Huobi Research Weekly (Vol.144) (2020.12.7)-2020.12.13)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 2.15%, with 76 projects decreased in value to varying degrees. According to coinmarketcap, as of December 13, 2020, the total market cap of cryptocurrencies was 559.0 billion U.S. dollars, decreased of 2.15%, and the total market cap of the top 100 cryptocurrencies was 552.5 billion U.S. dollars, decreased by 2.05% from last week. 2 cryptocurrency projects entered the top 100 this week, namely AVAX and CVT. As of December 13, 2020, Bitcoin was traded at 19142.38USD, 1.01% lower than its price last week. Ethereum was traded at 589.66USD, 1.95% lower 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 but 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 133.5EH/s, increased by 0.07% from the previous week.Average Hashrate for the entire Ethereum network was 285.17TH/s this week, increased by 0.06%. Average difficulty for mining Bitcoin this week was 19.15T, as same as last week. The average difficulty of mining Ethereum this week was 3625.31TH, increased by 0.29% from that of previous week.

In network activity, the average size of each block was 1.30MB, decreased by 2.99% from last week; there were on average 2238 transactions recorded in each block, increased by 14.07% from the previous week. The average number of transactions per block in Ethereum this week was 170.1, increased by 0.24%. The average size of each block was 40149.00 bytes, increased by 2.63% compared to last week. Average transaction fees of Bitcoin this week was $3.165, decreased by 32.44% from last week. Average transaction fees of Ethereum this week was $1.59, incresead by 7.29%. The total number of Bitcoin addresses was 61497483, increased by 721295 (1.19%). Chainlink was the most active project on GitHub this week, with 22 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, IPFSUNION got 0.1 billion yuan in A round investment from Industrial fund of Fuzhou high tech Zone, Lukka got C round investment from Street Corporation leading.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 2.15%, with 76 projects decreased in value to varying degrees. According to coinmarketcap, as of December 13, 2020, the total market cap of cryptocurrencies was 559.0 billion U.S. dollars, decreased of 2.15%, and the total market cap of the top 100 cryptocurrencies was 552.5 billion U.S. dollars, decreased by 2.05% from last week, among which, AVAX had the largest increased of 190.60%, bringing its market cap ranking from №115 to №61, XRP had the largest decreased of -17.36%, bringing its market cap ranking from №3 to №3. In addition, there were 2 projects that entered TOP100, namely, AVAX (Avalanche, increased 190.60%, Now №61), CVT (CyberVein,increased 16.86%, Now №94). As of December 13, 2020, Bitcoin was traded at 19142.38USD, 1.01% lower than its price last week. Ethereum was traded at 589.66USD, 1.95% lower than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 6.32% compared with the same period of last week. In this week, 37 of the top 100 projects increased in 24h trading volume, led by CEL with a weekly increase of 109.15%; there were 63 projects decreased in their 24h trading volume, there were 30 projects that saw over 20% decrease in their 24h trading volume, while 8 projects fell by more than 50%, led by ANT, with a decreased of -62.83%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On December 13, 2020, the overall market cap of the top 10 cryptocurrencies was 494.6 billion USD, decreased by 2.11% from last week, accounting for 88.47% of the total market capitalization of cryptocurrencies, increased by 0.04% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 63.58%, increased by 0.73% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Application Project got the largest decrease. The average market cap of Application Project got the largest decrease. As of December 13, 2020, the total market cap of coin projects reached 395.4 billion USD, decreased by 1.02%. The average market cap of coin projects reached 8.59 billion USD, increased by 1.13%. The total market cap of platform projects reached 89.9 billion USD, decreased by 2.29%. The average market cap of platform projects reached 3.59 billion USD, decreased by 2.29%. The total market cap of application class projects reached 46.8 billion USD, decreased by 10.41%. The average market cap of application class projects reached 1.80 billion USD, decreased by 13.85%. The total market cap of asset-backed token projects reached 20.3 billion USD, increased by 0.49%. The average market cap of asset-backed token projects reached 6.78 billion USD, increased by 0.49%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of December 13, 2020, among the top 100 projects, the number of coin class projects decrease 1, application class projects increase 1, platform class projects and asset-backed token class remain the same.The largest overall market cap by segment was still coin projects, accounting for 71.57% 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 December 7, 2020- December 13, 2020, the average bitcoin Hashrate for the entire network reached 133.5EH/s, increased by 0.07% from the previous week.

Average Hashrate for the entire Ethereum network was 285.17TH/s this week, increased by 0.06%.

