Huobi Research Weekly (Vol.171) (2021.6.21–2021.6.27)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 6.38%, with 92 projects decreased in value to varying degrees. According to coinmarketcap, as of June 27, 2021, the total market cap of cryptocurrencies was 1367.7 billion U.S.dollars, decreased of 6.38%, and the total market cap of the top 100 cryptocurrencies was 1349.8 billion U.S. dollars, decreased by 7.46% from last week. 1 cryptocurrency projects entered the top 100 this week, namely CELO. As of June 27, 2021, Bitcoin was traded at 34649.64USD, 2.92% lower than its price last week. Ethereum was traded at 1978.89USD, 11.84% lower than its price last week.

The hashrate of Bitcoin decreased and Ethereum decreased by this week. This week, the difficulty of mining Bitcoin decreased and the difficulty of mining Ethereum decreased. 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. LINK was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 101.9EH/s, decreased by 21.8% from the previous week. Average Hashrate for the entire Ethereum network was 505.47TH/s this week, decreased by 12.46%. Average difficulty for mining Bitcoin this week was 19.93T, as same as last week. The average difficulty of mining Ethereum this week was 6507.46TH, decreased by 11.87% from that of previous week.

In network activity, the average size of each block was 1.34 MB, increased by 12.61% from last week; there were on average 2004 transactions recorded in each block, increased by 10.35% from the previous week. The average number of transactions per block in Ethereum this week was 186.2, increased by 2.76%. The average size of each block was 54944.00 bytes, increased by 4.78% compared to last week. Average transaction fees of Bitcoin this week was $5.102, increased by 8.28% from last week. Average transaction fees of Ethereum this week was $2.312, decresead by 26.63% from last week. The total number of Bitcoin addresses was 73950589, decreased by 112900 (0.15%). Chainlink was the most active project on GitHub this week, with 43 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, Rarible got 14.2 million dollars in A round investment from CoinFund leading,Yield got 10 million dollars in A round investment from Paradigm leading.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 6.38%, with 92 projects decreased in value to varying degrees. According to coinmarketcap, as of June 27, 2021, the total market cap of cryptocurrencies was 1367.7 billion U.S.dollars, decreased of 6.38%, and the total market cap of the top 100 cryptocurrencies was 1349.8 billion U.S. dollars, decreased by 7.46% from last week, among which, CELO had the largest increased of 48.71%, bringing its market cap ranking from №105 to №71, KSM had the largest decreased of -40.92%, bringing its market cap ranking from №42 to №53. In addition, there were 1 projects that entered TOP100, namely, CELO (Celo, increased 48.71%, Now №71). As of June 27, 2021, Bitcoin was traded at 34649.64USD, 2.92% lower than its price last week. Ethereum was traded at 1978.89USD, 11.84% lower than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 8.19% compared with the same period of last week. In this week, 30 of the top 100 projects increased in 24h trading volume, led by CELO with a weekly increased of 833.48%; there were 70 projects decreased in their 24h trading volume, there were 46 projects that saw over 20% decrease in their 24h trading volume, while 8 projects fell by more than 50%, led by BTCB, with a decreased of -84.43%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On June 27, 2021, the overall market cap of the top 10 cryptocurrencies was 1144.1 billion USD, decreased by 6.17% from last week, accounting for 83.66% of the total market capitalization of cryptocurrencies, increased by 0.19% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 47.49%, increased by 1.69% 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 June 27, 2021, the total market cap of coin projects reached 824.0 billion USD, decreased by 4.97%. The average market cap of coin projects reached 17.1 billion USD, decreased by 4.97%. The total market cap of platform projects reached 346.1 billion USD, decreased by 11.36%. The average market cap of platform projects reached 15.0 billion USD, decreased by 11.36%. The total market cap of application class projects reached 114.9 billion USD, decreased by 15.58%. The average market cap of application class projects reached 4.42 billion USD, decreased by 15.58%. The total market cap of asset-backed token projects reached 64.6 billion USD, decreased by 0.08%. The average market cap of asset-backed token projects reached 21.5 billion USD, decreased by 0.08%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of June 27, 2021, among the top 100 projects, the number of coin class projects, application class projects, asset-backed token class projects and platform class both remain the same.The largest overall market cap by segment was still coin projects, accounting for 61.05% 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 and Ethereum decreased by this week. From June 21, 2021- June 27, 2021, the average bitcoin Hashrate for the entire network reached 101.9EH/s, decreased by 21.8% from the previous week.

