Huobi Research Weekly (Vol.141) (2020.11.16–2020.11.22)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 16.62%, with 87 projects increased in value to varying degrees. According to coinmarketcap, as of November 22, 2020, the total market cap of cryptocurrencies was 530.6 billion U.S. dollars, increased of 16.62%, and the total market cap of the top 100 cryptocurrencies was 524.9 billion U.S. dollars, increased by 17.37% from last week. 5 cryptocurrency projects entered the top 100 this week, namely HOT、SNT、BCD、BAL and PNK. As of November 22, 2020, Bitcoin was traded at 18370.00USD, 15.21% higher than its price last week. Ethereum was traded at 558.07USD, 24.80% 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 and 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. LINK was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 133.0EH/s, increased by 5.06% from the previous week.Average Hashrate for the entire Ethereum network was 271.78TH/s this week, increased by 2.25%. Average difficulty for mining Bitcoin this week was 17.59T, increased by 4.83% from last week. The average difficulty of mining Ethereum this week was 3441.28TH, increased by 2.10% from that of previous week.

In network activity, the average size of each block was 1.15MB, decreased by 10.85% from last week; there were on average 1841 transactions recorded in each block, decreased by 4.41% from the previous week. The average number of transactions per block in Ethereum this week was 173.0, increased by 1.94%. The average size of each block was 38802.42 bytes, increased by 2.23% compared to last week. Average transaction fees of Bitcoin this week was $2.821, decreased by 18.75% from last week. Average transaction fees of Ethereum this week was $2.266, incresead by 86.35%. The total number of Bitcoin addresses was 59093963 increased by 1189700 (2.05%). Chainlink was the most active project on GitHub this week, with 48 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, Alpaca City got strategic investment from BK Capital, Axie Infinity got 0.86 million dollars in strategic investment from Delphi Digital.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 16.62%, with 87 projects increased in value to varying degrees. According to coinmarketcap, as of November 22, 2020, the total market cap of cryptocurrencies was 530.6 billion U.S. dollars, increased of 16.62%, and the total market cap of the top 100 cryptocurrencies was 524.9 billion U.S. dollars, increased by 17.37% from last week, among which, PNK had the largest increased of 628.54%, bringing its market cap ranking from №173 to №57, NEAR had the largest decreased of -18.40%, bringing its market cap ranking from №57 to №67. In addition, there were 5 projects that entered TOP100, namely, BCD (Bitcoin Diamond, increased 20.88%, Now №95), Holo (HOT, increased 20.95%, Now №97),Balancer (BAL, increased 33.59%, Now №91),Status (SNT, increased 34.01%, Now №92),Kleros (PNK, increased 628.54%, Now №57). As of November 22, 2020, Bitcoin was traded at 18370.00USD, 15.21% higher than its price last week. Ethereum was traded at 558.07USD, 24.80% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 127.57% compared with the same period of last week. In this week,87 of the top 100 projects increased in 24h trading volume, led by SNT with a weekly increase of 1356.51%; there were 13 projects decreased in their 24h trading volume, there were 9 projects that saw over 20% decrease in their 24h trading volume, while 1 projects fell by more than 50%, led by RUNE, with a decreased of -62.34%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On November 22, 2020, the overall market cap of the top 10 cryptocurrencies was 472.8 billion USD, increased by 17.92% from last week, accounting for 89.11% of the total market capitalization of cryptocurrencies, increased by 0.99% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 64.23%, decreased by 0.78% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Application Project got the largest increase. The average market cap of Application Project got the largest increase. As of November 22, 2020, the total market cap of coin projects reached 379.2 billion USD, increased by 15.41%. The average market cap of coin projects reached 8.24 billion USD, increased by 10.39%. The total market cap of platform projects reached 85.0 billion USD, increased by 23.25%. The average market cap of platform projects reached 3.14 billion USD, increased by 23.25%. The total market cap of application class projects reached 41.6 billion USD, increased by 33.97%. The average market cap of application class projects reached 1.73 billion USD, increased by 39.55%. The total market cap of asset-backed token projects reached 19.0 billion USD, increased by 2.53%. The average market cap of asset-backed token projects reached 6.34 billion USD, increased by 36.71%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 22,2020, among the top 100 projects, the number of coin class projects increase 2, application class projects decrease 1, platform class projects remain the same and asset-backed token class decrease 1.The largest overall market cap by segment was still coin projects, accounting for 72.24% 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 November 16, 2020- November 22, 2020, the average bitcoin Hashrate for the entire network reached 133.0EH/s, increased by 5.06% from the previous week.