This week, the difficulty of mining Bitcoin not changed and Ethereum increased. As of December 13, 2020, average difficulty for mining Bitcoin this week was 19.15T, as same as last week. The average difficulty of mining Ethereum this week was 3625.31TH, increased by 0.29% from that of previous week.

The number of blocks in Bitcoin increased by 0.93%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.10%. In the past week, Bitcoin mined 980 blocks, increased by 0.93% from the previous week. Among the top five pools were F2Pool、Poolin、Binance Pool、Ant Pool、BTC.com, these 5 pools mined 182、126、118、102 and 95 blocks respectively, accounting for 18.57%、12.86%、12.04%、10.41% and 9.69% of all Bitcoins mined this week. The Hashrate was 24.76EH/s、17.14EH/s、16.05EH/s、13.88EH/s and 12.93EH/s, respectively.

In the past week, Ethereum’s entire network mined 48707 blocks, increased by 0.10% in the previous week. The top five pools were SparkPool, Ethermine, F2pool,Zhizhu.top, and Nanopool, each mined 12820、10632、4631、4067 and 2432 blocks respectively, accounting for 26.3207%、21.8285%、9.5079%、8.3499% and 4.9931% 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 increased and the average block size of Ethereum increased this week. According to blockchain.info, from December 7, 2020- December 13, 2020, the average size of each block was 1.30MB, decreased by 2.99% from last week; there were on average 2238 transactions recorded in each block, increased by 14.07% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 170.1, increased by 0.24%. The average size of each block was 40149.00 bytes, increased by 2.63% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 65.34%. Number of unconfirmed transactions in Ethereum increased by 0.79% from the previous week. As of December 13, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 2441, decreased by 65.34% from last week. There were 148605.53 unconfirmed transactions in the Ethereum network, increased by 0.79% from last week, with the lowest amount of unconfirmed transactions in the week being 107605 and the highest amount being 160478.

Total transaction fees of Bitcoin decreased but Ethereum increased. As of December 13, 2020, average transaction fees of Bitcoin this week was $3.165, decreased by 32.44% from last week. Average transaction fees of Ethereum this week was $1.59, incresead by 7.29%.

The average number of distinct miners per day in Ethereum increased. From December 7, 2020- December 13, 2020, the average number of distinct miners per day in Ethereum this week was 62.8, increased by 1.62% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum decreased this week. As of December 13, 2020, there were 11387 Bitcoin nodes, increased by 3.45% compared to last week, of which 1915 nodes were in the U.S, 1753 nodes were Germany, and 213 nodes were in China(№10), each accounting for 16.82%, 15.39% of the total number of Bitcoin nodes, respectively.

As of December 13, 2020, there were 11136 Ethereum nodes, decreased by 1.22% from the previous week. Specifically, there were 3157 nodes in the U.S, 1666 nodes in Germany, and 1230 nodes in China, each accounting for 28.35%, 14.96%, 11.05% 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 13, 2020, the total number of Bitcoin addresses was 61497483, increased by 721295 (1.19%).

LINK was the most active project on GitHub this week. From December 7, 2020 — December 13, 2020, Chainlink was the active project repository on GitHub with a total of 22 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 951k, 625k and 180k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1.1million , 996k, and 549k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Blockchain-powered Bordeaux? IBM announces wine supply chain tracing system

An IBM blockchain-powered platform is now offering a way for people to track wine from its vineyard origins all the way to your local store shelf.In an announcement today, IBM said it has partnered with wine monitoring firm eProvenance to release the VinAssure platform. Built on IBM Blockchain Transparent Supply, VinAssure will reportedly run on IBM Cloud and allow wine producers, importers, transporters, distributors, restaurants, retailers, and others to track the supply chain of bottles “through a permissioned, permanent and shared record of data.”VinAssure’s members include North Carolina-based wine importer De Maison Selections, which reports $22 million in revenue annually. IBM stated that Bordeaux-based winemaker Maison Sichel and the export division of Sainte Michelle Wine Estates were intending to use the blockchain-based supply chain system soon, potentially representing “millions of bottles of wines moving through the global supply chain.” The IBM system will reportedly allow wine enthusiasts to use identification codes on bottles to learn about the “provenance and flavor profiles” in addition to any standards regarding organic, biodynamic, or sustainability practices. They will also be able to access information on the wine, validated and stored on the blockchain, from the vineyard to delivery.

