Huobi Research Weekly (Vol.136) (2020.10.12–2020.10.18)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 0.47%, with 34 projects increased in value to varying degrees. According to coinmarketcap, as of October 18, 2020, the total market cap of cryptocurrencies was 360.1 billion U.S. dollars, increased of 0.47%, and the total market cap of the top 100 cryptocurrencies was 352.2 billion U.S. dollars, increased by 0.71% from last week. 3 cryptocurrency projects entered the top 100 this week, namely NMR、GNT and RSR. As of October 18, 2020, Bitcoin was traded at 11504.01USD, 1.17% higher than its price last week. Ethereum was traded at 379.06USD, 1.40% 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 but the difficulty of mining Ethereum decreased. The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block increased but the average block size of Ethereum decreased this week.The average transaction fees of Bitcoin decreased and Ethereum decreased. BCH was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 144.3EH/s, increased by 1.83% from the previous week.Average Hashrate for the entire Ethereum network was 262.66TH/s this week, increased by 1.81%. Average difficulty for mining Bitcoin this week was 19.52T, increased by 1.19% from last week. The average difficulty of mining Ethereum this week was 3312.66TH, decreased by 0.19% from that of previous week.

In network activity, the average size of each block was 1.03MB, decreased by 20.77% from last week; there were on average 1752 transactions recorded in each block, decreased by 16.05% from the previous week. The average number of transactions per block in Ethereum this week was 170.1, increased by 5.39%. The average size of each block was 37371.00 bytes, decreased by 0.39% compared to last week. Average transaction fees of Bitcoin this week was $1.463, decreased by 49.24% from last week. Average transaction fees of Ethereum this week was $0.905, decresead by 44.14%. The total number of Bitcoin addresses was 55030303 increased by 359307 (0.66%). Bitcoin Cash was the most active project on GitHub this week, with 49 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, Archax got 8 million dollars in seed investment from Alameda Research,Amnis Ventures,Hudson Capital etc., Boardroom got angel investment from tandard Crypto leading.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 0.47%, with 61 projects increased in value to varying degrees. According to coinmarketcap, as of October 18, 2020, the total market cap of cryptocurrencies was 360.1 billion U.S. dollars, increased of 0.47%, and the total market cap of the top 100 cryptocurrencies was 352.2 billion U.S. dollars, increased by 0.71% from last week, among which, UNI had the largest increased of 101.71%, bringing its market cap ranking from №49 to №31, LEND had the largest decreased of -72.18%, bringing its market cap ranking from №31 to №67. In addition, there were 3 projects that entered TOP100, namely, GNT (Golem, decreased 1.29%, Now №96), NMR (Numeraire, increased 5.58%, Now №95), RSR (Reserve Rights, increased 31.04%, Now №86). As of October 18, 2020, Bitcoin was traded at 11504.01USD, 1.17% higher than its price last week. Ethereum was traded at 379.06USD, 1.40% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 12.24% compared with the same period of last week. In this week, 25 of the top 100 projects increased in 24h trading volume, led by BAT with a weekly increase of 171.73%; there were 72 projects decreased in their 24h trading volume, there were 52 projects that saw over 20% decrease in their 24h trading volume, while 16 projects fell by more than 50%, led by LEND, with a decreased of -92.33%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On October 18, 2020, the overall market cap of the top 10 cryptocurrencies was 305.9 billion USD, increased by 1.08% from last week, accounting for 84.95% of the total market capitalization of cryptocurrencies, increased by 0.51% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 59.15%, increased by 0.40% 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 18, 2020, the total market cap of coin projects reached 244.3 billion USD, increased by 0.93%. The average market cap of coin projects reached 5.55 billion USD, increased by 3.22%. The total market cap of platform projects reached 60.8 billion USD, increased by 0.70%. The average market cap of platform projects reached 2.17 billion USD, decreased by 2.89%. The total market cap of application class projects reached 30.5 billion USD, decreased by 1.02%. The average market cap of application class projects reached 1.27 billion USD, decreased by 1.02%. The total market cap of asset-backed token projects reached 16.4 billion USD, increased by 0.69%. The average market cap of asset-backed token projects reached 4.11 billion USD, increased by 0.69%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of October 18, 2020 among the top 100 projects, the number of coin class projects decrease 1, application class projects remain the same, platform class projects increase 1,and asset-backed token class remain the same.The largest overall market cap by segment was still coin projects, accounting for 69.37% 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 12, 2020- October 18, 2020, the average bitcoin Hashrate for the entire network reached 144.3EH/s, increased by 1.83% from the previous week.

