Huobi Research Weekly (Vol.153) (2021.2.8–2021.2.14)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 21.29%, with 98 projects increased in value to varying degrees. According to coinmarketcap, as of February 14, 2021, the total market cap of cryptocurrencies was 1427.0 billion U.S. dollars, increased of 21.29%, and the total market cap of the top 100 cryptocurrencies was 1461.2 billion U.S. dollars, increased by 25.31% from last week. 4 cryptocurrency projects entered the top 100 this week, namely BTG、LSK、RVN and PAX. As of February 14, 2021, Bitcoin was traded at 48717.29USD, 25.27% higher than its price last week. Ethereum was traded at 1805.08USD, 11.92% 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 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. LINK was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 157.3EH/s, increased by 3.15% from the previous week. Average Hashrate for the entire Ethereum network was 384.31TH/s this week, increased by 5.58%. Average difficulty for mining Bitcoin this week was 21.43T, increased by 0.23% from last week. The average difficulty of mining Ethereum this week was 4882.95TH, increased by 5.91% from that of previous week.

In network activity, the average size of each block was 1.32MB, increased by 2.33% from last week; there were on average 2144 transactions recorded in each block, increased by 2.10% from the previous week. The average number of transactions per block in Ethereum this week was 197.0, decreased by 0.40%. The average size of each block was 45031.14 bytes, decreased by 0.16% compared to last week. Average transaction fees of Bitcoin this week was $20.282, increased by 43.74% from last week. Average transaction fees of Ethereum this week was $21.147, incresead by 9.13% from last week. The total number of Bitcoin addresses was 67338918, increased by 668880 (1.00%) . Chainlink was the most active project on GitHub this week, with 42 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 Ethereum.

2 investments activities took place in the blockchain industry this week, Public Mint got 2.5 million dollars in strategic investment from Black Edge Capital,Spark Digital Capital etc, Plasm got 2.4 million dollars in strategic investment from BinanceLabs leading.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 21.29%, with 98 projects increased in value to varying degrees. According to coinmarketcap, as of February 14, 2021, the total market cap of cryptocurrencies was 1427.0 billion U.S. dollars, increased of 21.29%, and the total market cap of the top 100 cryptocurrencies was 1461.2 billion U.S. dollars, increased by 25.31% from last week, among which, PAX had the largest increased of 177.22%, bringing its market cap ranking from №103 to №76, DOGE had the largest decreased of -20.56%, bringing its market cap ranking from №10 to №12. In addition, there were 4 projects that entered TOP100, namely, BTG (Bitcoin Gold, increased 119.03%, Now №94), RVN (Ravencoin, increased 130.44%, Now №79), LSK (Lisk, increased 145.56%, Now №90), PAX (Paxos Standard, increased 177.22%, Now №76). As of February 14, 2021, Bitcoin was traded at 48717.29USD, 25.27% higher than its price last week. Ethereum was traded at 1805.08USD, 11.92% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 9.45% compared with the same period of last week. In this week, 64 of the top 100 projects increased in 24h trading volume, led by LSK with a weekly increase of 1729.49%; there were 36 projects decreased in their 24h trading volume, there were 19 projects that saw over 20% decrease in their 24h trading volume, while 4 projects fell by more than 50%, led by DOGE, with a decreased of -72.06%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On February 14, 2021, the overall market cap of the top 10 cryptocurrencies was 1286.9 billion USD, increased by 24.17% from last week, accounting for 90.18% of the total market capitalization of cryptocurrencies, increased by 2.09% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 63.60%, increased by 2.02% 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 Asset-backed token Project got the largest increase. As of February 14, 2021, the total market cap of coin projects reached 1048.2 billion USD, increased by 26.55%. The average market cap of coin projects reached 20.5 billion USD, increased by 26.55%. The total market cap of platform projects reached 280.0 billion USD, increased by 17.25%. The average market cap of platform projects reached 12.1 billion USD, increased by 17.25%. The total market cap of application class projects reached 100.3 billion USD, increased by 44.65%. The average market cap of application class projects reached 4.18 billion USD, increased by 38.62%. The total market cap of asset-backed token projects reached 32.5 billion USD, increased by 10.30%. The average market cap of asset-backed token projects reached 16.2 billion USD, increased by 65.45%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of February 14, 2021, among the top 100 projects, the number of coin class projects reamin the same, application class projects increase 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 71.74% 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 February 8, 2021- February 14, 2021, the average bitcoin Hashrate for the entire network reached 157.3EH/s, increased by 3.15% from the previous week.

