Huobi Research Weekly (Vol.175) (2021.7.19–2021.7.25)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 17.90%, with 87 projects increased in value to varying degrees. According to coinmarketcap, as of July 25, 2021, the total market cap of cryptocurrencies was 1511.3 billion U.S.dollars, increased of 17.90%, and the total market cap of the top 100 cryptocurrencies was 1391.6 billion U.S. dollars, increased by 10.12% from last week. 1 cryptocurrency projects entered the top 100 this week, namely BAKE. As of July 25, 2021, Bitcoin was traded at 35350.19USD, 11.21% higher than its price last week. Ethereum was traded at 2191.37USD, 15.70% lower than its price last week.

The hashrate of Bitcoin decreased but 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 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 98.95EH/s, decreased by 2.61% from the previous week. Average Hashrate for the entire Ethereum network was 525.51TH/s this week, increased by 1.91%. Average difficulty for mining Bitcoin this week was 13.76T, decreased by 4.18% from last week. The average difficulty of mining Ethereum this week was 6777.26TH, increased by 1.61% from that of previous week.

In network activity, the average size of each block was 983.2KB, decreased by 6.38% from last week; there were on average 1494 transactions recorded in each block, decreased by 1.13% from the previous week. The average number of transactions per block in Ethereum this week was 187.2, increased by 0.38%. The average size of each block was 60994.71 bytes, increased by 7.73% compared to last week. Average transaction fees of Bitcoin this week was $2.192, increased by 0.18% from last week. Average transaction fees of Ethereum this week was $3.882, decresead by 10.03% from last week. The total number of Bitcoin addresses was 74894872, increased by 119955 (0.16%). Chainlink was the most active project on GitHub this week, with 32 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, Magic got 27 million dollars in A round from Northzone leading,BlockArt got 1 million dollars in seed round investment from CoinFund leading.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 17.90%, with 87 projects increased in value to varying degrees. According to coinmarketcap, as of July 25, 2021, the total market cap of cryptocurrencies was 1511.3 billion U.S.dollars, increased of 17.90%, and the total market cap of the top 100 cryptocurrencies was 1391.6 billion U.S. dollars, increased by 10.12% from last week, among which, AXS had the largest increased of 130.09%, bringing its market cap ranking from №64 to №34, RUNE had the largest decreased of -14.47%, bringing its market cap ranking from №71 to №81. In addition, there were 1 projects that entered TOP100, namely, BAKE (BakeryToken, increased 7.94%, Now №100). As of July 25, 2021, Bitcoin was traded at 35350.19USD, 11.21% higher than its price last week. Ethereum was traded at 2191.37USD, 15.70% lower than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 20.41% compared with the same period of last week. In this week, 72 of the top 100 projects increased in 24h trading volume, led by ZIL with a weekly increased of 393.65%; there were 28 projects decreased in their 24h trading volume, there were 10 projects that saw over 20% decrease in their 24h trading volume, while 0 projects fell by more than 50%. The most decresed project led by DCR, with a decreased of -46.19%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On July 25, 2021, the overall market cap of the top 10 cryptocurrencies was 1177.6 billion USD, increased by 10.04% from last week, accounting for 77.92% of the total market capitalization of cryptocurrencies, decreased by 5.57% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 43.89%, decreased by 2.64% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Platform project got the largest increase. The average market cap of Platform project got the largest increase. As of Junly 25, 2021, the total market cap of coin projects reached 832.2 billion USD, increased by 10.56%. The average market cap of coin projects reached 17.3 billion USD, increased by 10.56%. The total market cap of platform projects reached 371.7 billion USD, increased by 13.08%. The average market cap of platform projects reached 15.4 billion USD, increased by 13.08%. The total market cap of application class projects reached 124.1 billion USD, increased by 4.77%. The average market cap of application class projects reached 4.96 billion USD, increased by 4.77%. The total market cap of asset-backed token projects reached 63.6 billion USD, decreased by 0.36%. The average market cap of asset-backed token projects reached 21.2 billion USD, decreased by 0.36%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of July 25, 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 59.80% 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 July 19, 2021- July 25, 2021, the average bitcoin Hashrate for the entire network reached 98.95EH/s, decreased by 2.61% from the previous week.

