Huobi Research Weekly (Vol.143) (2020.11.30–2020.12.6)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 3.21%, with 61 projects increased in value to varying degrees. According to coinmarketcap, as of December 6, 2020, the total market cap of cryptocurrencies was 571.3 billion U.S. dollars, increased of 3.21%, and the total market cap of the top 100 cryptocurrencies was 564.1 billion U.S. dollars, increased by 5.33% from last week. 3 cryptocurrency projects entered the top 100 this week, namely SUSHI、RENBTC and MAID. As of December 6, 2020, Bitcoin was traded at 19345.12USD, 6.46% higher than its price last week. Ethereum was traded at 601.91USD, 4.63% higher than its price last week.

The hashrate of Bitcoin decreased but 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 increased and the average block size of Bitcoin increased. The average number of transactions per block decreased and the average block size of Ethereum decreased this week.The average transaction fees of Bitcoin increased and Ethereum increased. PIVX was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 133.4EH/s, decreased by 1.62% from the previous week.Average Hashrate for the entire Ethereum network was 285.00TH/s this week, increased by 2.84%. Average difficulty for mining Bitcoin this week was 19.15T, increased by 8.87% from last week. The average difficulty of mining Ethereum this week was 3614.84TH, increased by 2.91% from that of previous week.

In network activity, the average size of each block was 1.34MB, increased by 1.52% from last week; there were on average 1962 transactions recorded in each block, increased by 2.78% from the previous week. The average number of transactions per block in Ethereum this week was 169.7, decreased by 4.29%. The average size of each block was 39121.42 bytes, decreased by 1.69% compared to last week. Average transaction fees of Bitcoin this week was $4.685, increased by 39.89% from last week. Average transaction fees of Ethereum this week was $1.482, incresead by 24.75%. The total number of Bitcoin addresses was 60776188, increased by 644678 (1.07%). PIVX was the most active project on GitHub this week, with 57 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, RabbitHole got strategic investment from CollabCurrency leading, Coinsilium got 0.33 million pounds from strategic investment from IOV Labs.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 3.21%, with 61 projects increased in value to varying degrees. According to coinmarketcap, as of December 6, 2020, the total market cap of cryptocurrencies was 571.3 billion U.S. dollars, increased of 3.21%, and the total market cap of the top 100 cryptocurrencies was 564.1 billion U.S. dollars, increased by 5.33% from last week, among which, SUSHI had the largest increased of 61.54%, bringing its market cap ranking from №66 to №51, NMR had the largest decreased of -12.06%, bringing its market cap ranking from №80 to №87. In addition, there were 3 projects that entered TOP100, namely, renBTC (RENBTC, increased 4.06%, Now №56), CHSB (SwissBorg,increased 12.82%, Now №100),MAID (MaidSafeCoin, increased 47.77%, Now №99). As of December 6, 2020, Bitcoin was traded at 19345.12USD, 6.46% higher than its price last week. Ethereum was traded at 601.91USD, 4.63% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 25.02% compared with the same period of last week. In this week, 32 of the top 100 projects increased in 24h trading volume, led by RENBTC with a weekly increase of 4310.84%; there were 68 projects decreased in their 24h trading volume, there were 40 projects that saw over 20% decrease in their 24h trading volume, while 4 projects fell by more than 50%, led by XLM, with a decreased of -58.45%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On December 6, 2020, the overall market cap of the top 10 cryptocurrencies was 505.2 billion USD, increased by 5.43% from last week, accounting for 88.43% of the total market capitalization of cryptocurrencies, increased by 1.86% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 62.85%, increased by 1.85% 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 Platform Project got the largest increase. As of December 6, 2020, the total market cap of coin projects reached 399.5 billion USD, increased by 6.31%. The average market cap of coin projects reached 8.50 billion USD, increased by 1.79%. The total market cap of platform projects reached 92.0 billion USD, increased by 4.33%. The average market cap of platform projects reached 3.68 billion USD, increased by 8.50%. The total market cap of application class projects reached 52.2 billion USD, increased by 0.78%. The average market cap of application class projects reached 2.09 billion USD, increased by 4.81%. The total market cap of asset-backed token projects reached 20.2 billion USD, increased by 2.90%. The average market cap of asset-backed token projects reached 6.75 billion USD, increased by 2.90%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of December 7,2020, among the top 100 projects, the number of coin class projects increase 2, application class projects decrease 1, 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 70.83% 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 but Ethereum increased by this week. From November 30, 2020- December 6, 2020, the average bitcoin Hashrate for the entire network reached 133.4EH/s, decreased by 1.62% from the previous week.