Average Hashrate for the entire Ethereum network was 384.31TH/s this week, increased by 5.58%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of February 14, 2021, average difficulty for mining Bitcoin this week was 21.43T, increased by 0.23% from last week. The average difficulty of mining Ethereum this week was 4882.95TH, increased by 5.91% from that of previous week.

The number of blocks in Bitcoin decreased by 1.04%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks decreased by 0.60%. In the past week, Bitcoin mined 1044 blocks, decreased by 1.04% from the previous week. Among the top five pools were Poolin、F2Pool、Binance Pool、BTC.com、AntPool, these 5 pools mined 156、154、136、108 and 100 blocks respectively, accounting for 14.94%、14.75%、13.03%、10.34% and 9.58% of all Bitcoins mined this week. The Hashrate was 23.68EH/s、23.37EH/s、20.64EH/s、16.39EH/s and 15.18EH/s, respectively.

In the past week, Ethereum’s entire network mined 48108 blocks, decreased by 0.60% in the previous week. The top five pools were SparkPool, Ethermine, F2pool,Zhizhu.top, and Nanopool, each mined 12027、9564、5288、3332 and 2340 blocks respectively, accounting for 25.0000%、19.8803%、10.9919%、6.9261% and 4.8641% 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 February 8, 2021- February 14, 2021, the average size of each block was 1.32MB, increased by 2.33% from last week; there were on average 2144 transactions recorded in each block, increased by 2.10% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 197.0, decreased by 0.40%. The average size of each block was 45031.14 bytes, decreased by 0.16% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 87.13%. Number of unconfirmed transactions in Ethereum increased by 3.01% from the previous week. As of February 14, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 43354, increased by 87.13% from last week. There were 162053.8 unconfirmed transactions in the Ethereum network, increased by 3.01% from last week, with the lowest amount of unconfirmed transactions in the week being 149230 and the highest amount being 177244`.

Total transaction fees of Bitcoin increased and Ethereum increased. As of February 14, 2021, average transaction fees of Bitcoin this week was $20.282, increased by 43.74% from last week. Average transaction fees of Ethereum this week was $21.147, incresead by 9.13% from last week.

The average number of distinct miners per day in Ethereum decreased. From February 8, 2021- February 14, 2021, the average number of distinct miners per day in Ethereum this week was 50.2, decreased by 4.74% from last week.

The number of nodes in Bitcoin increased ,The number of nodes in Ethereum decreased this week. As of February 14, 2021, there were 9856 Bitcoin nodes, increased by 9.61% compared to last week, of which 1852 nodes were in U.S, 1763 nodes were in Germany, and 228 nodes were in China(№9), each accounting for 18.79%, 17.89% and 2.31% of the total number of Bitcoin nodes, respectively.

As of February 14, 2021, there were 11957 Ethereum nodes, decreased by 4.04% from the previous week. Specifically, there were 3120 nodes in the U.S, 2255 nodes in Germany, and 940 nodes in China, each accounting for 26.09%, 18.86%, 7.86% 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 February 14, 2021, the total number of Bitcoin addresses was 67338918, increased by 668880 (1.00%).

LINK was the most active project on GitHub this week. From February 8, 2021 — February 14, 2021, Chainlink was the active project repository on GitHub with a total of 42 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 949k, 625k and 193k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 1.4million , 1.1million, and 691k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Amazon job postings hint at digital payments project to launch in Mexico

American e-commerce giant Amazon is developing a new service that will allow its customers to shop using digital currency, according to the company’s job postings.According to an official job application on Amazon, the company is now building a tech team to enable a new digital currency service. Currently known as a “Digital and Emerging Payments,” or DEP, project, the service will initially roll out in Mexico, allowing local people to buy crypto with cash to spend digital currency while shopping. The job posting reads:“We are looking for a leader to help us launch a new payment product starting with Mexico as our initial launch country. This product will enable customers to convert their cash into digital currency using which customers can enjoy online services including shopping for goods and/or services like Prime Video.”According to the application, Amazon’s digital currency-focused software development managers are required to have a Bachelor’s degree in computer science or other equivalent degrees with over three years of managing the delivery of distributed software systems.