Average Hashrate for the entire Ethereum network was 525.51TH/s this week, increased by 1.91%.

This week, the difficulty of mining Bitcoin decreased but Ethereum increased. As of July 25, 2021, average difficulty for mining Bitcoin this week was 13.76T, decreased by 4.18% from last week. The average difficulty of mining Ethereum this week was 6777.26TH, increased by 1.61% from that of previous week.

The number of blocks in Bitcoin increased by 4.15%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.00%. In the past week, Bitcoin mined 1029 blocks, increased by 4.15% from the previous week. Among the top five pools were AntPool、Poolin、ViaBTC、F2Pool 、BTC.com, these 5 pools mined 172、121、118、108 and 107 blocks respectively, accounting for 16.72%、11.76%、11.47%、10.50% and 10.40% of all Bitcoins mined this week. The Hashrate was 16.70EH/s、11.75EH/s、11.46EH/s、10.48EH/s and 10.39EH/s, respectively.

In the past week, Ethereum’s entire network mined 47202 blocks, increased by 0.00% in the previous week. The top five pools were Ethermine, Spark Pool, F2pool Old, Hiveon Pool and BeePool, each mined 11536、10140、4723、3083 and 2617 blocks respectively, accounting for 24.4396%、21.4821%、10.0059%、6.5315% and 5.5443% 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 increased and the average block size of Ethereum increased this week. According to blockchain.info, from July 19, 2021- July 25, 2021, the average size of each block was 983.2KB, decreased by 6.38% from last week; there were on average 1494 transactions recorded in each block, decreased by 1.13% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 187.2, increased by 0.38%. The average size of each block was 60994.71 bytes, increased by 7.73% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 20.83%. Number of unconfirmed transactions in Ethereum decreased by 0.84% from the previous week. As of July 25, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 2387, decreased by 20.83% from last week. There were 149065.51 unconfirmed transactions in the Ethereum network, decreased by 0.84% from last week, with the lowest amount of unconfirmed transactions in the week being 22939 and the highest amount being 166295.

Total transaction fees of Bitcoin increased but Ethereum decreased. As of July 25, 2021, average transaction fees of Bitcoin this week was $2.192, increased by 0.18% from last week. Average transaction fees of Ethereum this week was $3.882, decresead by 10.03% from last week.

The average number of distinct miners per day in Ethereum decreased. From July 19, 2021- July 25, 2021, the average number of distinct miners per day in Ethereum this week was 45.1, decreased by 4.25% from last week.

The number of nodes in Bitcoin decreased by 3.70% ,The number of nodes in Ethereum increased by 2.04% this week. As of July 25, 2021, there were 12514 Bitcoin nodes, decreased by 3.70% compared to last week, of which 1795 nodes were in U.S, 1655 nodes were in Germany, and 148 nodes were in China(№11), each accounting for 14.34%, 13.23% and 1.18% of the total number of Bitcoin nodes, respectively.

As of July 25, 2021, there were 6458 Ethereum nodes, increased by 2.04% from the previous week. Specifically, there were 2217 nodes in the U.S, 906 nodes in Germany, and 556 nodes in China, each accounting for 34.33%, 14.03%, 8.61% 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 25, 2021, the total number of Bitcoin addresses was 74894872, increased by 119955 (0.16%).

LINK was the most active project on GitHub this week. From July 19, 2021 — July 25, 2021, Chainlink was the active project repository on GitHub with a total of 32 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 947k, 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. Etherisc onboards 17K Kenyan farmers covered by blockchain-based crop insurance

An insurance collaboration between decentralized protocol Etherisc and microinsurance issuer ACRE Africa has allowed thousands of farmers in Kenya to receive coverage for weather-related risks.Etherisc and ACRE Africa said they had processed insurance payouts for some of the more than 17,000 smallholder farmers in Kenya covered under the collaboration. The Chainlink Community Grant, the Ethereum Foundation and the Decentralized Insurance Foundation helped fund the project, which was first announced in November 202.“We’re thrilled that after months of hard work on this initiative, we’re seeing the fruits of our labour — which has a tangible social impact on farmers in Kenya who are threatened by the devastating effects of climate change,” said Etherisc chief inclusive officer Michiel Berende. “The solution that we built with our valued partners at ACRE Africa overcomes a number of challenges associated with traditional crop insurance — delayed payments, high premium costs, and lack of transparency.”

