Huobi Research Weekly (Vol.174) (2021.7.12–2021.7.18)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 10.37%, with 89 projects decreased in value to varying degrees. According to coinmarketcap, as of July 18, 2021, the total market cap of cryptocurrencies was 1281.8 billion U.S.dollars, decreased of 10.37%, and the total market cap of the top 100 cryptocurrencies was 1263.8 billion U.S. dollars, decreased by 8.34% from last week. 4 cryptocurrency projects entered the top 100 this week, namely RVN, HUSD,UMA and REV. As of July 18, 2021, Bitcoin was traded at 31796.81USD, 7.11% lower than its price last week. Ethereum was traded at 1895.55USD, 11.34% lower than its price last week.

The hashrate of Bitcoin increased and Ethereum increased by this week. This week, the difficulty of mining Bitcoin decreased but the difficulty of mining Ethereum increased. The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block decreased but 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 101.6EH/s, increased by 8.97% from the previous week. Average Hashrate for the entire Ethereum network was 515.62TH/s this week, increased by 0.99%. Average difficulty for mining Bitcoin this week was 14.36T, decreased by 6.39% from last week. The average difficulty of mining Ethereum this week was 6669.91TH, increased by 2.01% from that of previous week.

In network activity, the average size of each block was 1.05 MB, decreased by 17.32% from last week; there were on average 1511 transactions recorded in each block, decreased by 13.46% from the previous week. The average number of transactions per block in Ethereum this week was 186.5, decreased by 1.53%. The average size of each block was 56617.14bytes, decreased by 5.09% compared to last week. Average transaction fees of Bitcoin this week was $2.188, decreased by 36.73% from last week. Average transaction fees of Ethereum this week was $4.315, incresead by 42.69% from last week. The total number of Bitcoin addresses was 74774917, increased by 124177 (0.17%). Chainlink was the most active project on GitHub this week, with 34 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, Blocknative got 12 million dollars in strategic investment from Ignition Fund leading,SuperNFT got 5 million dollars in A round investment from Picasso group leading.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 10.37%, with 89 projects decreased in value to varying degrees. According to coinmarketcap, as of July 18, 2021, the total market cap of cryptocurrencies was 1281.8 billion U.S.dollars, decreased of 10.37%, and the total market cap of the top 100 cryptocurrencies was 1263.8 billion U.S. dollars, decreased by 8.34% from last week, among which, XEM had the largest increased of 16.58%, bringing its market cap ranking from №71 to №59, RUNE had the largest decreased of -34.68%, bringing its market cap ranking from №61 to №71. In addition, there were 4 projects that entered TOP100, namely, REV (Revain, increased 1.14%, Now №89), HUSD (HUSD, decreased 5.96%, Now №95), RVN (Ravencoin, increased 12.53%, Now №97), UMA (UMA, decreased 9.99%, Now №100). As of July 18, 2021, Bitcoin was traded at 31796.81USD, 7.11% lower than its price last week. Ethereum was traded at 1895.55USD, 11.34% lower than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 0.39% compared with the same period of last week. In this week, 54 of the top 100 projects increased in 24h trading volume, led by XEM with a weekly increased of 487.18%; there were 46 projects decreased in their 24h trading volume, there were 18 projects that saw over 20% decrease in their 24h trading volume, while 6 projects fell by more than 50%, led by DCR, with a decreased of -84.00%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On July 18, 2021, the overall market cap of the top 10 cryptocurrencies was 1070.2 billion USD, decreased by 7.51% from last week, accounting for 83.49% of the total market capitalization of cryptocurrencies, increased by 2.58% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 46.54%, increased by 1.64% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Platform project got the largest decrease. The average market cap of Asset-backed project got the largest decrease. As of Junly 18, 2021, the total market cap of coin projects reached 752.7 billion USD, decreased by 8.22%. The average market cap of coin projects reached 15.6 billion USD, decreased by 11.00%. The total market cap of platform projects reached 328.7 billion USD, decreased by 6.90%. The average market cap of platform projects reached 13.6 billion USD, decreased by 18.42%. The total market cap of application class projects reached 118.4 billion USD, decreased by 5.61%. The average market cap of application class projects reached 4.73 billion USD, increased by 1.94%. The total market cap of asset-backed token projects reached 63.8 billion USD, increased by 0.26%. The average market cap of asset-backed token projects reached 21.2 billion USD, decreased by 33.16%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of July 18, 2021, among the top 100 projects, the number of coin class projects decrease 1, application class projects decrease 2, asset-backed token class projects increase 1 and platform class increase 2.The largest overall market cap by segment was still coin projects, accounting for 59.56% 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 July 12, 2021- July 18, 2021, the average bitcoin Hashrate for the entire network reached 101.6EH/s, increased by 8.97% from the previous week.