Average Hashrate for the entire Ethereum network was 262.66TH/s this week, increased by 1.81%.

This week, the difficulty of mining Bitcoin increased but Ethereum decreased. As of October 18, 2020, average difficulty for mining Bitcoin this week was 19.52T, increased by 1.19% from last week. The average difficulty of mining Ethereum this week was 3312.66TH, decreased by 0.19% from that of previous week.

The number of blocks in Bitcoin increased by 3.92%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks increased by 3.43%. In the past week, Bitcoin mined 1060 blocks, increased by 3.92% from the previous week. Among the top five pools were F2Pool、BTC.com、Poolin、AntPool 、Huobi.pool , these 5 pools mined 178、161、138、118 and 92 blocks respectively, accounting for 16.79%、15.19%、13.02%、11.13% and 8.68% of all Bitcoins mined this week. The Hashrate was 24.50EH/s、22.16EH/s、19.00EH/s、16.24EH/s and 12.66EH/s, respectively.

In the past week, Ethereum’s entire network mined 49417 blocks, increased by 3.43% in the previous week. The top five pools were SparkPool, Ethermine, ,F2pool, Zhizhu.top, and Nanopool, each mined 11777、10709、4787、4194 and 2756 blocks respectively, accounting for 23.8319%、21.6707%、9.6869%、8.4870% and 5.5770% of all Ethereum mined this week, respectively.

2.2 Activity Statistics

The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block increased but the average block size of Ethereum decreased this week. According to blockchain.info, from October 12, 2020- October 18, 2020, the average size of each block was 1.03MB, decreased by 20.77% from last week; there were on average 1752 transactions recorded in each block, decreased by 16.05% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 170.1, increased by 5.39%. The average size of each block was 37371.00 bytes, decreased by 0.39% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 580.17%. Number of unconfirmed transactions in Ethereum decreased by 0.45% from the previous week. As of October 18, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 17494, increased by 580.17% from last week. There were 145661.94 unconfirmed transactions in the Ethereum network, decreased by 5.79% from last week, with the lowest amount of unconfirmed transactions in the week being 29512 and the highest amount being 167833.

Total transaction fees of Bitcoin decreased and Ethereum decreased. As of October 18, 2020, average transaction fees of Bitcoin this week was $1.463, decreased by 49.24% from last week. Average transaction fees of Ethereum this week was $0.905, decresead by 44.14%.

The average number of distinct miners per day in Ethereum decreased by 2.24% from last week. From October 12, 2020- October 18, 2020, the average number of distinct miners per day in Ethereum this week was 56.8, decreased by 2.24% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of October 18, 2020, there were 10701 Bitcoin nodes, increased by 0.63% compared to last week, of which 1860 nodes were in the Germany, 1827 nodes were U.S, and 201 nodes were in China(№11), each accounting for 17.38% and 17.07% of the total number of Bitcoin nodes, respectively.

As of October 18, 2020, there were 8754 Ethereum nodes, increased by 2.02% from the previous week. Specifically, there were 2289 nodes in the U.S, 1321 nodes in China, and 952 nodes in Germany, each accounting for 26.15%, 15.09%, 10.88% 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 18, 2020, the total number of Bitcoin addresses was 55030303 increased by 359307 (0.66%).

BCH was the most active project on GitHub this week. From October 12, 2020 — October 18, 2020, Bitcoin Cash was the active project repository on GitHub with a total of 49 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 , 973k, and 539k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Agriculture giants team up on blockchain platform to track grains in Brazil

The world’s largest grains and oilseeds companies, American giants Bunge and Cargill, have joined together to create the joint venture Covantis, which will use blockchain technology in the agricultural sector in Brazil.The unprecedented project foresees the exchange of information between all members of Covantis, which also includes the participation of other agribusiness giants such as the French Louis Dreyfus Company (LDC), the Chinese state-owned company Cofco International and the Dutch multinational Glencore Agriculture.Together the companies that make up Covantis move around 550 million tons of grains and oilseeds every year.The goal of the partnership is to unify the sector’s data and facilitate communication between all participants, improving the logistics processes at the ports, among other things, all using blockchain. The official platform is expected to be launched next year.