2. Thai tax collectors to streamline revenues with blockchain tech in 2021

Thailand’s tax collection agency will use blockchain technology to streamline tax payments next year.The Excise Department will use blockchain to improve its revenue collection in lieu of actually raising taxes as the Thai economy still makes a gradual recovery. According to a report by the Bangkok Post, director-general Lavaron Sangsnit underscored that new policies should not affect the domestic economic recovery and that raising taxes could stunt the still fragile situation. The government aims to collect 530 billion baht ($17.5 billion) for the fiscal year 2020, 3.3% less than the 548 billion baht ($18 billion) collected in 2019.In 2021, the Revenue and Customs Departments will also incorporate blockchain technology into their operations. Sangsnit said that blockchain will help these departments calculate tax liabilities, import duties and prices. The three departments will combine blockchain-based collection data into a single database, which will supposedly make tax evasion more difficult.

3. LayerX will develop blockchain-based voting system using digital ID verification in Japan

Japanese firm Layer X will be partnering with a digital identity application called xID to build a blockchain-based voting system in the Japanese city of Kaga.In a Thursday announcement from LayerX, the Tokyo-based company said it will be developing the electronic voting project in an effort to promote safe and secure elections for the city of 68,000 inhabitants. The firm stated that the cost and stability of current electronic voting systems in the region needed to be addressed.“Voting over the Internet presents more challenges, such as preventing double voting, technical hurdles to keep ballots secret, and the cost of voting devices,” stated the company announcement. “LayerX researched and developed an electronic voting protocol that balances the transparency of the voting process and the confidentiality of voting records.”According to the firm, the xID application will strengthen the company’s existing voting system by helping verify a voter’s identity and ensuring only one ballot is issued per person. LayerX’s system will reportedly allow voters to check their own voting results, as well as provide the cryptographic ability to independently verify that the recording and aggregation processes for a particular vote was performed correctly on the blockchain network.

3.2 International Policies

1. France moves to ban anonymous crypto accounts to prevent money laundering

French financial authorities are strengthening the country’s cryptocurrency regulations in a move to prevent illicit activities like money laundering and terrorism financing.On Dec. 9, several ministries in France jointly introduced an order aiming to prevent anonymous digital asset transactions by banning anonymous crypto accounts. The order is pursuant to Article 203 of France’s PACTE law, which stands for the Action Plan for Business Growth and Transformation. In the document, the ministries have admitted that digital assets or cryptocurrencies provide “significant opportunities for the economy,” noting that the French government is fully aware of its importance.Despite promising opportunities, crypto also comes with significant risks related to illicit financial activity, the authorities noted.The ministers specifically referred to September 2020 arrests involving a terrorist financing network using digital assets to cover their tracks. Major global authorities and organizations like the Financial Action Task Force, the G7 and the G20 have called for measures to prevent illicit activity using crypto.

2. Venezuela ramps up Bitcoin payments for imports from Iran and Turkey

According to an investigative report from RunRun.es, Venezuela intends to increase its use of Bitcoin to pay for imports to bypass financial sanctions imposed by the United States.RunRun.es, which was founded by Venezuelan investigative journalist Nelson Bocaranda, cited anonymous sources from the country’s central bank who claim that “payments to companies from allied countries such as Iran and Turkey have been made using Bitcoin.”It is unclear, what these imports consist of, however, Turkey and Iran currently provide the country food and fuel in exchange for gold. On Oct. 8, Venezuela’s National Assembly passed the Anti-Blockade Law, granting further executive powers to circumvent sanctions imposed on the country, including to authorize the creation or use of any crypto asset as a monetary instrument.

3. Standard Chartered to launch institutional-grade crypto custody in 2021

Standard Chartered, one of the biggest banks in the United Kingdom, has officially announced plans to provide institutional custody for major cryptocurrencies like Bitcoin (BTC).According to a Dec. 9 announcement, Standard Chartered’s innovation arm SC Ventures has partnered with United States-based investment management firm Northern Trust to launch cryptocurrency custodian for institutional investors.Called “Zodia,” Standard Chartered’s crypto custody platform is subject to registration with the U.K. Financial Conduct Authority, and is expected to begin operations in London in 2021. The platform is now in the process of registering with the FCA under U.K. money laundering regulations and will apply standards equivalent to the custody of traditional securities.Zodia will initially support Bitcoin, Ether (ETH), XRP, Litecoin (LTC), and Bitcoin Cash (BCH) as they account for “approximately 80% of the total assets” in crypto, the announcement notes.Alex Manson, an executive at SC Ventures, said that the launch of Zodia custody demonstrates Standard Chartered’s commitment to “rewiring the DNA in banking.”

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, IPFSUNION got 0.1 billion yuan in A round investment from Industrial fund of Fuzhou high tech Zone, Lukka got C round investment from Street Corporation leading.

Huobi Research

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