Huobi Research Weekly (Vol.138) (2020.10.26–2020.11.1)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 2.07%, with 18 projects increased in value to varying degrees. According to coinmarketcap, as of November 1, 2020, the total market cap of cryptocurrencies was 404.5 billion U.S. dollars, increased of 2.07%, and the total market cap of the top 100 cryptocurrencies was 394.5 billion U.S. dollars, increased by 2.02% from last week. 4 cryptocurrency projects entered the top 100 this week, namely CVT、BTM、VLX and NEXO. As of November 1,2020, Bitcoin was traded at 13737.11USD, 5.44% higher than its price last week. Ethereum was traded at 396.36USD, 2.35% lower than its price last week.

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

The average bitcoin Hashrate for the entire network reached 113.2EH/s, decreased by 15.21% from the previous week.Average Hashrate for the entire Ethereum network was 263.00TH/s this week, decreased by 0.42%. Average difficulty for mining Bitcoin this week was 19.99T, as same as last week. The average difficulty of mining Ethereum this week was 3333.17TH, decreased by 0.20% from that of previous week.

In network activity, the average size of each block was 1.28MB, decreased by 4.48% from last week; there were on average 2441 transactions recorded in each block, increased by 20.96% from the previous week. The average number of transactions per block in Ethereum this week was 166.2, decreased by 1.71%. The average size of each block was 37777.00 bytes, increased by 1.10% compared to last week. Average transaction fees of Bitcoin this week was $13.157, increased by 230.00% from last week. Average transaction fees of Ethereum this week was $1.063, incresead by 15.42%. The total number of Bitcoin addresses was 55684405 increased by 319435 (0.58%). Chainlink was the most active project on GitHub this week, with 65 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, Litentry got million of dollars in seed investment from FBG Capital,Candaq Group etc., Figment Networks got 2.5 million dollars in A round investment from Bonfire Ventures,FJ Labs etc.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 2.07%, with 18 projects increased in value to varying degrees. According to coinmarketcap, as of November 1, 2020, the total market cap of cryptocurrencies was 404.5 billion U.S. dollars, increased of 2.07%, and the total market cap of the top 100 cryptocurrencies was 394.5 billion U.S. dollars, increased by 2.02% from last week, among which, NEXO had the largest increased of 22.49%, bringing its market cap ranking from №110 to №89, ABBC had the largest decreased of -37.23%, bringing its market cap ranking from №42 to №58. In addition, there were 4 projects that entered TOP100, namely, BTM (Bytom, decreased 3.73%, Now №99), CVT (CyberVein, increased 3.16%, Now №78), VLX (Velas, increased 11.04%, Now №95), NEXO (Nexo, increased 22.49%, Now №89). As of November 1,2020, Bitcoin was traded at 13737.11USD, 5.44% higher than its price last week. Ethereum was traded at 396.36USD, 2.35% lower than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 9.01% compared with the same period of last week. In this week, 26 of the top 100 projects increased in 24h trading volume, led by CVT with a weekly increase of 47622.85%; there were 74 projects decreased in their 24h trading volume, there were 33 projects that saw over 20% decrease in their 24h trading volume, while 15 projects fell by more than 50%, led by MONA, with a decreased of -79.43%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On November 1, 2020, the overall market cap of the top 10 cryptocurrencies was 350.8 billion USD, increased by 3.15% from last week, accounting for 86.73% of the total market capitalization of cryptocurrencies, increased by 0.91% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 62.92%, increased by 2.02% 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 November 1, 2020, the total market cap of coin projects reached 286.3 billion USD, increased by 4.17%. The average market cap of coin projects reached 6.36 billion USD, increased by 6.48%. The total market cap of platform projects reached 61.6 billion USD, decreased by 3.56%. The average market cap of platform projects reached 2.28 billion USD, decreased by 3.56%. The total market cap of application class projects reached 29.2 billion USD, decreased by 5.57%. The average market cap of application class projects reached 1.21 billion USD, decreased by 9.51%. The total market cap of asset-backed token projects reached 17.3 billion USD, increased by 2.06%. The average market cap of asset-backed token projects reached 4.32 billion USD, increased by 2.06%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 1,2020, among the top 100 projects, the number of coin class projects decrease 1, application class projects increase 1, 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 72.58% 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 and Ethereum decreased by this week. From October 26, 2020- November 1, 2020, the average bitcoin Hashrate for the entire network reached 113.2EH/s, decreased by 15.21% from the previous week.

Average Hashrate for the entire Ethereum network was 263.00TH/s this week, decreased by 0.42%.

