a Hyperledger Fabric-based blockchain platform for internal supply chain management last year, driving increased “transparency and efficiency” in bottlers’ intricate supply chains.The new project will see CONA expand its use of DLT beyond its internal network to incorporate external suppliers, such as raw material vendors distributing cans and bottles.

2. Honeywell Creates a Blockchain ‘Search Engine’ for Aircraft Parts Data

Honeywell International Inc has created a blockchain-based system to solve the complex documentation and data storage processes of the aerospace industry. The company announced that its blockchain subsidiary GoDirect Trade will integrate the aircraft record generation process into its blockchain system. Doing so will allow Honeywell customers to search aerospace parts and service data through its interface. In its present state, data related to aerospace parts and services are scattered across computer systems and hard copies. This results in airline companies and operators sometimes losing important documents that are crucial for proving the legitimacy of parts.GoDirect Trade general manager Lisa Butters said that by using blockchain, Honeywell intends to record all data related to the thousands of aerospace parts it manufactures and repairs every day, adding: “In aerospace, this is a game-changing technology that will simplify and transform recordkeeping for aircraft owners and airlines around the world.”By recording all data on a single ledger, Honeywell expects to ease the process of searching and accessing aircraft-related data and make data handling more efficient for its customers.

3. Can Blockchain E-Passports Help Save the Tourism Industry?

Enterprise-focused blockchain company ShareRing has launched a blockchain based contact tracing solution it will offer to 2.6 million hotel and activity providers that currently use one of the company’s services. The anonymous e-passport app hopes to solve the privacy issues facing similar tracing apps.ShareRing’s app, which focuses on tourism’s $9 trillion tourism industry, allows users to upload important documentation, such as e-visa on arrival (eVOA), passport information, travel insurance, flight and accommodation bookings and a negative COVID-19 test result. When a user of the app subsequently tests positive to the virus, the app will anonymously send the necessary information to the government, allowing others to be notified if they have been in contact.The app can also integrate with eVOA systems, travel insurance companies, airlines, hotels and other relevant organisations, allowing companies to scan the app to reveal test results without revealing any personal information.

3.2 International Policies

1. Russia’s Biggest Bank Considers Launching Its Own Stablecoin

Shortly after Russia’s president, Vladimir Putin, signed the country’s recent cryptocurrency law, the country’s largest bank voiced its considerations. Sberbank, a state-owned company and the largest bank in Russia, is considering the possibility of issuing its own token, according to its key executives. According to the report, the potential stablecoin could be used for settlements involving other digital financial assets. Popov reportedly noted that Sberbank would be able to issue the token in accordance with the recently passed crypto law called “On Digital Financial Assets,” or DFA. The exec said:“We probably may issue a stablecoin on the basis of the law that has been adopted recently. As we can peg this stablecoin to the ruble, this token could become a basis or an instrument for settlements involving other digital financial assets.” The news came soon after Russia’s president, Vladimir Putin, officially signed Russia’s DFA bill into law on July 31. By signing the bill, Putin prohibited Russian residents from making payments in cryptocurrencies like Bitcoin (BTC) starting from Jan. 1, 2021.

2. Russian Government Bans Anonymous Wallet Deposits

The Russian Federation has banned anonymous deposits to online wallets in a move that will affect 10 million users across the country. According to lawmakers, this initiative is supposed to curb illegal activity, such as the financing of terrorism and the illegal drug trade. Online wallets through services such as Yandex, WebMoney, PayPal, and Kiwi are very popular in Russia. These services maintain approximately 10 million users who use the accounts anonymously by topping them up with cash. Some people use these anonymous wallets to purchase cryptocurrency, although the exact numbers are unknown. Antonina Levashenko, an economist quoted by RBK, believes that these measures will initially have no effect on the Blockchain space. As Russia tightens its anti-money laundering procedures, however, the existing ban may eventually be applied to virtual currencies as well.

3. Tel Aviv Stock Exchange to Launch Blockchain Securities Platform

Israel will have its first central securities lending platform this November, built on blockchain technology. In an announcement on July 28, TASE said the platform will serve an essential function in the country’s capital markets, which currently lack a central system for securities lending.Contrary to the current set-up — — which fails to meet the needs of investors, in TASE’s view — the new blockchain-based system will concentrate all securities lending activities under one roof and enable direct borrowing among investors across a range of major financial instruments. In March of this year, TASE launched a dedicated testing environment for the platform, allowing members to execute loan transactions. Drawing on these results, the exchange is adjusting its systems in the run-up to November.The exchange has highlighted the value offered by blockchain technologies; in particular, support for peer-to-peer transactions, smart contract functionality, and increased transaction security due to blockchain’s immutable quality.TASE states that this lets the exchange custodians and clients operate at cheaper costs with a higher level of security.In a statement, Orly Greenfeld — senior vice president and director of the TASE clearing department — said, “Blockchain technology will enable securities lending trading while securing information and supporting the increase in the number of transactions.”

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Wyre got 3 million dollars in B round investment from Pantera Capital leader, Infinite Fleet got 3.1 million dollars in strategic investment from SAFT,Charlie Lee,Adam Back,Max Keiser etc.

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