Average Hashrate for the entire Ethereum network was 515.62TH/s this week, increased by 0.99%.

This week, the difficulty of mining Bitcoin decreased but Ethereum increased. As of July 18, 2021, average difficulty for mining Bitcoin this week was 14.36T, decreased by 6.39% from last week. The average difficulty of mining Ethereum this week was 6669.91TH, increased by 2.01% from that of previous week.

The number of blocks in Bitcoin increased by 4.99%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks decreased by 1.48%. In the past week, Bitcoin mined 988 blocks, increased by 4.99% from the previous week. Among the top five pools were ViaBTC、AntPool、F2Pool、BTC.com、Binance Pool, these 5 pools mined 153、131、129、96 and 95 blocks respectively, accounting for 15.49%、13.26%、13.06%、9.72% and 9.62% of all Bitcoins mined this week. The Hashrate was 15.54EH/s、13.31EH/s、13.10EH/s、9.75EH/s and 9.65EH/s, respectively.

In the past week, Ethereum’s entire network mined 47200 blocks, decreased by 1.48% in the previous week. The top five pools were Ethermine, Spark Pool, F2pool Old, Hiveon Pool and BeePool, each mined 11974、9730、4449、3241 and 2613 blocks respectively, accounting for 25.3686%、20.6144%、9.4258%、6.8665% and 5.5360% of all Ethereum mined this week, respectively.

2.2 Activity Statistics

The average number of transactions per block decreased and the average block size of Bitcoin decreased. The average number of transactions per block decreased but the average block size of Ethereum increased this week. According to blockchain.info, from July 12, 2021- July 18, 2021, the average size of each block was 1.05 MB, decreased by 17.32% from last week; there were on average 1511 transactions recorded in each block, decreased by 13.46% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 186.5, decreased by 1.53%. The average size of each block was 56617.14bytes, decreased by 5.09% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 50.22%. Number of unconfirmed transactions in Ethereum increased by 3.71% from the previous week. As of July 18, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 3015, decreased by 50.22% from last week. There were 150333.11 unconfirmed transactions in the Ethereum network, increased by 3.71% from last week, with the lowest amount of unconfirmed transactions in the week being 29061 and the highest amount being 164405.

Total transaction fees of Bitcoin decreased but Ethereum increased. As of July 18, 2021, average transaction fees of Bitcoin this week was $2.188, decreased by 36.73% from last week. Average transaction fees of Ethereum this week was $4.315, incresead by 42.69% from last week.

The average number of distinct miners per day in Ethereum decreased. From July 12, 2021- July 18, 2021, the average number of distinct miners per day in Ethereum this week was 47.1, decreased by 1.46% from last week.

The number of nodes in Bitcoin increased by 11.71% ,The number of nodes in Ethereum increased by 59.62% this week. As of July 18, 2021, there were 12995 Bitcoin nodes, increased by 11.71% compared to last week, of which 1819 nodes were in U.S, 1660 nodes were in Germany, and 150 nodes were in China(№11), each accounting for 14.00%, 12.77% and 1.15% of the total number of Bitcoin nodes, respectively.

As of July 18, 2021, there were 6329 Ethereum nodes, increased by 59.62% from the previous week. Specifically, there were 2131 nodes in the U.S, 1007 nodes in Germany, and 548 nodes in China, each accounting for 33.67%, 15.91%, 8.66% 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 July 18, 2021, the total number of Bitcoin addresses was 74774917, increased by 124177 (0.17%).

LINK was the most active project on GitHub this week. From July 12, 2021 — July 18, 2021, Chainlink was the active project repository on GitHub with a total of 34 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 948k, 625k and 234k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 2.9million , 1.9million, and 1.4million followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Global payments brand Skrill expands crypto wallet services

Paysafe, the parent company of online money transfer service Skrill, announced this week that the payment platform has integrated an additional 20 cryptocurrencies into its digital wallet, providing users with another legacy onramp to digital assets. Beginning this week, customers outside the United States will have access to 35 cryptocurrencies in total, the company said. Crypto buy and sell services are also available in 48 U.S. states and territories.The newly supported cryptocurrencies include major DeFi assets like Aave, Balancer, Curve, Compound, Synthetix, Uniswap and Sushiswap. Polygon and Dogecoin (DOGE) were also added. “After a surge in overall activity in the industry we’re seeing more interest in cryptocurrency than ever from our digital wallet customers, both current and new,” said Rupinder Singh, a senior vice president with Paysafe. “Our aim is to make it ever easier for consumers to get started in crypto using Skrill.”