This week, the difficulty of mining Bitcoin not changed and Ethereum decreased. As of November 1, 2020, average difficulty for mining Bitcoin this week was 19.99T, as same as last week. The average difficulty of mining Ethereum this week was 3333.17TH, decreased by 0.20% from that of previous week.

The number of blocks in Bitcoin decreased by 18.05%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks increased by 1.15%. In the past week, Bitcoin mined 763 blocks, decreased by 18.05% from the previous week. Among the top five pools were F2Pool、BTC.com、Poolin、Huobi.pool 、AntPool , these 5 pools mined 115、100、99、83 and 80 blocks respectively, accounting for 15.07%、13.11%、12.98%、10.88% and 10.48% of all Bitcoins mined this week. The Hashrate was 16.28EH/s、14.16EH/s、14.02EH/s、11.75EH/s and 11.33EH/s, respectively.

In the past week, Ethereum’s entire network mined 49447 blocks, increased by 1.15% in the previous week. The top five pools were SparkPool, Ethermine, Zhizhu.top, F2pool, and Nanopool, each mined 12249、10915、4589、4359 and 2725 blocks respectively, accounting for 24.7720%、22.0741%、9.2806%、8.8155% and 5.5110% 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 decreased but the average block size of Ethereum increased this week. According to blockchain.info, from October 26, 2020- November 1, 2020, the average size of each block was 1.28MB, decreased by 4.48% from last week; there were on average 2441 transactions recorded in each block, increased by 20.96% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 166.2, decreased by 1.71%. The average size of each block was 37777.00 bytes, increased by 1.10% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 411.03%. Number of unconfirmed transactions in Ethereum decreased by 3.39% from the previous week. As of November 1, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 57869, increased by 411.03% from last week. There were 148581.87 unconfirmed transactions in the Ethereum network, decreased by 3.39% from last week, with the lowest amount of unconfirmed transactions in the week being 88662 and the highest amount being 170541.

Total transaction fees of Bitcoin increased and Ethereum increased. As of November 1, 2020, average transaction fees of Bitcoin this week was $13.157, increased by 230.00% from last week. Average transaction fees of Ethereum this week was $1.063, incresead by 15.42%.

The average number of distinct miners per day in Ethereum increased by 5.54% from last week. From October 26, 2020- November 1, 2020, the average number of distinct miners per day in Ethereum this week was 59.1, increased by 5.54% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of November 1, 2020, there were 11110 Bitcoin nodes, increased by 1.01% compared to last week, of which 1893 nodes were in the Germany, 1831 nodes were U.S, and 189 nodes were in China(№11), each accounting for 17.04% and 16.48% of the total number of Bitcoin nodes, respectively.

As of November 1, 2020, there were 8999 Ethereum nodes, decreased by 0.10% from the previous week. Specifically, there were 2273 nodes in the U.S, 1378 nodes in China, and 983 nodes in Germany, each accounting for 25.26%, 15.31%, 10.93% 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 November 1, 2020, the total number of Bitcoin addresses was 55684405 increased by 319435 (0.58%).

LINK was the most active project on GitHub this week. From October 26, 2020 — November 1, 2020, Chainlink was the active project repository on GitHub with a total of 65 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 953k, 626k and 178k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 975k, and 540k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. ‘Game changing’ blockchain program tracks mangoes in Australia

Following a 2.5 year-long pilot program, an Australia mango producer is scaling up its use of blockchain technology for supply chain traceability.According to the Cooperative Research Centre for Developing Northern Australia, or CRCNA, the organization partnered with leading Australian mango producer Manbulloo and traceability software company Trust Provenance to test a supply chain management program across their supply chain and distribution centers in Queensland and the Northern Territory. The project, which kicked off in 2018, employs sensors placed in mango crates to track the movement of the sweet fruit in addition to monitoring its temperature, humidity, and transit time. Trust Provenance founder Andrew Grant said the scaled up system will improve the distribution of mangoes across the country by reducing waste and seeing exactly where in the supply chain any inefficiencies lie. The CRCNA raised more than $827,000 for the 2.5 year-old testing phase, which began in April 2018.

2. Seven firms in Japan deploy blockchain to digitize trade paperwork

According to an Oct. 26 report by Japanese news agency The Nikkei, seven Japanese companies are preparing to invest in a new trade data management system. Reportedly developed by NTT Data, the platform uses blockchain technology to prevent malicious third-parties from tampering with recorded data.The platform is designed to manage receipts for exporting and importing companies and will also manage letters of credit issued by banks. The new service will also help to process other related documents handled by insurance and logistics companies.As reported, the participating companies include a major Japanese bank, MUFG Bank, Toyota Tsusho, Kanematsu, Sompo Japan Insurance and Tokio Marine & Nichido Fire Insurance.According to Nikkei, the companies are expecting to launch the new service by the end of the current fiscal year. It seems that the service has already been piloted by firms like Mitsubishi, and has reportedly reduced the time required for data processing by 50%.