2. AC Milan fans to use blockchain tokens to vote on soccer club motto

Italian football giant AC Milan has just launched its own fan token, enabling fans to vote on a club motto for the season.According to a Feb. 11 announcement, the club’s ACM fan token is now live on fan engagement Socios.com, which allows fans to purchase the token which gives access to club polls, VIP rewards, super-fan recognition, games and chat forums. The token debuted trading at $6.68.In partnership with blockchain firm Chiliz, AC Milan is debuting the ACM token with a team motto poll that will see ACM holders create and vote on a motto to inspire players for the rest of the 2020–2021 Serie A playing season. The winning motto will be placed inside the first-team dressing room at the San Siro stadium.Scheduled for the next week, the poll is designed to provide over 500 million AC Milan fans around the world with an opportunity to support their favorite football stars.AC Milan officially announced its plans to launch the ACM fan token on Chiliz in January 2021 in a move to reach the club fans amid the ongoing COVID-19 restrictions.

3. MasterCard announces support for crypto on its network

MasterCard has announced plans to support cryptocurrencies in 2021, paving the way for its nearly one billion users to spend digital assets at more than 30 million merchants.The firm believes this may open merchants up to new customers and build loyalty with existing customers who are already migrating to digital assets over traditional fiat options. While the global payments giant noted it is planning to support stablecoins due to their “reliability and security,” Mastercard declined to name any specific cryptocurrencies it will integrate.However, Mastercard offered four core criteria by which it will be assessing prospective assets: robust consumer protections including consumer privacy and security, strict KYC compliance, adherence to local laws and regulations, and stability as a means of payment.MasterCard also noted it is “actively engaging with several major central banks around the world” to support central bank digital currency initiatives, or CBDCs.

3.2 International Policies

1. Nigeria’s SEC suspends planned crypto regulations amid central bank ban

he Nigerian Securities and Exchange Commission has put its plans for regulating cryptocurrencies on hold following the recent ban by the central bank prohibiting financial institutions from servicing crypto exchanges.In an emailed statement quoted by the Daily Post on Friday, the SEC stated:“For the purpose of admittance into the SEC Regulatory Incubation Framework, the assessment of all persons (and products) affected by the CBN Circular of February 5, 2021, is hereby put on hold until such persons are able to operate bank accounts within the Nigerian banking system.” For the SEC, its latest statement is in response to inquiries from stakeholders as to the perceived policy conflicts between its September announcement and the central bank circular. According to the commission, the regulatory sandbox proposal for non-crypto fintech firms focusing on the capital market will still continue as planned.

2. Major Thai bank’s venture arm sets up $50M fund to invest in blockchain, DeFi

Siam Commercial Bank — Thailand’s oldest bank, established by royal charter back in 1907 — is cementing its reputation as a strong backer of innovative financial technologies. The institution’s venture arm, SCB 10X, has today announced a new $50 million fund that will be dedicated to investments in global blockchain, decentralized finance and digital asset startups in their early and growth stages. Mukaya Panich, chief venture and investment officer at SCB 10X, has hinted at these benefits in his official statement for the launch of the new fund: “In the financial industry, blockchain-enabled financial services have the potential to broaden financial inclusion, facilitate open access, and encourage innovation. With our new $50m VC fund, we will invest across the capital stack in innovative and promising startups in blockchain infrastructure, blockchain innovative applications, and decentralized finance globally.”

3. G7 to discuss CBDC and digital taxation this week

Japanese Finance Minister Taro Aso has revealed the G7’s financial leaders will discuss central bank digital currencies during a meeting on Feb. 12.The meeting will be chaired by Britain, with representatives from the world’s largest economies set to discuss strategies for navigating their way out of the global economic crisis caused by the coronavirus pandemic.Friday’s meeting will commence on the topic of CBDCs, but the minister noted the G7 will also discuss the implementation of digital taxation and emerging debt problems.The G7, or Group of Seven, is an intergovernmental organization consisting of the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom.The G7 has recently pushed to prioritize the regulation of digital currencies, with the organization reiterating its October statement calling for robust legislation to govern the digital payments sector during a meeting last month.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Public Mint got 2.5 million dollars in strategic investment from Black Edge Capital,Spark Digital Capital etc, Plasm got 2.4 million dollars in strategic investment from BinanceLabs leading.

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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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