Huobi Research Weekly (Vol.129) 2020.8.24–2020.8.30)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 2.74%, with 57 projects increased in value to varying degrees. According to coinmarketcap, as of August 30, 2020, the total market cap of cryptocurrencies was 373.4 billion U.S. dollars, increased of 2.74%, and the total market cap of the top 100 cryptocurrencies was 364.8 billion U.S. dollars, increased by 2.46% from last week. 5 cryptocurrency projects entered the top 100 this week, namely NMR、NEST、RUNE、ICH、and BZRX. As of August 30, 2020, Bitcoin was traded at 11711.51USD, 0.43% higher than its price last week. Ethereum was traded at 428.4USD, 9.55% 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 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.The average transaction fees of Bitcoin decreased and Ethereum decreased. LINK was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 123.7 EH/s, increased by 1.56% from the previous week.Average Hashrate for the entire Ethereum network was 217.31TH/s this week, increased by 4.21%. Average difficulty for mining Bitcoin this week was 17.55T, increased by 3.60% from last week. The average difficulty of mining Ethereum this week was 2737.2TH, increased by 4.08% from that of previous week.

In network activity, the average size of each block was 1.33MB, increased by 0.76% from last week; there were on average 2005 transactions recorded in each block, decreased by 12.52% from the previous week. The average number of transactions per block in Ethereum this week was 175.1, decreased by 4.37%. The average size of each block was 38707.85 bytes, decreased by 5.09% compared to last week. Average transaction fees of Bitcoin this week was $2.591, decreased by 25.33% from last week. Average transaction fees of Ethereum this week was $2.772, decresead by 1.77%. The total number of Bitcoin addresses was 53122759 increased by 236548 (0.45%). Link was the most active project on GitHub this week, with 24 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, Perpetual Protocol got 1.8 million dollars in strategic investment from Multicoin Capital leader, Crowdz got 2.0 million dollars in A+ round investment from Bold Capital Partners,Augment Ventures,TFX Capital.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 2.74%, with 57 projects increased in value to varying degrees. According to coinmarketcap, as of August 30, 2020, the total market cap of cryptocurrencies was 373.4 billion U.S. dollars, increased of 2.74%, and the total market cap of the top 100 cryptocurrencies was 364.8 billion U.S. dollars, increased by 2.46% from last week, among which, NEST had the largest increased of 480.99%, bringing its market cap ranking from №241 to №82, BPS had the largest decreased of -17.41%, bringing its market cap ranking from №60 to №71. In addition, there were 5 projects that entered TOP100, namely, NMR (Numeraire, increased 19.67%, Now №100), RUNE (THORChain, increased 34.33%, Now №93), ICH (Idea Chain Coin, increased 36.69%, Now №95), BZRX (bZx Protocol, increased 144.13%, Now №85), NEST (NEST Protocol, increased 480.99%, Now №82). As of August 30, 2020, Bitcoin was traded at 11711.51USD, 0.43% higher than its price last week. Ethereum was traded at 428.4USD, 9.55% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 21.29% compared with the same period of last week. In this week, 70 of the top 100 projects increased in 24h trading volume, led by CELO with a weekly increase of 5706.88%; there were 28 projects decreased in their 24h trading volume, there were 13 projects that saw over 20% decrease in their 24h trading volume, while 4 projects fell by more than 50%, led by ATOM, with a decreased of -63.12%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On August 30, 2020, the overall market cap of the top 10 cryptocurrencies was 312.8 billion USD, increased by 1.94% from last week, accounting for 83.77% of the total market capitalization of cryptocurrencies, decreased by 0.65% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 57.93%, decreased by 1.33% 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 30, 2020, the total market cap of coin projects reached 248.0 billion USD, increased by 0.98%. The average market cap of coin projects reached 6.20 billion USD, decreased by 1.54%. The total market cap of platform projects reached 68.7 billion USD, increased by 8.35%. The average market cap of platform projects reached 2.08 billion USD, increased by 8.35%. The total market cap of application class projects reached 37.6 billion USD, increased by 3.28%. The average market cap of application class projects reached 1.50 billion USD, increased by 3.28%. The total market cap of asset-backed token projects reached 10.3 billion USD, decreased by 1.41%. The average market cap of asset-backed token projects reached 5.19 billion USD, increased by 47.89%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of August 30, 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 67.99% 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 August 24, 2020- August 30 , 2020 ,the average bitcoin Hashrate for the entire network reached 123.7 EH/s, increased by 1.56% from the previous week.

Average Hashrate for the entire Ethereum network was 217.31TH/s this week, increased by 4.21%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of August 30, 2020, average difficulty for mining Bitcoin this week was 17.55T, increased by 3.60% from last week. The average difficulty of mining Ethereum this week was 2737.2TH, increased by 4.08% from that of previous week.

