Huobi Research Weekly (Vol.142) (2020.11.23–2020.11.29)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.33%, with 64 projects increased in value to varying degrees. According to coinmarketcap, as of November 29, 2020, the total market cap of cryptocurrencies was 553.5 billion U.S. dollars, increased of 4.33%, and the total market cap of the top 100 cryptocurrencies was 535.5 billion U.S. dollars, increased by 2.03% from last week. 5 cryptocurrency projects entered the top 100 this week, namely HEDG、OXT、XVT、CVT and ZEN. As of November 29, 2020, Bitcoin was traded at 18177.48USD, 1.01% lower than its price last week. Ethereum was traded at 575.76USD, 3.26% higher than its price last week.

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

The average bitcoin Hashrate for the entire network reached 135.6EH/s, increased by 1.95% from the previous week.Average Hashrate for the entire Ethereum network was 277.11TH/s this week, increased by 1.96%. Average difficulty for mining Bitcoin this week was 17.59T, as same as last week. The average difficulty of mining Ethereum this week was 3512.66TH, increased by 2.07% from that of previous week.

In network activity, the average size of each block was 1.32MB, increased by 14.78% from last week; there were on average 1909 transactions recorded in each block, increased by 3.69% from the previous week. The average number of transactions per block in Ethereum this week was 177.3, increased by 2.49%. The average size of each block was 39793.71 bytes, increased by 2.55% compared to last week. Average transaction fees of Bitcoin this week was $3.349, increased by 18.72% from last week. Average transaction fees of Ethereum this week was $1.188, decresead by 47.57%. The total number of Bitcoin addresses was 60131510, increased by 1037547 (1.76%).Lisk was the most active project on GitHub this week, with 45 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, KODA got strategic investment from KB Investment, Kylin Network got seed round investment from DigiStrats,SigNumCapital,PNYXVentures etc.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 4.33%, with 64 projects increased in value to varying degrees. According to coinmarketcap, as of November 29, 2020, the total market cap of cryptocurrencies was 553.5 billion U.S. dollars, increased of 4.33%, and the total market cap of the top 100 cryptocurrencies was 535.5 billion U.S. dollars, increased by 2.03% from last week, among which, REV had the largest increased of 601.32%, bringing its market cap ranking from №89 to №30, NXM had the largest decreased of -22.21%, bringing its market cap ranking from №80 to №95. In addition, there were 5 projects that entered TOP100, namely, CVT (CyberVein, increased 2.28%, Now №99), OXT (Orchid,increased 24.71%, Now №94),XVG (Verge, increased 39.12%, Now №96),ZEN (Horizen, increased 52.24%, Now №85),HEDG (HedgeTrade, increased 87.19%, Now №63). As of November 29, 2020, Bitcoin was traded at 18177.48USD, 1.01% lower than its price last week. Ethereum was traded at 575.76USD, 3.26% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 29.35% compared with the same period of last week. In this week, 14 of the top 100 projects increased in 24h trading volume, led by HEDG with a weekly increase of 928.98%; there were 86 projects decreased in their 24h trading volume, there were 68 projects that saw over 20% decrease in their 24h trading volume, while 24 projects fell by more than 50%, led by ANT, with a decreased of -83.92%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On November 29, 2020, the overall market cap of the top 10 cryptocurrencies was 479.2 billion USD, increased by 1.36% from last week, accounting for 86.57% of the total market capitalization of cryptocurrencies, decreased by 2.54% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 60.94%, decreased by 3.29% 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 29, 2020, the total market cap of coin projects reached 375.8 billion USD, decreased by 0.89%. The average market cap of coin projects reached 8.35 billion USD, increased by 1.31%. The total market cap of platform projects reached 88.2 billion USD, increased by 3.76%. The average market cap of platform projects reached 3.39 billion USD, increased by 7.76%. The total market cap of application class projects reached 51.8 billion USD, increased by 24.39%. The average market cap of application class projects reached 1.99 billion USD, increased by 14.83%. The total market cap of asset-backed token projects reached 19.6 billion USD, increased by 3.46%. The average market cap of asset-backed token projects reached 6.56 billion USD, increased by 3.46%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 29,2020, among the top 100 projects, the number of coin class projects decrease 1, application class projects increase 2, platform class projects decrease 1 and asset-backed token class remain the same.The largest overall market cap by segment was still coin projects, accounting for 70.17% 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 23, 2020- November 29, 2020, the average bitcoin Hashrate for the entire network reached 135.6EH/s, increased by 1.95% from the previous week.

Average Hashrate for the entire Ethereum network was 277.11TH/s this week, increased by 1.96%.

This week, the difficulty of mining Bitcoin not changed and Ethereum increased. As of November 29, 2020, average difficulty for mining Bitcoin this week was 17.59T, as same as last week. The average difficulty of mining Ethereum this week was 3512.66TH, increased by 2.07% from that of previous week.