Average Hashrate for the entire Ethereum network was 285.00TH/s this week, increased by 2.84%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of December 6, 2020, average difficulty for mining Bitcoin this week was 19.15T, increased by 8.87% from last week. The average difficulty of mining Ethereum this week was 3614.84TH, increased by 2.91% from that of previous week.

The number of blocks in Bitcoin decreased by 8.40%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks increased by 0.06%. In the past week, Bitcoin mined 971 blocks, decreased by 8.40% from the previous week. Among the top five pools were F2Pool、Poolin、BTC.com、Binance Pool、Ant Pool, these 5 pools mined 176、122、117、107 and 93 blocks respectively, accounting for 18.13%、12.56%、12.05%、11.02% and 9.58% of all Bitcoins mined this week. The Hashrate was 23.99EH/s、16.63EH/s、15.95EH/s、14.59EH/s and 12.68EH/s, respectively.

In the past week, Ethereum’s entire network mined 48657 blocks, increased by 0.06% in the previous week. The top five pools were SparkPool, Ethermine, F2pool,Zhizhu.top, and Nanopool, each mined 12558、10599、4511、4302 and 2551 blocks respectively, accounting for 25.8092%、21.7831%、9.2710%、8.8415% and 5.2428% 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 decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from November 30, 2020- December 6, 2020, the average size of each block was 1.34MB, increased by 1.52% from last week; there were on average 1962 transactions recorded in each block, increased by 2.78% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 169.7, decreased by 4.29%. The average size of each block was 39121.42 bytes, decreased by 1.69% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 746.39%. Number of unconfirmed transactions in Ethereum decreased by 0.52% from the previous week. As of December 6, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 7042, increased by 746.39% from last week. There were 147435.29 unconfirmed transactions in the Ethereum network, decreased by 0.52% from last week, with the lowest amount of unconfirmed transactions in the week being 89078 and the highest amount being 161879.

Total transaction fees of Bitcoin increased and Ethereum increased. As of December 6, 2020, average transaction fees of Bitcoin this week was $4.685, increased by 39.89% from last week. Average transaction fees of Ethereum this week was $1.482, incresead by 24.75%.

The average number of distinct miners per day in Ethereum increased. From November 30, 2020- December 6, 2020, the average number of distinct miners per day in Ethereum this week was 61.8, increased by 4.57% from last week.

The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum increased this week. As of December 6, 2020, there were 11007 Bitcoin nodes, decreased by 3.52% compared to last week, of which 1897 nodes were in the U.S, 1746 nodes were Germany, and 211 nodes were in China(№10), each accounting for 17.23%, 15.86% and 1.92% of the total number of Bitcoin nodes, respectively.

As of December 6, 2020, there were 11274 Ethereum nodes, increased by 1.92% from the previous week. Specifically, there were 3152 nodes in the U.S, 1599 nodes in Germany, and 1244 nodes in China, each accounting for 27.96%, 14.18%, 11.03% 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 December 6, 2020, the total number of Bitcoin addresses was 60776188, increased by 644678 (1.07%).

PIVX was the most active project on GitHub this week. From November 30, 2020 — December 6, 2020, PIVX was the active project repository on GitHub with a total of 57 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 951k, 626k and 180k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 992k, and 548k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. UN blockchain tool aims to improve land registry in Afghanistan’s cities

The United Nations has released a blockchain-powered solution to help the Afghan government manage property ownership issues in the country’s urban areas.According to a Dec. 2 announcement, the U.N. Human Settlements Programme, or U.N.-Habitat, will present its new digital land registry solution to the Ministry of Urban Development and Land in Afghanistan in December 2020.The U.N. first launched its blockchain project for sustainable urban development in Afghanistan in 2019. Now, with its new blockchain-enabled digital land registry tool, the U.N. wants to help Afghanistan address major challenges in urban informal settlements — otherwise known as slums or shanty towns — like land-grabbing, inefficient use of land, and insecure land tenure in informal settlements. Known as “‘goLandRegistry,” the new system is designed to record all property documents on a blockchain, as well as issue occupancy certificates. This will reportedly allow property owners to independently demonstrate the authenticity of occupancy certificates using an open-source blockchain verification tool.