2. New Samsung service Paperless adds document disposal to enterprise blockchain

Samsung SDS, the information and communication technology (ICT) arm of Samsung, launched a new service named Paperless to provide reliability and transparency of documents in a cloud environment. Launched as a cloud-based blockchain-as-a-service (BaaS) solution for enterprises, Paperless manages sensitive documents such as contracts, consent forms and certificates on blockchain to prevent forgery and falsification. According to the official announcement, the new service can be used in various fields such as voting or tasks that require various proof documents.Paperless also enables the management of documents that need to be disposed of after a certain period by encrypting and storing sensitive or large-volume data in a separate server, only keeping the hash value of each data on the blockchain.Since all data history such as the creation, revision and disposal of documents is recorded on the blockchain in real-time, this design combining on-chain and off-chain technology addresses “the slowdown of blockchain’s transaction speed due to massive volumes of data,” the announcement reads.

3. Nifty’s Inc. launches social NFT platform with Warner Bros. partnership

The Nifty community plans to be an “inviting home base for new and experienced explorers of the NFT universe,” according to CEO and co-founder Jeff Marsilio. The debut of Nifty’s social NFT platform came with much fanfare on Monday after the company announced a major partnership with Warner Bros. and $10 million in seed investments from some of blockchain’s biggest venture firms. Through its Warner Bros. partnership, Nifty’s will launch a collection of limited-edition NFTs featuring characters from the upcoming movie Space Jam: A New Legacy, the company announced Monday. The movie will be released in theaters and for streaming on Friday, July 16.The Space Jam NFTs were developed with the technology of Palm NFT Studio, which was developed by Ethereum software company ConsenSys.

3.2 International Policies

1. ECB is looking to design a digital euro more energy-efficient than Bitcoin

The European Central Bank, or ECB, joins the growing club of crypto-friendly financial institutions as it announces the decision “to launch a project to prepare for possibly issuing a digital euro.” The ECB’s official tweet noted:“We will look at how a digital euro could be designed and distributed to everyone in the euro area.”According to a press release on July 14, the ECB’s governing council has launched the investigation phase of a digital euro project. This phase is planned to last for two years, during which time Eurogroup will design a digital currency focused on “users’ preferences and technical advice by merchants and intermediaries.”Sharing more insights, the ECB’s official statement also highlighted their success in identifying the various ways to protect it’s user’s privacy, in tune with the nation’s GDPR requirements. They added:“It has also shown that the energy needs of the infrastructure would be negligible compared with the energy consumption and environmental footprint of crypto-assets, such as bitcoin (BTC).”

2. Brazilian securities regulator approves Ether ETF

Brazil’s Comissão de Valores Mobiliários (CVM), the country’s securities regulator, has approved an Ether (ETH) exchange-traded fund (ETF), according to an announcement by QR Capital, the holding company of QR Asset Management.The fund, which trades under the ticker QETH11, will trade on Brazil’s highly reputable B3 stock exchange, which operates as a regional exchange and serves customers worldwide. QETH11 will use the same Ether index as that used by CME Group and will use institutional custodial services provided by the Winklevoss twins’ Gemini. Fernando Carvalho, CEO of QR Capital told Cointelegraph Brazil:”Brazilian regulators are recognizing the maturation of the crypto market and understanding that it is important to offer regulated products to investors looking forward to exploring these new asset classes. We hope that these signals from Brazil will encourage the SEC t

3. UAE to experiment and launch an in-house digital currency

The United Arab Emirates becomes the latest country to join the race for experimenting with an in-house digital currency. According to the three-year plan for 2023–2026 that announces the launch of its digital currency, the Central Bank of the UAE, or CBUAE, intends to stand among the top 10 central banks across the world.CBUAE’s strategy involves seven objectives to help drive the country’s digital transformation ambitions, primarily focused on financial services. Gulf News reported that this transformation will be heavily dictated by the latest iterations of artificial intelligence and big data solutions. While UAE’s innovation strategy is aimed at streamlining “inspection, monitoring and insurance systems” through technology, the government will involve the use of the UAE Pass, a digital identity system for keeping track of citizens “to bolster financial inclusion and easy access to financial services.”

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Blocknative got 12 million dollars in strategic investment from Ignition Fund leading,SuperNFT got 5 million dollars in A round investment from Picasso group leading.

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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