Average Hashrate for the entire Ethereum network was 505.47TH/s this week, decreased by 12.46%.

This week, the difficulty of mining Bitcoin not changed and Ethereum decreased. As of June 27, 2021, average difficulty for mining Bitcoin this week was 19.93T, as same as last week. The average difficulty of mining Ethereum this week was 6507.46TH, decreased by 11.87% from that of previous week.

The number of blocks in Bitcoin decreased by 21.39%,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 691 blocks, decreased by 21.39% from the previous week. Among the top five pools were AntPool、F2Pool、ViaBTC、Poolin、Binance Pool, these 5 pools mined 96、92、85、71 and 70 blocks respectively, accounting for 13.89%、13.31%、12.30%、10.27% and 10.13% of all Bitcoins mined this week. The Hashrate was 13.62EH/s、13.05EH/s、12.06EH/s、10.07EH/s and 9.93EH/s, respectively.

In the past week, Ethereum’s entire network mined 47987 blocks, increased by 0.94% in the previous week. The top five pools were Ethermine, Spark Pool, F2pool Old, Hiveon Pool and BeePool, each mined 12110、9278、4331、3122 and 2786 blocks respectively, accounting for 25.2360%、19.3344%、9.0254%、6.5059% and 5.8057% 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 June 21, 2021- June 27, 2021, the average size of each block was 1.34 MB, increased by 12.61% from last week; there were on average 2004 transactions recorded in each block, increased by 10.35% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 186.2, increased by 2.76%. The average size of each block was 54944.00 bytes, increased by 4.78% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 116.92%. Number of unconfirmed transactions in Ethereum increased by 1.77% from the previous week. As of June 20, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 17395, increased by 116.92% from last week. There were 147678.6 unconfirmed transactions in the Ethereum network, increased by 1.77% from last week, with the lowest amount of unconfirmed transactions in the week being 137399 and the highest amount being 159933 `.

Total transaction fees of Bitcoin increased but Ethereum decreased. As of June 27, 2021, average transaction fees of Bitcoin this week was $5.102, increased by 8.28% from last week. Average transaction fees of Ethereum this week was $2.312, decresead by 26.63% from last week.

The average number of distinct miners per day in Ethereum increased. From June 21, 2021- June 27, 2021, the average number of distinct miners per day in Ethereum this week was 50.7, increased by 1.00% from last week.

The number of nodes in Bitcoin increased by 10.55% ,The number of nodes in Ethereum decreased by 4.39% this week. As of June 27, 2021, there were 10396 Bitcoin nodes, increased by 10.55% compared to last week, of which 1762 nodes were in U.S, 1686 nodes were in Germany, and 170 nodes were in China(№11), each accounting for 16.95%, 16.22% and 1.63% of the total number of Bitcoin nodes, respectively.

As of June 27, 2021, there were 4177 Ethereum nodes, decreased by 4.39% from the previous week. Specifically, there were 1546 nodes in the U.S, 656 nodes in Germany, and 412 nodes in China, each accounting for 37.01%, 15.71%, 9.86% of total number of nodes, respectively.

This week, the growth rate for new addresses of Bitcoin decreased. According to the data on blockchain, as of June 27, 2021, the total number of Bitcoin addresses was 73950589, decreased by 112900 (0.15%).

LINK was the most active project on GitHub this week. From June 21, 2021 — June 27, 2021, Chainlink was the active project repository on GitHub with a total of 43 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 233k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 2.8million , 1.8million, and 1.3million followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Germany commemorates Euro 2020 soccer team with NFTs

The German Football Association (DFB) has officially announced the debut of national soccer team nonfungbile tokens (NFTs) in partnership with a major blockchain-based fantasy soccer game provider Sorare.As part of an official license agreement, the DFB will create digital collectible cards on the Ethereum blockchain of 18 players on the German national team through Sorare’s platform. According to an announcement from Sorare, the cards will be available for use in Sorare’s Global Fantasy Football game for the Euro 2020 soccer championship.By issuing player NFT cards on Sorare’s platform, the DFB aims to find new revenue streams as well as provide more fan engagement opportunities, particularly as COVID-19-related restrictions have resulted in limited game attendance in recent months.

