Huobi Research Weekly (Vol.127) 2020.8.10–2020.8.16)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 5.38%, with 79 projects increased in value to varying degrees. According to coinmarketcap, as of August 16, 2020, the total market cap of cryptocurrencies was 376.5 billion U.S. dollars, increased of 5.38%, and the total market cap of the top 100 cryptocurrencies was 368.6 billion U.S. dollars, increased by 4.96% from last week. 7 cryptocurrency projects entered the top 100 this week, namely EWT、RUNE、NMR、YFI、ANT、RSR and JST. As of August 16, 2020, Bitcoin was traded at 11892.8USD, 1.90% higher than its price last week. Ethereum was traded at 433.79USD, 11.00% higher than its price last week.

The hashrate of Bitcoin increased and Ethereum increased by this week. This week, the difficulty of mining Bitcoin increased and 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 increased and the average block size of Ethereum increased 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 127.3 EH/s, increased by 4.09% from the previous week.Average Hashrate for the entire Ethereum network was 207.33TH/s this week, increased by 4.95%. Average difficulty for mining Bitcoin this week was 16.94T, increased by 0.59% last week. The average difficulty of mining Ethereum this week was 2607.23TH, increased by 5.05% from that of previous week.

In network activity, the average size of each block was 1.23MB, decreased by 7.52% from last week; there were on average 2011 transactions recorded in each block, increased by 0.70% from the previous week. The average number of transactions per block in Ethereum this week was 187.5, increased by 2.35%. The average size of each block was 42565.57 bytes, increased by 7.34% compared to last week. Average transaction fees of Bitcoin this week was $2.557, decreased by 21.40% from last week. Average transaction fees of Ethereum this week was $3.585, incresead by 113.27%. The total number of Bitcoin addresses was 52627011 increased by 277589 (0.53%). Zeusshield was the most active project on GitHub this week, with 39 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, BICHADALU got 10 million yuan in Pre-A round investment, Shui di hu zhu got 0.2 billion dollars in D round investment.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 5.38%, with 79 projects increased in value to varying degrees. According to coinmarketcap, as of August 16, 2020, the total market cap of cryptocurrencies was 376.5 billion U.S. dollars, increased of 5.38%, and the total market cap of the top 100 cryptocurrencies was 368.6 billion U.S. dollars, increased by 4.96% from last week, among which, EWT had the largest increased of 374.19%, bringing its market cap ranking from №170 to №99, AMPL had the largest decreased of -29.06%, bringing its market cap ranking from №64 to №97. In addition, there were 7 projects that entered TOP100, namely, RUNE (THORChain, increased 20.71%, Now №98), YFI (yearn.finance, increased 62.69%, Now №89), ANT (Aragon, increased 72.04%, Now №74), JST (JUST, increased 146.08%, Now №87), RSR (Reserve Rights, increased 153.95%, Now №81), NMR (Numeraire, increased 156.70%, Now №99), EWT (Energy Web Token, increased 374.19%, Now №45). As of August 16, 2020, Bitcoin was traded at 11892.8USD, 1.90% higher than its price last week. Ethereum was traded at 433.79USD, 11.00% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 30.83% compared with the same period of last week. In this week, 61 of the top 100 projects increased in 24h trading volume, led by JST with a weekly increase of 1167.06%; there were 37 projects decreased in their 24h trading volume, there were 22 projects that saw over 20% decrease in their 24h trading volume, while 6 projects fell by more than 50%, led by MANA, with a decreased of -84.88%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On August 16, 2020, the overall market cap of the top 10 cryptocurrencies was 319.6 billion USD, increased by 3.93% from last week, accounting for 84.90% of the total market capitalization of cryptocurrencies, decreased by 1.19% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 58.31%, decreased by 2.00% 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 Asset-backed Project got the largest increase. As of August 16, 2020, the total market cap of coin projects reached 251.2 billion USD, increased by 2.72%. The average market cap of coin projects reached 6.28 billion USD, increased by 0.15%. The total market cap of platform projects reached 68.6 billion USD, increased by 12.18%. The average market cap of platform projects reached 2.14 billion USD, increased by 12.18%. The total market cap of application class projects reached 38.3 billion USD, increased by 9.68%. The average market cap of application class projects reached 1.47 billion USD, increased by 9.68%. The total market cap of asset-backed token projects reached 10.3 billion USD, decreased by 0.70%. The average market cap of asset-backed token projects reached 5.15 billion USD, increased by 48.96%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of August 16, 2020 among the top 100 projects, the number of coin class projects increase 1, application class projects and platform class projects both remain the same, asset-backed token class decrease 1. The largest overall market cap by segment was still coin projects, accounting for 68.16% 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 August 10, 2020- August 16 , 2020 ,the average bitcoin Hashrate for the entire network reached 127.3 EH/s, increased by 4.09% from the previous week.

