Huobi Research Weekly (Vol.135) 2020.10.5–2020.10.11)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.66%, with 61 projects increased in value to varying degrees. According to coinmarketcap, as of October 11, 2020, the total market cap of cryptocurrencies was 358.4 billion U.S. dollars, increased of 4.66%, and the total market cap of the top 100 cryptocurrencies was 349.7 billion U.S. dollars, increased by 5.23% from last week. 1 cryptocurrency projects entered the top 100 this week, namely STORJ. As of October 11, 2020, Bitcoin was traded at 11375.51USD, 6.10% higher than its price last week. Ethereum was traded at 374.12USD, 5.49% higher than its price last week.

The hashrate of Bitcoin increased and Ethereum increased by this week. This week, the difficulty of mining Bitcoin decreased 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 increased and the average block size of Ethereum increased this week.The average transaction fees of Bitcoin increased but Ethereum decreased. BCH was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 141.7EH/s, increased by 4.58% from the previous week.Average Hashrate for the entire Ethereum network was 257.99TH/s this week, increased by 2.32%. Average difficulty for mining Bitcoin this week was 19.29T, decreased by 0.10% from last week. The average difficulty of mining Ethereum this week was 3318.95TH, increased by 1.93% from that of previous week.

In network activity, the average size of each block was 1.30MB, decreased by 1.52% from last week; there were on average 2087 transactions recorded in each block, increased by 1.36% from the previous week. The average number of transactions per block in Ethereum this week was 161.4, increased by 0.44%. The average size of each block was 37517.71 bytes, increased by 0.65% compared to last week. Average transaction fees of Bitcoin this week was $2.882, increased by 17.97% from last week. Average transaction fees of Ethereum this week was $1.62, decresead by 19.80%. The total number of Bitcoin addresses was 54670996 increased by 289698 (0.53%). Bitcoin Cash was the most active project on GitHub this week, with 27 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, Braintrus got 18 million dollars in strategic investment from ACME and Blockchange, ParaFi Capital got strategic investment from Glalaxy Digital.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.66%, with 61 projects increased in value to varying degrees. According to coinmarketcap, as of October 11, 2020, the total market cap of cryptocurrencies was 358.4 billion U.S. dollars, increased of 4.66%, and the total market cap of the top 100 cryptocurrencies was 349.7 billion U.S. dollars, increased by 5.23% from last week, among which, REN had the largest increased of 53.20%, bringing its market cap ranking from №58 to №40, PMA had the largest decreased of -84.68%, bringing its market cap ranking from №88 to №87. In addition, there were 1 projects that entered TOP100, namely, STORJ (Storj, increased 25.21%, Now №84). As of October 11, 2020, Bitcoin was traded at 11375.51USD, 6.10% higher than its price last week. Ethereum was traded at 374.12USD, 5.49% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by -32.44% compared with the same period of last week. In this week, 54 of the top 100 projects increased in 24h trading volume, led by REN with a weekly increase of 439.96%; there were 46 projects decreased in their 24h trading volume, there were 20 projects that saw over 20% decrease in their 24h trading volume, while 6 projects fell by more than 50%, led by LEO, with a decreased of -76.68%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On October 11, 2020, the overall market cap of the top 10 cryptocurrencies was 302.7billion USD, increased by 5.54% from last week, accounting for 84.44% of the total market capitalization of cryptocurrencies, increased by 0.70% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 58.75%, increased by 0.80% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Coin Project got the largest increase. The average market cap of Coin Project got the largest increase. As of October 11, 2020, the total market cap of coin projects reached 242.0 billion USD, increased by 6.14%. The average market cap of coin projects reached 5.38 billion USD, increased by 6.14%. The total market cap of platform projects reached 60.4 billion USD, increased by 4.73%. The average market cap of platform projects reached 2.23 billion USD, increased by 4.73%. The total market cap of application class projects reached 30.8 billion USD, increased by 2.26%. The average market cap of application class projects reached 1.28 billion USD, increased by 2.26%. The total market cap of asset-backed token projects reached 16.3 billion USD, decreased by 0.21%. The average market cap of asset-backed token projects reached 4.08 billion USD, decreased by 0.21%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of October 11, 2020 among the top 100 projects, the number of coin class projects remain the same, application class projects remain the same, 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 69.22% 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 October 5, 2020- October 11, 2020, the average bitcoin Hashrate for the entire network reached 141.7EH/s, increased by 4.58% from the previous week.

Average Hashrate for the entire Ethereum network was 257.99TH/s this week, increased by 2.32%.

This week, the difficulty of mining Bitcoin decreased but Ethereum increased. As of October 11, 2020, average difficulty for mining Bitcoin this week was 19.29T, decreased by 0.10% from last week. The average difficulty of mining Ethereum this week was 3318.95TH, increased by 1.93% from that of previous week.