The number of blocks in Bitcoin increased by 0.51%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks increased 0.80%. In the past week, Bitcoin mined 995 blocks, increased by 0.51% from the previous week. Among the top five pools were F2Pool、 Poolin、 BTC.com、Huobi.pool AntPool, these 5 pools mined 175、127、121、95 and 88 blocks respectively, accounting for 17.59%、12.76%、12.16%、9.55% and 8.84% of all Bitcoins mined this week. The Hashrate was 21.76EH/s、15.79EH/s、15.05EH/s、11.81EH/s and 10.94EH/s, respectively.

In the past week, Ethereum’s entire network mined 48785 blocks, increased 0.80% from the previous week. The top five pools were SparkPool, Ethermine, ,F2pool, Zhizhu.top, and UUpool, each mined 11723、10542、4328、4189 and 3057 blocks respectively, accounting for 24.0299%、21.6091%、8.8716%、8.5867% and 6.2663% 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 24, 2020- August 30, 2020, the average size of each block was 1.33MB, increased by 0.76% from last week; there were on average 2005 transactions recorded in each block, decreased by 12.52% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 175.1, decreased by 4.37%. The average size of each block was 38707.85 bytes, decreased by 5.09% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 30.23%. Number of unconfirmed transactions in Ethereum decreased by 3.43% from the previous week. As of August 30, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 3423, decreased by 30.23% from last week. There were 153802.51 unconfirmed transactions in the Ethereum network, decreased by 3.43% from last week, with the lowest amount of unconfirmed transactions in the week being 126727 and the highest amount being 183301.

Total transaction fees of Bitcoin decreased and Ethereum decreased. As of August 30, 2020, average transaction fees of Bitcoin this week was $2.591, decreased by 25.33% from last week. Average transaction fees of Ethereum this week was $2.772, decresead by 1.77%.

The average number of distinct miners per day in Ethereum increased by 2.24% from last week. From August 24, 2020- August 30, 2020, the average number of distinct miners per day in Ethereum this week was 54.7, increased by 2.24% from last week.

The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum decreased this week. As of August 30, 2020, there were 9841 Bitcoin nodes, decreased by 5.39% compared to last week, of which 1876 nodes were in the U.S, 1776 nodes were Germany, and 175 nodes were in China(№10), each accounting for 19.06%, 18.05% and 1.78% of the total number of Bitcoin nodes, respectively.

As of August 30, 2020, there were 8711 Ethereum nodes, increased by 1.29% from the previous week. Specifically, there were 2328 nodes in the U.S, 1145 nodes in China, and 920 nodes in Germany, each accounting for 26.72%, 13.14%, 10.56% 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 30, 2020, the total number of Bitcoin addresses was 53122759 increased by 236548 (0.45%).

LINK was the most active project on GitHub this week. From August 24, 2020 — August 30, 2020, Lisk was the active project repository on GitHub with a total of 24 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 956k, 621k and 177k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 963k, and 522k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. ICON app offers remote KYC for South Korea’s second-largest bank

South Koreans will soon be able to remotely open bank accounts requiring KYC verification using only their smartphones.According to an Aug. 26 announcement from ICONLOOP, the technology arm of South Korean blockchain network ICON, is partnering with Shinhan Bank to issue KYC compliance certificates. The bank is South Korea’s second-largest, with $375 billion in assets. The blockchain firm will allow customers to use its Zzeung mobile app’s blockchain-based decentralized identity (DID) technology to open bank accounts.Such compliance certificates allow users to bypass redundant KYC compliance processes to request service at Shinan Bank, the second largest in South Korea. Once customers verify their identity using the Zzeung app, Shinhan will verify their information and issue a compliance certificate, which can be used to request password changes.Zzeung is the only mobile app approved by the Financial Services Commission. “This issuance of KYC compliance certification with Shinhan Bank is of great significance because it is the first commercialization of DID services used in the financial sector in Korea,” said ICONLOOP CEO Jong-hyup Kim.

2. MasterCard Asia files patent for Tangle-based device billing system

MasterCard’s Singapore-based subsidiary filed a patent with the U.S. Patent Office detailing a payment system for using hardware devices that specifically mentions Iota’s (MIOTA) Tangle technology. The patent claim, published on Aug. 20, proposes a pay-as-you-go system that uses a “transparent data storage system and aggregation.” Users must provide their credentials to gain access to a particular hardware device — the patent cites copiers and 3D printers as examples — and billed strictly for what they used.The proposed data storage systems could be based on a Tangle or a generic blockchain. The patent makes no mentions of the Iota network or its currency, as the system could also be used in private environments.The patent claims that such a system would present an improvement over the traditional payment mechanisms commonly used for shared hardware devices. It argues that prepaid cards lock users into the system even if they may not know how much usage they will see, while full pay-per-use “often use attached machines that accept physical currency to operate.” These legacy systems may also limit the payment options available to users, the patent notes.