Average Hashrate for the entire Ethereum network was 207.33TH/s this week, increased by 4.95%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of August 16, 2020, average difficulty for mining Bitcoin this week was 16.94T, increased by 0.59% last week. The average difficulty of mining Ethereum this week was 2607.23TH, increased by 5.05% from that of previous week.

The number of blocks in Bitcoin increased by 4.64%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks decreased 1.21%. In the past week, Bitcoin mined 1082 blocks, increased by 4.64% from the previous week. Among the top five pools were Poolin、 F2Pool、BTC.com、AntPool、58COIN&1THash, these 5 pools mined 172、158、122、113 and 89 blocks respectively, accounting for 15.90%、14.60%、11.28 %、10.44% and 8.23% of all Bitcoins mined this week. The Hashrate was 20.51EH/s、18.84EH/s、14.55EH/s、13.47EH/s and 10.61EH/s, respectively.

In the past week, Ethereum’s entire network mined 48264 blocks, decreased 1.21% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Zhizhu.top and Nanopool, each mined 12859、10092、4335、4039 and 2736 blocks respectively, accounting for 26.6430%、20.9100%、8.9818%、8.3686% and 5.6688% of all Ethereum mined this week, respectively.

2.2 Activity Statistics

The average number of transactions per block increased but 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 August 10, 2020- August 16, 2020, the average size of each block was 1.23MB, decreased by 7.52% from last week; there were on average 2011 transactions recorded in each block, increased by 0.70% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 187.5, increased by 2.35%. The average size of each block was 42565.57 bytes, increased by 7.34% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 42.12%. Number of unconfirmed transactions in Ethereum increased by 6.81% from the previous week. As of August 16, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 1587, decreased by 42.12% from last week. There were 157552.73 unconfirmed transactions in the Ethereum network, increased by 6.81 % from last week, with the lowest amount of unconfirmed transactions in the week being 107562 and the highest amount being 177732.

Total transaction fees of Bitcoin decreased but Ethereum increased. As of August 16, 2020, average transaction fees of Bitcoin this week was $2.557, decreased by 21.40% from last week. Average transaction fees of Ethereum this week was $3.585, incresead by 113.27%.

The average number of distinct miners per day in Ethereum increased by 1.11% from last week. From August 10, 2020- August 16, 2020, the average number of distinct miners per day in Ethereum this week was 54.7, increased by 1.11% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of August 16, 2020, there were 10440 Bitcoin nodes, increased by 2.19% compared to last week, of which 1866 nodes were in the U.S, 1742 nodes were Germany, and 174 nodes were in China(№10), each accounting for 17.87%, 16.69% and 1.67% of the total number of Bitcoin nodes, respectively.

As of August 16, 2020, there were 9138 Ethereum nodes, increased by 4.24% from the previous week. Specifically, there were 2558 nodes in the U.S, 1157 nodes in China, and 924 nodes in Germany, each accounting for 27.99%, 12.66%, 10.11% 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 16, 2020, the total number of Bitcoin addresses was 52627011 increased by 277589 (0.53%).

ZSC was the most active project on GitHub this week. From August 10, 2020 — August 16, 2020, Zeusshield was the active project repository on GitHub with a total of 39 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 956k, 618k and 176k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 959.1k, and 516k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Japan’s Top HR Firm Is Working on a Blockchain-Based Recruitment App

Persol Group, one of the largest human resource companies in Japan, has partnered with major Japanese IT and electronics company, NEC Corporation, to build a new blockchain-powered recruiting platform. Persol Group is one of the largest staffing companies in the country, with 32,000 employees and a market cap of $5.7 billion as of 2017.According to the announcement, the two companies have begun working on a Proof-of-Concept to test a direct recruiting service that utilizes blockchain technology to securely manage personal data, prevent falsification of information, and ensure authenticity.This new platform is expected to target the shortage of IT human resources in Japan. Citing data from Japan’s Ministry of Economy, Trade, and Industry, the companies’ reps noted that the skill gap could account for 800,000 people by 2020.According to the announcement, NEC is acting as a technology provider within the initiative. Teruyuki Nakajima, general manager of corporate business incubation at NEC, said:“NEC will start a new direct recruiting initiative that utilizes its own blockchain technology. Through these initiatives, we hope that opportunities to find employment online will be provided to everyone fairly, and that a world where diverse work styles and lifestyles will be realized.”