The number of blocks in Bitcoin increased by 2.31%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks decreased. In the past week, Bitcoin mined 1020 blocks, increased by 2.31% from the previous week. Among the top five pools were BTC.com、Poolin、F2Pool、Huobi.pool 、AntPool, these 5 pools mined 150、144、129、113 and 90 blocks respectively, accounting for 14.71%、14.12%、12.65%、11.08% and 8.82% of all Bitcoins mined this week. The Hashrate was 20.59EH/s、19.77EH/s、17.71EH/s、15.51EH/s and 12.35EH/s, respectively.

In the past week, Ethereum’s entire network mined 47778 blocks, decreased in the previous week. The top five pools were SparkPool, Ethermine, ,F2pool, Zhizhu.top, and Nanopool, each mined 11327、9931、4806、4086 and 2652 blocks respectively, accounting for 23.7076%、20.7857%、10.0590%、8.5521% and 5.5507% 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 October 5, 2020- October 11, 2020, the average size of each block was 1.30MB, decreased by 1.52% from last week; there were on average 2087 transactions recorded in each block, increased by 1.36% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 161.4, increased by 0.44%. The average size of each block was 37517.71 bytes, increased by 0.65% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 316.86%. Number of unconfirmed transactions in Ethereum decreased by 0.45% from the previous week. As of October 11, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 2572, increased by 316.86% from last week. There were 154608.58 unconfirmed transactions in the Ethereum network, decreased by 0.45% from last week, with the lowest amount of unconfirmed transactions in the week being 102249 and the highest amount being 169165.

Total transaction fees of Bitcoin increased but Ethereum decreased. As of October 11, 2020, average transaction fees of Bitcoin this week was $2.882, increased by 17.97% from last week. Average transaction fees of Ethereum this week was $1.62, decresead by 19.80%.

The average number of distinct miners per day in Ethereum decreased by 1.86% from last week. From October 5, 2020- October 11, 2020, the average number of distinct miners per day in Ethereum this week was 58.1, decreased by 1.86% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum decreased this week. As of October 11, 2020, there were 10634 Bitcoin nodes, increased by 0.29% compared to last week, of which 1854 nodes were in the Germany, 1836 nodes were U.S, and 197 nodes were in China(№11), each accounting for 17.43% and 17.27% of the total number of Bitcoin nodes, respectively.

As of October 11, 2020, there were 8581 Ethereum nodes, decreased by 1.70% from the previous week. Specifically, there were 2305 nodes in the U.S, 1082 nodes in China, and 975 nodes in Germany, each accounting for 26.86%, 12.61%, 11.36% 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 October 11, 2020, the total number of Bitcoin addresses was 54670996 increased by 289698 (0.53%).

BCH was the most active project on GitHub this week. From October 5, 2020 — October 11, 2020, Bitcoin Cash was the active project repository on GitHub with a total of 27 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 954k, 626k and 178k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 972k, and 538k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. GM and Honda publish specs for decentralized electric car charging network

A Honda and GM-led working group has unveiled a global standard for using distributed ledger technology to create decentralized electric vehicle charging networks. The Mobility Open Blockchain Initiative (MOBI) has launched a global standard for integrating blockchain technology into a decentralized vehicle charging network.The storage of excess energy generated by wind or solar is a big problem for the renewable energy industry as batteries are very expensive. But electric vehicles already have significant storage capacity so there’s been a lot of work around plugging them into decentralized energy grids to store renewable energy.MOBI’s Electric Vehicle Grid Integration (EVGI) Working Group’s first design specifications seek to lay the foundation for decentralized charging networks that better utilize excess green energy, detailing systems for “vehicle-to-grid-integration,” “tokenized carbon credits,” and “peer-to-peer applications.” MOBI founder and COO, Tram Vo, asserted that the standard will offer benefits to firms representing “all sides of the electric vehicle and charging ecosystem,” stating:“Electric vehicles, chargers, and electricity producers can have a secure identity, communicate with a standard messaging format, and automatically record transactions such as charging, generation, and exchange on a distributed ledger.”

2. KPMG unveils blockchain solution to track climate emissions

International accounting firm KPMG has unveiled its blockchain based Climate Accounting Infrastructure (CAI) solution to help organizations measure, report, and offset their greenhouse gas emissions.CAI uses blockchain to securely store environmental data in a financial system as part of organizations’ climate risk assessments and asset valuations. It aims to help companies meet environmental, social, and corporate governance (ESG) targets.The solution integrates an organization’s existing systems, including IoT sensors, with external data sources to establish a verifiable trail of emissions and offsets recorded on blockchain. According to KPMG’s U.S. blockchain leader Arun Ghosh the use of blockchain means data reports will be disclosed in a transparent and trustworthy manner in order “to meet stakeholder expectations and to comply with emerging regulations.”“As investors broaden their focus beyond financial factors to include ESG practices, organizations are increasing efforts to reducing carbon footprints, alongside transparent disclosure of progress.”Organizations will also be able to model the impact of climate risks on business operations and financial performance through real-time environmental data and advanced analytics.