2. IBM blockchain powers new app to help firms reopen amid pandemic

A new application powered by the IBM blockchain aims to help people around the world return to physical encounters amid the coronavirus pandemic.IBM Watson Health, a healthcare-focused arm of tech giant IBM, is launching IBM Digital Health Pass, a blockchain-based app to support global organizations and companies as they start reopening after months of lockdown.IBM Watson stated that the new app can deploy multiple data types like COVID-19 test results and onsite temperature scans to generate a verified health status. With the opportunity to verify health status via the app, individuals can safely access public locations like a sports stadium, airplanes, museums or amusement parks, IBM’s representatives said.Eric Piscini, vice president of the blockchain division at IBM Watson Health, emphasized that IBM Digital Health Pass is designed to support privacy as its core feature. According to the executive, the app will allow users to share their verified health pass without exposing any of the underlying data used to generate it.

3. Germany looks to blockchain to help decentralize their energy economy

The Deutsche Energie-Agentur, also known as DENA — the main governmental group responsible for energy innovation in Germany — is looking to move its energy ecosystem to a decentralized database.“When infrastructure can’t go down — when the lights need to stay on — the systems you use need to be resilient, and decentralized technologies deliver that.” Parity Technologies head of public affairs, Peter Mauric said. Mauric added: “The concept of microgrids — smaller, decentralized energy grids to improve resiliency energy generation, storage and distribution — have been a focus for the energy industry for years.” The project will enable energy assets in Germany, such as thermostats, solar PV systems, batteries, and electric vehicle charging stations to undertake automatic registration with a decentralized ledger of identities, allowing their utilisation by the German grid for a range of services such as virtual power plants and frequency regulation.

3.2 International Policies

1. Korean blockchain lobby calls for crypto tax plan to be put on ice

The Korea Blockchain Association has called for the government’s new 20% crypto trading tax plan to be delayed for another two years.According to an Oct. 14 report from News1 Korea, the Korea Blockchain Association, or KBA, is requesting regulators postpone the South Korean government’s implementation of its long awaited new tax strategy until Jan. 1, 2023.The KBA doesn’t explicitly state it is against the 20% tax rate but said that crypto exchanges and companies in the industry need a “reasonable period” to prepare for the Income Tax Act.One of KBA’s reasons for the delay is due to a short window between regulations applying to the old tax scheme and the start of the new one. Under the new tax plan, gains made from virtual currencies and intangible assets will be classified as taxable income, calculated annually. Income from virtual assets below $2,000 per year falls below the minimum threshold and will not be taxed. Any income generated from cryptocurrency trading above this threshold, however, will be taxed at a set rate of 20%.

2. The Bahamas central bank wants to make its digital ‘Sand Dollar’ global

The Central Bank of The Bahamas, or CBOB, is planning to make its central bank digital currency project interoperable on an international level.Bobby Chen, the CBOB’s assistant manager of electronic solutions, claimed that The Bahamas’ digital currency — dubbed the “Sand Dollar” — should eventually be interoperable with other global currencies, local news agency the Nassau Guardian reported on Oct. 15.Chen said, “At the moment, it is currently only used in a domestic setting, but eventually we are working on a solution that will make it interoperable with other global currencies.”Cleopatra Davis, head of banking at the CBOB, also said that the Sand Dollar’s interoperability with other wallets is a key strategy alongside integrating real-time gross settlement and Automated Clearing House. According to Davis, this will enable the movement of the Sand Dollar to and from user bank accounts, which will further facilitate fiat conversions.

3. Bank of Japan to begin digital currency proof-of-concept in 2021

The Bank for International Settlements (BIS), in collaboration with a group of seven central banks, published its first joint report into central bank digital currencies on Oct. 9, focusing on the foundational principles and core features of CBDCs.Alongside the report, the Bank of Japan, one of the members of the group, released a document outlining its own specific approach to CBDCs from a Japan-centric perspective.According to the BoJ report, it will begin the first of several testing phases for its own CBDC sometime in 2021. This will include the development of a test environment for the currency and experiments on its basement functions as a payment instrument.The BoJ report notes that a core feature of the digital currency must be resilience in the face of infrastructure disrupted by forces Majeure, stating:”Offline use in times of system and network failures as well as electrical outages is also important for Japan, given the frequent occurrence of natural disasters.”

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Archax got 8 million dollars in seed investment from Alameda Research,Amnis Ventures,Hudson Capital etc., Boardroom got angel investment from tandard Crypto leading.

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