Average Hashrate for the entire Ethereum network was 271.78TH/s this week, increased by 2.25%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of November 22, 2020, average difficulty for mining Bitcoin this week was 17.59T, increased by 4.83% from last week. The average difficulty of mining Ethereum this week was 3441.28TH, increased by 2.10% from that of previous week.

The number of blocks in Bitcoin increased by 5.44%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.30%. In the past week, Bitcoin mined 1124 blocks, increased by 5.44% from the previous week. Among the top five pools were F2Pool、Poolin、Binance Pool、Huobi Pool、BTC.com, these 5 pools mined 227、136、122、119 and 118 blocks respectively, accounting for 20.20%、12.10%、10.85%、10.59% and 10.50% of all Bitcoins mined this week. The Hashrate was 28.14EH/s、16.86EH/s、15.12EH/s、14.75EH/s and 14.63EH/s, respectively.

In the past week, Ethereum’s entire network mined 48730 blocks, increased by 0.30% in the previous week. The top five pools were SparkPool, Ethermine, Zhizhu.top, F2pool, and Nanopool, each mined 12146、10600、4447、4250 and 2643 blocks respectively, accounting for 24.9251%、21.7525%、9.1258%、8.7215% and 5.4238% 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 and the average block size of Ethereum increased this week. According to blockchain.info, from November 16, 2020- November 22, 2020, the average size of each block was 1.15MB, decreased by 10.85% from last week; there were on average 1841 transactions recorded in each block, decreased by 4.41% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 173.0, increased by 1.94%. The average size of each block was 38802.42 bytes, increased by 2.23% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 59.43%. Number of unconfirmed transactions in Ethereum increased by 11.27% from the previous week. As of November 22, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 1947, decreased by 59.43% from last week. There were 144699.54 unconfirmed transactions in the Ethereum network, increased by 11.27% from last week, with the lowest amount of unconfirmed transactions in the week being 66504 and the highest amount being 160442.

Total transaction fees of Bitcoin decreased but Ethereum increased. As of November 22, 2020, average transaction fees of Bitcoin this week was $2.821, decreased by 18.75% from last week. Average transaction fees of Ethereum this week was $2.266, incresead by 86.35%.

The average number of distinct miners per day in Ethereum increased. From November 16, 2020- November 22, 2020, the average number of distinct miners per day in Ethereum this week was 61.0, increased by 1.50% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of November 22, 2020, there were 11296 Bitcoin nodes, increased by 9.03% compared to last week, of which 1864 nodes were in the U.S, 1705 nodes were Germany, and 207 nodes were in China(№11), each accounting for 16.50% and 15.09% of the total number of Bitcoin nodes, respectively.

As of November 22, 2020, there were 9644 Ethereum nodes, increased by 15.82% from the previous week. Specifically, there were 2517 nodes in the U.S, 1290 nodes in China, and 1262 nodes in Germany, each accounting for 26.10%, 13.38%, 13.09% 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 22, 2020, the total number of Bitcoin addresses was 59093963 increased by 1189700 (2.05%).

LINK was the most active project on GitHub this week. From November 16, 2020 — November 22, 2020, Chainlink was the active project repository on GitHub with a total of 48 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 952k, 626k and 179k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 979k, and 543k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Blockchain-based ecosystem to decentralize banking services globally

A new blockchain-based payment system is aiming to create infrastructure that will digitize banking like never before — bringing together banks, regulators and consumers.Cryptoenter says its goal is to blur the lines between fiat and crypto. The platform will deliver services that take inspiration from DeFi, all while providing levels of reliability that traditional banks have become renowned for.The ecosystem has been in development for the past two-and-a-half years. It has been built by Smart Block Laboratory, which became a registered business partner with IBM back in 2017. A year later, the company was recognized as a silver member of the Linux Foundation — and it has also been accepted by Hyperledger as a general member.Cryptoenter is said to be the first interbank payments service to be based on Hyperledger Fabric in the world.Currently in beta, it’s hoped that the platform will unlock “a new level of interaction between users and banks — as well as between users directly.” All market participants will also be given access to new financial instruments, effectively paving the way for consumers and businesses to quickly launch their own digital coins if they so wish or take part in coin staking.