3. Port of Rotterdam testing blockchain and AI for renewables trading

The Port of Rotterdam’s blockchain subsidiary, Blocklab, has been trialing a decentralized electricity trading system to help lower costs and optimize the use of renewables on its microgrid.The system, called Distro, has been jointly developed by Blocklab and S&P Global Platts and has been operational as a trial for two months.Distro uses blockchain technology, smart contracts and artificial intelligence to support the decentralized, high-frequency trading of renewable energy by commercial consumers looking to optimize and manage their energy use. It matches demand with the intermittent power generated from different sources, specifically solar and battery storage.Each market participant is allocated an AI energy-trading agent that learns their behavior, choices and needs and provides them with energy at the optimal price. Buyers and sellers can access localized, dynamic prices for energy, and the system is designed to deter excessive power consumption when generation is low by offering lower prices when the supply is abundant. Blocklab said this builds upon “proven practices in commodities and financial market[s],” optimized through AI to automatically balance supply and demand. The trial involved 20 million blockchain-validated, cleared and settled transactions, which cumulatively lowered the cost for commercial users by 11% and improved local renewables producers’ revenues by 14%.

3.2 International Policies

1. US attorney general releases guidelines for enforcing crypto laws

William Barr, the attorney general for the U.S., published official guidelines for keeping crypto markets accountable. The lead U.S. attorney’s Cyber-Digital Task Force put together the guidelines, officially calling them: Cryptocurrency: An Enforcement Framework, according to an Oct. 8 statement from the U.S. Department of Justice. The statement explained:”The Framework provides a comprehensive overview of the emerging threats and enforcement challenges associated with the increasing prevalence and use of cryptocurrency; details the important relationships that the Department of Justice has built with regulatory and enforcement partners both within the United States government and around the world; and outlines the Department’s response strategies.” The lengthy report itself included 83 pages of content on crypto, its “legitimate uses,” its “illicit uses,” applicable regulating bodies, and a game plan going forward. Among the mentioned categories within the crypto space, the report pointed out privacy assets. The Department of Justice specifically name-checks Zcash, Monero and DASH usage as “indicative of possible criminal behavior.”

2. DBS and Standard Chartered to launch blockchain platform to curb trade finance fraud

The Singapore-based multinational banking entity DBS and Standard Chartered have completed the proof-of-concept of their blockchain trade finance platform called the Trade Finance Registry.The two entities developed the PoC in collaboration with 12 other banks on top of the blockchain platform of Singapore-headquartered company Dltledgers. Dltledgers said that the banks involved in the project now intend to launch the platform for commercial use by central banks around the globe. Backed by Enterprise Singapore — a government enterprise under the Ministry of Trade and Industry — and the Association of Banks in Singapore, the trade finance platform is expected to help banks fight fraud in lending and commodity trade.According to Dltledgers founder Samir Neji, the platform uses the company’s blockchain-based TradeDoc Validation Registry to help banks detect fraud in real time.

3. Estonian central bank to conduct digital currency research

The Estonian central bank, Eesti Pank, announced the launch of a research program to study how to build a digital currency infrastructure.According to a statement, Eesti Pank partnered with technology companies SW7 Group and Guardtime for the research project. It aims to see if a keyless signature infrastructure (KSI) blockchain solution can run its virtual currency program. Estonia already uses KSI blockchain technology for its e-government services. The bank’s project will also look into new payment solutions “that can be made possible by using electronic IDs and other Estonian e-government solutions.” The project will consist of several phases and will last about two years. The first phase will study how to build a scalable, practical, and secure platform that meets the requirements of digital funds. At the same time, the platform also needs to tick the boxes of speed, security, privacy, and resilience. The bank stressed that they are continually striving to develop the financial environment and their payment system to keep pace with the times and meet the needs of citizens.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Braintrus got 18 million dollars in strategic investment from ACME and Blockchange, ParaFi Capital got strategic investment from Glalaxy Digital.

Huobi Research

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Huobi Research was founded in April 2016 and started research and explorations in various aspects in Blockchain area since March 2018. We cover various fields such as Blockchain technology research, industry analysis, application innovation and economic model explorations. We aim to establish a research platform and to offer theoretical foundations as well as judgements of trends in Blockchain to the public, ultimately promoting the development of the Blockchain industry.

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