2. Polygon launches blockchain gaming and NFT studio

Ethereum (ETH) infrastructure developer Polygon has spun off a new subsidiary to advance its work in blockchain gaming and nonfungible tokens, or NFTs, offering further insight into the company’s long-term growth strategy.The newly formed Polygon Studios has three core objectives: establish Polygon’s position as the leader in decentralized gaming; create a brand that attracts developers and investors to its NFT ecosystem; and position Polygon as the best venue for transitioning to Web 3.0.Through an initiative called Polygon Gaming Studio, the company aims to help developers create and market decentralized games. A separate initiative, Polygon NFT Studio, aims to help brands and intellectual property owners launch customized digital collectibles and marketplaces.

3. South China Morning Post to tokenize 118-year-old archive with NFTs

Veteran Hong Kong-based newspaper South China Morning Post (SCMP) is creating a series of NFTs using a new token standard called “ARTIFACT,” designed to preserve historical assets on the blockchain.In its ARTIFACT Litepaper, SCMP presents an overview of the project, which is a standardized metadata structure that can be used to ensure that key moments from SCMP’s 118-year-old archive of media assets can be preserved through distributed ownership and circulation.Gary Liu, SCMP’s CEO, has said that “blockchain offers immense potential to immutably preserve journalism that witnesses and explains history. The ‘ARTIFACT’ project is an opportunity to discover, collect, showcase, trade, and reanimate meaningful moments and objects from our collective human experience.”

3.2 International Policies

1. Study suggests Canadian CBDC could promote digital innovation within the country

A study released by Canada’s central bank, Banque du Canada, has noted a number of favorable reasons that the country could benefit from its own Central Bank Digital Currency, or CBDC.The document laid out two scenarios that might result in the bank issuing a CBDC at some future date. One would be if citizens were no longer widely using cash within the country for reasons that were left unspecified. The other could be if a digital currency, public or private, were to become so widely adopted as to threaten the sovereignty of Canada’s existing central currency. The document acknowledged a number of potential benefits inherent to the adoption of a CBDC. Namely that the technology could have the same level of safety as cash while allowing for use in payment systems for online transactions and peer-to-peer transfers. When compared to payment options like credit or debit cards, a CBDC would also not necessarily have the same type of transaction fees for retailers:“A CBDC could be a simpler competition policy tool because it would provide an alternative low-cost payment instrument for customers and merchants. This would help bring down the interchange fees charged by the established networks.”

2. New EU proposal looks to tighten regulations for sending cryptocurrency

The European Commission has submitted a new proposal that would require crypto-asset service providers to collect additional Anti-Money Laundering information from those who utilize cryptocurrency for money transfers. The stated purpose of this proposal is to prevent the further propagation of money laundering activity within the European Union.Under this proposal, service providers conducting transfers must have the name of the originator of the transfer, the account number, where the account exists and where it is used to process the transaction. The originator’s address, official personal document number, customer ID number, or date and place of birth would also be required under the proposal. Service providers would similarly need to ensure that the name and account number of the beneficiary are included with the transfer, along with information about where that account exists. The beneficiary’s crypto-asset provider would also need procedures in place to detect whether the information for the originator of the transfer is included or is missing.

3. US megabank JPMorgan to hire more blockchain talent

Major American investment bank JPMorgan is upping its blockchain hiring spree by posting a series of new blockchain-related job openings.JPMorgan has opened multiple positions to pursue its global blockchain development efforts, including job postings targeting blockchain-focused software developers, engineers, marketers and auditors. A number of applications specifically target talent for JPMorgan’s digital currency-focused Onyx division, as well as Liink, the company’s proprietary blockchain-based interbank data network. One of the newly opened positions, a blockchain platform software engineer in Jersey City, New Jersey seeks experts specializing in blockchain security technologies, proof-of-stake (PoS) algorithms, as well as experience with major cryptocurrencies like Bitcoin (BTC) and Ether (ETH).

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Magic got 27 million dollars in A round from Northzone leading,BlockArt got 1 million dollars in seed round investment from CoinFund 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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