2. Russia’s Alfa-Bank offers blockchain platform for freelancers

Alfa-Bank, one of the largest private commercial banks in Russia, is exploring blockchain technology in its services for freelancers.According to a Dec. 1 announcement, Alfa-Bank will use blockchain-based applications to automate services for freelancers and self-employed workers. Based on Waves Enterprise’s blockchain platform, Alfa-Bank’s new service covers the entire process of registration and remuneration for self-employed individuals, including payments settlement, income registration and tax payments.Denis Dodon, director of Alfa-Bank’s research and development center, told Cointelegraph that the new blockchain-based service enables freelancers to get direct remuneration via any bank:“DLT and embedded smart contracts with an end-to-end integration into the banking core settlements and clearings system allows to effect automatic formation of payment instructions […] with direct transmission of payment instructions via DLT to cards and bank accounts of self-employed in any bank.”

3. Universal Protocol Alliance introduces tradable carbon token

An alliance of crypto firms is introducing tokenized carbon credits for individuals to offset the amount of carbon dioxide they contribute. According to a Tuesday announcement, the Universal Protocol Alliance has launched a tradable carbon token on a public blockchain. The UPA stated that crypto users can “burn” the Universal Carbon token, UPCO2, to offset their carbon footprint. However, they also have the choice of holding the tokens or trading them like any other digital asset using Uphold, a major U.S. cryptocurrency wallet and trading platform that’s also a member of the UPA.One UPCO2 token represents a verified project in the rainforest reducing its carbon dioxide emissions by 1 metric ton annually. The alliance employs digital certificates issued by Verra, an international standards agency that allows certified projects to turn their greenhouse gas reductions into tradable carbon credits.“The projects we support through carbon credit purchases prevent deforestation in the Amazon, Congo Basin and Indonesia as well as other threatened rainforests,” said UPA chairman Matthew Le Merle. “At a key moment for climate change, UPCO2 allows people worldwide to do good for the planet and potentially do well for themselves.”

3.2 International Policies

1. One of Pakistan’s four provinces urges federal govt to legalize crypto

The assembly of Khyber Pakhtunkhwa, a province in northwestern Pakistan, has become the first legislative assembly to call for changes in the country’s stance toward cryptocurrencies.As previously reported, Pakistan has, to date, been relatively slow to introduce new frameworks for digital assets and cryptocurrencies. Fellow PTI member Zia Ullah Bangash, who is also Advisor to the Chief Minister of Khyber Pakhtunkhwa on Science and Technology and Information Technology, summed up the resolution as a demand that the federal government “take action to legalize cryptocurrency and cryptomining in Pakistan.” The bill was reportedly passed unanimously. According to local media, the draft resolution stated that current trends indicate that digital currencies are likely to replace paper currencies in the future.

2. Swiss National Bank and BIS complete digital currency proofs-of-concept

The Bank for International Settlements and the Swiss National Bank and are exploring the benefits of implementing a central bank digital currency, or CBDC, using blockchain technology.According to a Dec. 3 announcement, the BIS Innovation Hub Swiss Centre, or BISIH, has successfully completed two proofs-of-concept linking existing payment systems to a distributed ledger and settling tokenized assets with a wholesale CBDC.Known as “Project Helvetia,” the new initiative is a joint venture from the BISIH, the SNB and Switzerland’s top stock exchange, Six Group.The exchange stated that Project Helvetia explored the technological and legal feasibility of transferring digital assets through issuing a wholesale CBDC onto Six’s proprietary distributed digital asset platform, Six Digital Exchange. The new platform is expected to launch in the near future, offering issuance, trading, settlement, management and custody of tokenized assets.

3. South Korea to delay new tax regime on cryptocurrencies until 2022

The South Korean government has officially postponed a new tax regime on cryptocurrency gains until 2022.According to Yonhap on Dec. 1, the planning and finance committee of South Korea’s national assembly passed amendments to the country’s tax laws wherein a new cryptocurrency tax regime will come into effect in January 2022.On Nov. 25, the legislature suggested delaying the adoption of a cryptocurrency income tax rule to Jan. 1, 2022 instead of October 2021.The decision will provide local crypto businesses with more time to adapt to new tax laws. The newly passed amendments stipulate that investors in South Korea pay a 20% tax rate on crypto trading gains above 2.5 million won ($2,260) per year. Korean authorities first finalized the tax rate in July 2020.The postponement of a new crypto tax in South Korea comes in response to the efforts of local cryptocurrency advocates. In October, the Korea Blockchain Association requested the government to delay the implementation of its new tax framework until 2023. The association did not explicitly state it was against the 20% tax rate, but said that local crypto companies need a reasonable period of time to prepare for laws.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, RabbitHole got strategic investment from CollabCurrency leading, Coinsilium got 0.33 million pounds from strategic investment from IOV Labs.

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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