3. Natural Gas-Powered Trucking Could Get a Boost From Blockchain Tech

German energy firm Uniper Global Commodities SE has implemented a blockchain-based platform for its small-scale liquefied natural gas customers (ssLNG). Using the platform, Uniper expects to make its trade process more efficient and also streamline LNG distribution for its LNG-for-trucks subsidiary, Liqvis GmbH.Rising concerns regarding air pollution have moved major companies towards utilizing eco-friendly fuel such as LNG in the transport industry, especially in commercial trucks. This has made it more crucial to make ssLNG trade process more efficient.However, most small-scale businesses face difficulties utilizing the growing demand for LNG due to the lack of a cost-effective supply chain. They also lack the experience in handling the safety challenges involved in the creation and maintenance of these supply chains.To help small-scale companies surmount these hurdles, Uniper had developed the platform in collaboration with the Indian IT service provider Wipro. In an announcement on Aug. 21, Wipro had said that currently, the ssLNG market had been burdened with extensive manual and paper-based transactions that resulted in high operation costs.The blockchain platform developed by Wipro is expected to reduce manual paperwork. It will use a consortium model for Uniper’s ssLNG customers that will help reduce turnaround time and other inefficiencies while adding transparency and scalability.The platform will bring together multiple peer-to-peer trading cycle participants and enable them to place orders, add supply, execute delivery of goods, validate the state of goods and settle bills. It will automate all these processes through the use of smart contracts.

3.2 International Policies

1. Russia’s Sberbank and S7 Airlines to sell flight tickets for tokens

Russia’s largest bank is reportedly collaborating with S7 Airlines on a new ticket sale platform that will enable corporate clients with instant settlement through smart contracts and tokens.According to an Aug. 26 report by local newspaper Kommersant, the new system is planned to roll out in September 2020. This would be the first time virtual tokens are used for payment and settlement in Russia, the report notes.As reported, the new system is only targeting corporate clients at the current stage of development. The blockchain-powered system intends to cut settlement time from as many as 10 days to just 20 seconds, representatives at Sberbank and S7 reportedly said.According to Kommersant, the new ticket sales system uses a proprietary blockchain platform that allows companies to develop their own blockchain applications as well as create smart contracts. As such, S7 Airlines has already placed its blockchain ticketing app on the platform by Sberbank, Kommersant states.It is not immediately clear how exactly tokenization will be implemented within this new initiative. Sberbank will purportedly act as the owner of the tokenization platform, which will “tokenize money” from a corporate client’s account using smart contracts.

2. Brazil’s central bank examines the benefits of a CBDC

The Central bank of Brazil — or Banco Central do Brazil — is laying the groundwork for a Central Bank Digital Currency (CBDC) with an official statement revealing it has already formed a dedicated group to study the crypto industry.According to the central bank, the team consists of 12 members in an intergovernmental group that will assess how the CBDC could fit with the national payments ecosystem and what its impact could be on the economy and the society.Previous reports detailed that Brazil spends around 90 billion reals ($16 billion) annually to guarantee a functional supply of paper money in circulation, representing between 1% and 2% of its GDP. The central bank says that the new group will examine how much money will be saved by issuing CBDCs and if it will be beneficial overall for the national economy. Rafael Sarres de Almeida, an official from the Information Technology Department of the Brazilian central bank, said in the statement:“The subject of digital currencies addressed by central banks has been on the research agenda of many central banks for some time. However, this year, there was a greater focus on a more practical approach.”

3. UK FCA wants to include crypto firms in financial crime reporting rules

Cryptocurrency firms in the United Kingdom could soon be faced with more extensive Anti-Money Laundering (AML) reporting requirements.In a consultation paper published this month, the Financial Conduct Authority proposed broadening annual financial crime reporting obligations to include all crypto asset exchange and custodian wallet providers.The regulator says that by extending its reporting rules to a wider range of firms, it will be able to deepen its understanding of which firms may have intrinsic money laundering risks due to their activities. The paper claims that the information provided through more inclusive annual reports will help the FCA’s supervisory approach in the financial sector to become more “data-led.”Since 2016, the FCA has been seeking to use data analytics to innovate its regulatory approach and reduce the burden on enterprises, while mitigating money laundering risks to the U.K.’s financial system and ensuring its overall integrity.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Perpetual Protocol got 1.8 million dollars in strategic investment from Multicoin Capital leader, Crowdz got 2.0 million dollars in A+ round investment from Bold Capital Partners,Augment Ventures,TFX Capital.

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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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