The number of blocks in Bitcoin decreased by 5.69%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks decreased by 0.21%. In the past week, Bitcoin mined 1060 blocks, decreased by 5.69% from the previous week. Among the top five pools were F2Pool、Poolin、Binance Pool、Ant Pool、Huobi Pool, these 5 pools mined 214、141、122、106 and 100 blocks respectively, accounting for 20.19%、13.30%、11.51%、10.00% and 9.43% of all Bitcoins mined this week. The Hashrate was 26.71EH/s、17.60EH/s、15.23EH/s、13.23EH/s and 12.48EH/s, respectively.

In the past week, Ethereum’s entire network mined 48627 blocks, decreased by 0.21 in the previous week. The top five pools were SparkPool, Ethermine, Zhizhu.top, F2pool, and Nanopool, each mined 12493、10679、4419、4292 and 2572 blocks respectively, accounting for 25.6915%、21.9611%、9.0875%、8.8264% and 5.2892% of all Ethereum mined this week, respectively.

2.2 Activity Statistics

The average number of transactions per block increased and the average block size of Bitcoin increased. The average number of transactions per block increased and the average block size of Ethereum increased this week. According to blockchain.info, from November 23, 2020- November 29, 2020, the average size of each block was 1.32MB, increased by 14.78% from last week; there were on average 1909 transactions recorded in each block, increased by 3.69% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 177.3, increased by 2.49%. The average size of each block was 39793.71 bytes, increased by 2.55% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 57.27%. Number of unconfirmed transactions in Ethereum increased by 2.42% from the previous week. As of November 29, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 832, decreased by 57.27% from last week. There were 148202.77 unconfirmed transactions in the Ethereum network, increased by 2.42% from last week, with the lowest amount of unconfirmed transactions in the week being 99080 and the highest amount being 167394.

Total transaction fees of Bitcoin increased but Ethereum decreased. As of November 29, 2020, average transaction fees of Bitcoin this week was $3.349, increased by 18.72% from last week. Average transaction fees of Ethereum this week was $1.188, decresead by 47.57%.

The average number of distinct miners per day in Ethereum decreased. From November 23, 2020- November 29, 2020, the average number of distinct miners per day in Ethereum this week was 59.1, decreased by 3.11% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum increased this week. As of November 29, 2020, there were 11409 Bitcoin nodes, increased by 1.00% compared to last week, of which 1948 nodes were in the U.S, 1747 nodes were Germany, and 205 nodes were in China(№11), each accounting for 17.07% and 15.31% of the total number of Bitcoin nodes, respectively.

As of November 29, 2020, there were 11062 Ethereum nodes, increased by 14.70% from the previous week. Specifically, there were 2987 nodes in the U.S, 1570 nodes in Germany, and 1269 nodes in China, each accounting for 27.00%, 14.19%, 11.47% 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 29, 2020, the total number of Bitcoin addresses was 60131510, increased by 1037547 (1.76%).

LSK was the most active project on GitHub this week. From November 23, 2020 — November 29, 2020, Chainlink was the active project repository on GitHub with a total of 45 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 , 986k, and 545k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Australia and Singapore to Trial ‘Paperless’ Trade Using Blockchain Technology

The Australian Border Force (ABF), the country’s customs and border protection agency, wants to simplify cross-border trade with Singapore using blockchain technology.Under the Australia-Singapore Digital Economy Agreement (DEA), a blockchain trial was launched this week in an attempt to make it easier for businesses to digitally exchange trade documentation, per an ABF announcement on Wednesday.In collaboration with Singapore Customs and the Singapore Infocomm Media Development Authority (IMDA), the blockchain trial aims to reduce administration costs and increase trade efficiency. Specifically, it will test digital verification platforms across both the ABF’s intergovernmental ledger and IMDA’s TradeTrust platform for sharing electronic documents, primarily certificates of origin. “This initiative will incorporate paperless trading and secure digital exchange of trade information as part of the future architecture and design of an Australian Trade Single Window,” said ABF Commissioner Michael Outram.

2. Japanese financial giant SBI debuts Bitcoin lending service

Japanese financial giant SBI Group is introducing a cryptocurrency lending service through its crypto-related subsidiary, SBI VC Trade.According to an official announcement on Nov. 24, the new crypto lending platform will allow users to lend their crypto to SBI and earn interest at a rate of 1% with taxes included.The new service, dubbed VC Trade Lending, will initially support the major cryptocurrency Bitcoin (BTC), with SBI further planning to add support for Ether (ETH) and XRP. The minimum lending amount is 0.1 BTC, or $1,840 at publishing time, while the maximum amount is capped at 5 BTC, or $92,000.SBI said that VC Trade Lending will have no account management fees or annual membership fees. The service will also not charge any fees for deposits made in Japanese yen or crypto, but still charges a fee for yen withdrawals.SBI is a major financial institution in Japan involved in the crypto industry.