2. Dell-owned VMware launches enterprise-focused blockchain

Major cloud computing and virtual machine firm VMware has launched VMware Blockchain, an enterprise-ready blockchain platform.Owned by Dell, the billion-dollar company first teased the blockchain’s development in 2018 through its Project Concord, promising an enterprise-grade platform that can enable secure inter-organization data sharing.VMware joins the ranks of IBM and other global tech conglomerates that have launched their own blockchain platforms. The firm identified highly complex and fragmented multi-party enterprise workflows that resulting in delays, increased costs and hindered innovation as core problems they aim to solve with its blockchain solution. International fintech firm Broadridge Financial Solutions is using VMware’s solution to develop “blockchain-based solutions to transform capital market’s infrastructure” according to the Head of DLT Repo for Broadridge, Horacio Barakat. He added that the platform enabled the company “to model and enforce multi-party agreements on a Scalable Byzantine Fault Tolerant platform.”

3. Vietnam’s ministry of education to record certifications on blockchain

Vietnam’s Ministry of Education and Training, or MOET, is planning to implement blockchain technology for issuing diplomas in 2021.According to a Nov. 18 announcement, the ministry has partnered with Singapore-based startup TomoChain to put national student certifications on TomoChain’s proprietary blockchain platform.As part of the “National Qualifications Archive” project, the MOET plans to issue all types of diplomas granted by its high school and higher education training units on the blockchain. The new system will reportedly come into effect during the school year ending in 2021.According to the announcement, Vietnam’s new blockchain-based certification system is designed to enable transparent and immutable verification of student qualifications. The new system is expected to replace long-lasting verification processes by recruitment agencies and HR units. Nguyen Van Phuc, deputy minister at the MOET, said:“Diploma and certificate management is an issue that needs to be resolved by technology, which is significant for the whole of society and also cost-efficient for the diploma management system in particular, and education in general.”

3.2 International Policies

1. Japan’s megabanks to lead experiment with digital yen

Japan’s three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen. The group consists of banks, various Japanese brokerages, utility and telecom firms and retailers, according to a Reuters report published on Nov. 19.For the purposes of the experiment, the private banks will be responsible for issuing the currency, although the prospect of other actors becoming involved in issuance has not been ruled out, according to the chair of the new group, Hiromi Yamaoka. Yamaoka is a former executive at Japan’s central bank, which itself has been increasingly vocal on the question of the digital yen’s development in recent months. Japan’s leading banks, Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group have all developed individual digital payments systems before, including digital tokens.The idea of the new project, however, is to avoid a “silo-type” platform and fragmented digital payments landscape. Yamaoka said:“Japan has many digital platforms, none of which are big enough to beat cash payments. What we want to do is to create a framework that can make various platforms mutually compatible.”

2. Kyrgyzstan’s central bank developing draft law for cryptocurrency industry

The central bank for the Central Asian country of Kyrgyzstan is working on a draft law to regulate the cryptocurrency industry in the country.According to an announcement on Nov. 13, the National Bank of the Kyrgyz Republic is developing a draft law that would regulate cryptocurrency exchanges in consultation with industry stakeholders.The bank stated that the draft law would regulate the sale and purchase of cryptocurrencies with the aim of tackling fraudulent cryptocurrency schemes and financial crimes, as well as safeguarding consumer and investor rights.Among the expected benefits of the forthcoming regulations, the bank notes the improved development of digital financial products, favorable conditions for the business community and even the possible introduction of a formal tax regime for digital assets.However, the bank also expects crypto legislation to come with its own share of obstacles, stating that the cross-border nature of many private cryptocurrencies will make the law difficult to enforce without the proper infrastructure for monitoring and implementation.

3. Belarus’ largest bank reportedly launches crypto exchange service

Belarusbank, the largest financial institution in Belarus, is reportedly launching a cryptocurrency exchange service.According to a Nov. 12 report by local news agency Prime Press, Belarusbank is rolling out a service allowing users to exchange cryptocurrency using a Visa payment card. As reported, the new service enables trading crypto against fiat currencies like the Belarusian ruble as well as the United States dollar and the euro.Belarusbank executives reportedly said that the launch of the new crypto service comes in line with the company’s digital transformation program that was announced a few years ago.The new service is reportedly available to citizens of Belarus and Russia. The bank is also planning to extend the list of countries supporting the service as well as the list of supported cryptocurrencies in the near future, the report notes.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Alpaca City got strategic investment from BK Capital, Axie Infinity got 0.86 million dollars in strategic investment from Delphi 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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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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