2. UN sees blockchain technology as tool to fight climate crisis

Amid ongoing concerns over Bitcoin’s carbon footprint, the United Nations has said that cryptocurrency’s underlying technology has massive potential for fixing global issues such as climate change.The U.N. will keep exploring the uses of blockchain technology as a way to fight the climate crisis and help reach a more sustainable global economy, according to an article published on the official U.N. website on Sunday.U.N. experts are confident that “cryptocurrencies and the technology that powers them can play an important role in sustainable development, and actually improving our stewardship of the environment.” Specifically, the article points out a number of environmental and sustainability benefits associated with blockchain, including its power to enable transparency and resistance to fraud, climate finance and clean energy markets.Citing the U.N. Environment Programme’s partnership with the Technical University of Denmark, the article states that data on harmful greenhouse gas emissions is unreliable and incomplete in many countries. In providing an immutable record of carbon data, blockchain solutions can provide a transparent way for nations to take action to reduce their impact on the climate.

3. Banque de France tests digital currency-based securities settlement

The central bank of France — Banque de France — is continuing its work on the development of a European central bank digital currency (CBDC).The bank officially announced the successful completion of a CBDC experiment with major Switzerland-based cryptocurrency bank SEBA.Conducted in collaboration with SEBA, Banque Internationale à Luxembourg, and Luxembourg central securities depository LuxCSD, the experiment used a CBDC to simulate the settlement and delivery of listed securities on TARGET2-Securities (T25), a European securities settlement engine. Nathalie Aufauvre, general director of financial stability and operations at Banque de France, said that the latest CBDC test demonstrated the possibilities for conventional finance systems and distributed systems to interact. “It also paves the way for other alliances in order to benefit from the opportunities offered by financial assets in a blockchain environment,” Aufauvre said.

3.2 International Policies

1. Bipartisan bill to study blockchain and crypto passes US House of Representatives

A bipartisan bill that requires the study of blockchain technology and digital tokens passed the House of Representatives on June 22.The “Consumer Safety Technology Act’’ is centered on consumer protection and includes digital token and blockchain research. The bill passed the 117th Congress within a week of its introduction, with a resounding 325 votes in favor of, and 103 votes against. Among other things, the bill calls for the Consumer Product Safety Commission to deploy a pilot AI program to aid consumer safety inspections, such as identifying consumer product hazards and tracking trends related to injuries involving consumer products. Additionally, it calls for the Secretary of Commerce and the Federal Trade Commission (FTC) to “study and report on the use of blockchain technology and digital tokens.” The Blockchain Innovation Act requires the study of investment trends in the crypto industry, the potential risks and benefits of blockchain tech designed for consumer protection, and areas in which regulation could foster domestic innovation.

2. Opposition poses constitutional challenge to El Salvador’s Bitcoin law

El Salvador’s grand plans to promote Bitcoin adoption could be turned on their head if President Bukele’s Bitcoin law is proven to be unconstitutional in the country’s courts.A group of citizens joining forces with political party, Farabundo Martí National Liberation Front (FMLN), has filed a lawsuit claiming President Bukele’s Bitcoin adoption program is unconstitutional.FMLN legislator, Jaime Guevara, led the move along with citizens including plaintiff Óscar Artero, who characterize the country’s Bitcoin law as “lacking in legality, foundation, and did not consider the significance and harmful effects that such a law will cause to the country,” according to a translation from local media outlet El Mundo. A survey of 1,600 individuals conducted by the Chamber of Commerce and Industry of El Salvador indicated that more than eight out of ten Salvadorans would not agree to receive payments and salaries in Bitcoin.

3. Biden nominee for Treasury Dept will prioritize crypto regulation

Brian Nelson, President Joe Biden’s nominee for under secretary of the Treasury Department’s division on terrorism and financial crimes, said he would prioritize implementing new regulations around cryptocurrency.In a hearing of the Senate Committee on Banking, Housing, and Urban Affairs, Nelson said he would be focusing on Anti-Money laundering (AML) regulations if he were to be confirmed for the position in the Treasury Department’s terrorism and financial intelligence arm, adding that cryptocurrency would be a particular priority.Responding to a question from Nevada Sen. Catherine Cortez Masto regarding “the damage done by crypto heists,” Nelson said the Anti-Money Laundering Act of 2020 reflected expanded regulators’ ability to prevent cryptocurrencies from undermining existing laws. However, he implied that the creation of crypto was also part of “responsible innovation” in the United States.“If I am confirmed, I will prioritize implementing the pieces of that legislation, including new regulations around cryptocurrency,” said Nelson. “I think that legislation provided new authorities — or clarified the law — that cryptocurrencies or currency in whatever form, be it virtual or fiat, is covered by the Bank Secrecy Act.”

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Rarible got 14.2 million dollars in A round investment from CoinFund leading,Yield got 10 million dollars in A round investment from Paradigm 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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