3. BlockApps launches Ethereum-based Agritech network in collaboration with Bayer

On Nov. 18, blockchain solutions provider BlockApps launched a blockchain-based agricultural crop tracking network called “TraceHarvest” — and one of the largest companies in the world, Bayer, is among its first users. TraceHarvest reportedly provides users with the ability to trace the life cycle of agricultural products starting from the source of seeds, all the way to defining the responsibilities of each party involved in the supply chain. The platform also provides users with information in real-time, ideally mitigating problems associated with manually tracking crops.TraceHarvest is open to all participants in the supply chain such as farmers, dealers, manufacturers, distributors, and technology providers, and also aims to provide farmers with the opportunity to enter new markets and generate additional income.Besides tracking crops, the platform can be used for environmental and consumer protection — for example, carbon offset credits and food safety recalls. Additionally, the company hopes that the data stored on the platform can be used by researchers to make the food supply chain more sustainable.BlockApps collaborated with Bayer Crop Science on this project, a subdivision of German pharma giant Bayer.

3.2 International Policies

1. Russian prime minister proposes legal steps to bring order to crypto market

Russian prime minister Mikhail Mishustin has appeared to express support for the further development of the local cryptocurrency market.At a recent governmental meeting held on Nov. 26, Mishustin proposed the introduction of legal protections for crypto holders in the country in order to contribute to the growth of the new industry.According to Mishustin, such a framework would develop the industry in a “civilized way so that the owners of such assets can protect their rights and interests,” while at the same time preventing “shadow schemes.” As part of the plan, Mishustin proposed amending the Russian Tax Code to recognize cryptocurrencies like Bitcoin (BTC) as property, stating:“Let’s make a number of changes to the Tax Code so digital financial assets can be recognized as property, and their owners will be able to count on legal protection in the event of any illegal actions, as well as to defend their property rights in court.”Mishustin replaced Russia’s former prime minister Dmitry Medvedev in January 2020, whereupon he urged the country to prioritize the development of a digital economy.

2. Nigeria is establishing a framework for widescale crypto adoption

Nigeria’s Federal Ministry of Finance is reportedly in talks with the country’s securities regulator to develop a new framework for blockchain and cryptocurrencies — a move that could accelerate adoption in Africa’s largest economy. Business Day, a Nigerian market intelligence publication, reported Tuesday that the Ministry of Finance is working with the Abuja-based Securities and Exchange Commission, or SEC, to “provide a regulatory environment for blockchain” and digital assets. The publication cites Ministry adviser Amstrong Takang speaking at an industry event in Lagos on Tuesday.Digital assets are recognized as commodities and governed by appropriate securities law in Nigeria following the SEC’s stunning edict on the matter back in September. At the time, the SEC said its role was to regulate this new asset class, not hinder adoption or innovation.According to the SEC Nigeria:“The general objective of regulation is not to hinder technology or stifle innovation, but to create standards that encourage ethical practices that ultimately make for a fair and efficient market.”

3. Crypto Assets in South Africa Would Be Considered Financial Products Under Regulator Proposal

Cryptocurrency assets would be treated like financial products under South Africa’s Financial Advisory and Intermediary Services (FAIS) Act, under a draft declaration by a financial regulator.“The Declaration would have the effect that any person furnishing advice or rendering intermediary services in relation to crypto assets must be authorised under the FAIS Act as a financial services provider, and must comply with the requirements of the FAIS Act,” wrote the Financial Sector Conduct Authority (FSCA), which is seeking comment on the proposal. “This will include crypto asset exchanges and platforms, as well as brokers and advisors.”How each country treats cryptocurrency has major implications for which regulators oversee crypto activities and what licenses companies have to pursue. In January 2019, South Africa’s central bank published a paper saying regulatory action on crypto assets needed to be prioritized to protect consumers. The regulator also said the declaration could improve disclosures about the risks of crypto assets to customers looking to invest. The draft doesn’t impact “the status of crypto assets in the context of other laws such as exchange control regulations, requirements under the Pension Fund Act and Collective Investment Schemes Act and so forth, nor does it attempt to regulate, [legitimize] or give credence to crypto assets,” the regulator wrote.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, KODA got strategic investment from KB Investment, Kylin Network got seed round investment from DigiStrats,SigNumCapital,PNYXVentures etc.

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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3. This report is only for reference purposes. Conclusions and viewpoints in the report do not constitute any form of investment advice on crypto assets. Huobi Research is not responsible for any losses resulting from the use of this report, unless stipulated by law. Under no circumstances should the readers give up their own investment analysis and judgements.

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