2. New Blockchain Platform Aims to Help Countries Issue CBDCs More Easily

Blockchain firm Apollo Fintech has announced the completion of its National Payment Platform, or NPP on August 12. This new blockchain platform is a cashless system that supposedly enables a central bank to issue central bank digital currency for national adoption.The NPP system reportedly allows a government agency and central bank to onboard commercial banks and agents after CBDC is issued. It will include features such as SMS, QR codes, cards and offline codes on a mobile application that allows individuals and merchants to transact in a hypothetical CBDC.CEO of Apollo Fintech Stephen McCullah said, “[NPP] allows economic participants to save large amounts of time and resources and enables an economy to gain massive efficiencies at scale.”NPP is said to remove barriers to accessibility and usability by allowing physical access from any agent locally. Users can also complete CBDC transactions via text messages, meaning that older cellphone models can theoretically transact. McCullah said: “By solving accessibility and usability challenges, NPP in conjunction with Apollo Fintech’s other financial innovations can lead to accelerated mass adoption of digital payments and cashless transactions.”

3. Mitsubishi Launches Blockchain Platform for Metal Trading

The metals and minerals resource trading subsidiary of Mitsubishi Corporation, Mitsubishi Corporation RtM Japan Ltd, has launched a blockchain platform named ECO for precious metals trading.Developed by Mitsubishi in partnership with the American blockchain company Skuchain, the platform is built on top of Skuchain’s EC3 platform for blockchain-based supply chain management and finance.According to the official announcement, ECO will ease metal trades between counterparties by generating, managing and executing invoices and trade confirmations. For the start, Mitsubishi will only bring its “most valued customers” on the platform but it plans to soon expand and implement ECO to cover a wider portion of its supply chain system. Using the ECO platform, trading parties will be able to sign trade documents and upload them on the blockchain. They can then share the signed documents with others in real-time and hide any commercially sensitive information that they do not want to reveal.The company said it will be adding more features to ECO in the future to solve other crucial supply chain challenges in the metal trading industry.

3.2 International Policies

1. New Bill in Germany Proposes to Digitize Securities With Blockchain

Federal regulators in Germany are looking to modernize the country’s securities with blockchain technology.On Aug. 11, Germany’s Federal Ministry of Finance (BMF) and the Federal Ministry of Justice and Consumer Protection (BMJV) introduced a draft bill on blockchain-based digital securities.In the official statement, the authorities outlined that the adoption of digital securities is one of the core aspects of the federal government’s blockchain strategy.According to current legislation in Germany, financial instruments that are classified as securities must be secured in a document. Blockchain technology would thus help guarantee liquidity and compliance by providing a replacement for the paper certificate, the BMF and BMJV said.According to the authorities, the proposed draft bill also improves regulatory clarity, stipulating that the Federal Financial Supervisory Authority will be acting as a major regulator in the field of blockchain-based e-stocks.Also known as BaFin, the agency will be responsible for monitoring the issuance of digitized securities and the maintenance of decentralized ledgers in accordance with the German Banking Act, the official statement notes.

2. One Million South Koreans Now Have Blockchain Drivers Licenses

One million South Koreans have foregone their physical drivers license in favour of a blockchain-powered digital alternative used in conjunction with the PASS smartphone app.This represents more than 3% of the entire driving population in South Korea, which sat at 32.6 million licensed drivers in 2019 according to Statista. This is the first authorized digital identification card to be used throughout South Korea and received approval by the nation’s Ministry of Science and ICT in September 2019.The project was launched in May by the National Police Agency in partnership with the Korea Road Traffic Authority, and the country’s three major telecommunication providers: SK, KT and LG U+. By last month, 27 of South Korea’s driver’s license testing centres were using the PASS app to renew and reissue digital drivers licenses.The legally recognised ID solution can also be used for identification and proof-of-age requirements, such as at convenience stores and retail chains selling cigarettes and alcohol. Users show their licence via a barcode or QR code on the app. Non-Korean residents receiving English versions of the licenses.Other industries, including rental car and shared rides services, are also researching the ability to use these IDs as a replacement for face-to-face verification checks.

3. USDA Proposes Blockchain Ledger for Organic Product Supply Chain

The U.S. Department of Agriculture has proposed amending its rules on organic products to include implementing blockchain technology to trace its supply chain.According to an Aug. 5 report from the U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS), the agency said it expects electronic tracking systems, including digital ledger technology (DLT), will play an “essential role” in the traceability of its supply chain of organic products.“DLT can provide secure, verifiable, transparent, and near-instantaneous tracking at the item level in complex supply chains,” the report stated. “Critically, DLT can also protect confidential business information and trade secret information by automatically restricting sensitive information to authorized entities.”However, the agency acknowledged that utilizing an emergent technology like DLT would require additional time and development before a system could be implemented in the organic food industry. “Barriers to widespread adoption of an electronic tracking system include inadequate access to technology and connectivity in rural areas, acceptance of universal electronic standards (interoperability), and distribution of costs,” the proposed amendment stated.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, BICHADALU got 10 million yuan in Pre-A round investment, Shui di hu zhu got 0.2 billion dollars in D round investment.

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