3. Commodity trading gets sweeter with blockchain-based sugar exchange

The world’s largest sugar refinery, Al Khaleej Sugar, officially announced the application of blockchain technology in its recently launched sugar trading platform, DigitalSugar.io.Users of the UAE-based platform will trade the spot price of sugar via tokens tied to “up to 100,000 tonnes of raw sugar,” with its peg assured by the Universa blockchain who will be issuing electronic warrants of ownership with the tokens. Traders will be able to hold tokens representing between 1 kg to 1M tonnes, and will pay .4% in exchange fees as well as a 2.5% yearly storage fee.The platform, launched in partnership with the flagship Free Zone and Government of Dubai Authority on commodities trade (DMCC) and Universa Blockchain, will be the first global exchange to offer traders and investors raw spot sugar trades on an immediate basis, rather than the more common options or futures offered by other current exchanges.Jamal Al Ghurair, Managing Director, Al Khaleej Sugar, said that the launch of a blockchain-based sugar trading platform is in line with the wider goals of UAE Blockchain Strategy 2021, which Highness Sheikh Mohammed bin Rashid, Vice President and Prime Minister of the UAE and Ruler of Dubai, launched in 2018.

3.2 International Policies

1. Cambodia launches inter-banking platform that runs on blockchain

Amid a global race toward central bank digital currencies, or CBDCs, Cambodia officially launched a blockchain-based platform for digital money transactions called Bakong. “Bakong, a payment and money transfer service through banks or microfinance institutions, was established under the initiative of the National Bank of Cambodia,” said an article from Dap-News on Oct. 28. The Asian country’s central bank collaborated with a number of entities on the project. “Bakong is a new and modern payment tool that allows customers to make interbank transactions and bill payments easily, quickly, securely and free of charge,” PRASAC’s executive vice-president, Sony Say, said, as quoted by Dap-News.”I hope the official launch of the Bakong System today will help promote social welfare and also prevent the spread of [Covid-19] by providing seamless e-payments from person to person,”

2. Malaysian Securities Commission issues revised digital asset guidelines

The Securities Commission Malaysia has issued revised guidelines governing digital assets, effective as of Oct. 28. These are intended to regulate initial exchange offerings, or IEOs, and digital asset custodians.According to the SCM, the rules aim to promote “responsible innovation in the digital asset space, while at the same time managing emerging risks and safeguarding the interests of issuers and investors.”As reported, the SCM first published a regulatory guide for IEOs back in January. This laid out rules which enabled companies to raise funds via token issuance only through an approved and registered digital asset exchange, but was not due to come into force until late 2020.The issuance of these revised guidelines coincides with their enforcement and adds a requirement for IEO platforms to conduct due diligence on the issuer. This includes a responsibility to assess the issuer’s ability to comply with local guidelines on preventing money laundering and the funding of terrorism.The guidelines also cover rules for companies wishing to provide custody services for digital assets. Applications for registration as either an IEO provider or a DAC are now being accepted.

3. Indian bank to offer crypto services across its 34 branches

Indian bank United Multistate Credit Co. Operative Society is planning to expand its banking services to cryptocurrencies and cryptocurrency products.In collaboration with the crypto banking service provider Cashaa, United has established a joint venture dubbed UNICAS that aims to provide both online crypto banking services and walk-in services across its 34 physical branches in northern India. UNICAS will allow United account holders to integrate cryptocurrency wallets directly with their accounts. Customers will also be able to directly buy Bitcoin (BTC), Ether (ETH), Ripple (XRP) and Cashaa (CAS) by paying either in cash or directly from their account. When UNICAS launches, United will also allow its customers to take out loans against cryptocurrencies. Kumar Gaurav, the chief executive of Cashaa, said that the increased interest in cryptocurrencies was a major reason for them to integrate cryptos into the legacy banking system. He said that UNICAS will help disseminate reliable information about cryptocurrencies to the mainstream Indian population and help further the adoption of cryptos in India. He also said that the addition of cryptocurrency services to a traditional bank will help India adopt a more digitized payment system.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Litentry got million of dollars in seed investment from FBG Capital,Candaq Group etc., Figment Networks got 2.5 million dollars in A round investment from Bonfire Ventures,FJ Labs etc.

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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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