Huobi Research Weekly (Vol.180) (2021.8.23–2021.8.29)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 1.88%, with 59 projects decreased in value to varying degrees. According to coinmarketcap, as of August 29, 2021, the total market cap of cryptocurrencies was 2086.2 billion U.S.dollars, decreased of 1.88%, and the total market cap of the top 100 cryptocurrencies was 2039.9 billion U.S. dollars, decreased by 0.33% from last week. 5 cryptocurrency projects entered the top 100 this week, namely OMG, ZEN, MDX, CELO and PERP. As of August 29, 2021, Bitcoin was traded at 48829.83USD, 0.96% lower than its price last week. Ethereum was traded at 3227USD, 0.39% lower 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 but 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 130.9EH/s, increased by 5.06% from the previous week. Average Hashrate for the entire Ethereum network was 641.22TH/s this week, increased by 3.88%. Average difficulty for mining Bitcoin this week was 16.26T, increased by 4.57% from last week. The average difficulty of mining Ethereum this week was 8168.64TH, increased by 3.83% from that of previous week.

In network activity, the average size of each block was 964.2KB, decreased by 8.17% from last week; there were on average 1531 transactions recorded in each block, increased by 0.99% from the previous week. The average number of transactions per block in Ethereum this week was 183.0, decreased by 2.87%. The average size of each block was 83783.28 bytes, increased by 18.49% compared to last week. Average transaction fees of Bitcoin this week was $2.398, decreased by 6.07% from last week. Average transaction fees of Ethereum this week was $28.725, incresead by 159.74% from last week. The total number of Bitcoin addresses was 76098234, increased by 393704 (0.52%). Chainlink was the most active project on GitHub this week, with 26 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, DareNFT got seed round investment from Kyber Network,Euler got 8 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 1.88%, with 59 projects decreased in value to varying degrees. According to coinmarketcap, as of August 29, 2021, the total market cap of cryptocurrencies was 2086.2 billion U.S.dollars, decreased of 1.88%, and the total market cap of the top 100 cryptocurrencies was 2039.9 billion U.S. dollars, decreased by 0.33% from last week, among which, REV had the largest increased of 77.62%, bringing its market cap ranking from №94 to №68, XDC had the largest decreased of -22.57%, bringing its market cap ranking from №62 to №71. In addition, there were 5 projects that entered TOP100, namely, OMG (OMG Network, increased 5.88%, Now №99), MDX (Mdex, increased 9.18%, Now №96), ZEN (Horizen, increased 17.21%, Now №94), CELO (Celo, increased 32.42%, Now №85), PERP (Perpetual Protocol, increased 44.44%, Now №89). As of August 29, 2021, Bitcoin was traded at 48829.83USD, 0.96% lower than its price last week. Ethereum was traded at 3227USD, 0.39% lower than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 1.46% compared with the same period of last week. In this week, 43 of the top 100 projects increased in 24h trading volume, led by BTG with a weekly increased of 1159.09%; there were 57 projects decreased in their 24h trading volume, there were 39 projects that saw over 20% decrease in their 24h trading volume, while 9 projects fell by more than 50%. The most decresed project led by TEL, with a decreased of -80.87%.

The top 10 cryptocurrencies’ market value decreased, the market share distribution remained stable. On August 29, 2021, the overall market cap of the top 10 cryptocurrencies was 1704.7 billion USD, decreased by 0.18% from last week, accounting for 81.71% of the total market capitalization of cryptocurrencies, increased by 1.39% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 44.00%, increased by 0.41% 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 August 29, 2021, the total market cap of coin projects reached 1192.8 billion USD, decreased by 0.73%. The average market cap of coin projects reached 23.8 billion USD, decreased by 0.73%. The total market cap of platform projects reached 581.7 billion USD, increased by 0.52%. The average market cap of platform projects reached 24.2 billion USD, increased by 0.52%. The total market cap of application class projects reached 198.4 billion USD, decreased by 0.89%. The average market cap of application class projects reached 8.26 billion USD, decreased by 0.89%. The total market cap of asset-backed token projects reached 66.9 billion USD, increased by 1.38%. The average market cap of asset-backed token projects reached 33.4 billion USD, increased by 1.38%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of August 29, 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 58.47% 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 August 23, 2021- August 29, 2021, the average bitcoin Hashrate for the entire network reached 130.9EH/s, increased by 5.06% from the previous week.

Average Hashrate for the entire Ethereum network was 641.22TH/s this week, increased by 3.88%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of August 29, 2021, average difficulty for mining Bitcoin this week was 16.26T, increased by 4.57% from last week. The average difficulty of mining Ethereum this week was 8168.64TH, increased by 3.83% from that of previous week.

The number of blocks in Bitcoin decreased by 1.50%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.19%. In the past week, Bitcoin mined 1116 blocks, decreased by 1.50% from the previous week. Among the top five pools were AntPool、Poolin、ViaBTC、F2Pool、Foundry USA、, these 5 pools mined 219、153、135、106 and 93 blocks respectively, accounting for 19.62%、13.71%、12.10%、9.50% and 8.33% of all Bitcoins mined this week. The Hashrate was 25.89EH/s、18.09EH/s、15.96EH/s、12.53EH/s and 10.99EH/s, respectively.

In the past week, Ethereum’s entire network mined 48068 blocks, increased by 0.19% in the previous week. The top five pools were Ethermine, Spark Pool, F2pool Old, Hiveon Pool and BeePool, each mined 10282、10137、4934、2914 and 2772 blocks respectively, accounting for 21.3905%、21.0889%、10.2646%、6.0622% and 5.7668% 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 decreased but the average block size of Ethereum increased this week. According to blockchain.info, from August 23, 2021- August 29, 2021, the average size of each block was 964.2KB, decreased by 8.17% from last week; there were on average 1531 transactions recorded in each block, increased by 0.99% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 183.0, decreased by 2.87%. The average size of each block was 83783.28 bytes, increased by 18.49% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 7.51%. Number of unconfirmed transactions in Ethereum increased by 1.89% from the previous week. As of August 29, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 2772, decreased by 7.51% from last week. There were 159763.4 unconfirmed transactions in the Ethereum network, increased by 1.89% from last week, with the lowest amount of unconfirmed transactions in the week being 34174 and the highest amount being 200846.

Total transaction fees of Bitcoin decreased but Ethereum increased. As of August 29, 2021, average transaction fees of Bitcoin this week was $2.398, decreased by 6.07% from last week. Average transaction fees of Ethereum this week was $28.725, incresead by 159.74% from last week.

The average number of distinct miners per day in Ethereum decreased. From August 23, 2021- August 29, 2021, the average number of distinct miners per day in Ethereum this week was 47.1, decreased by 2.69% from last week.

The number of nodes in Bitcoin decreased by 13.37% ,The number of nodes in Ethereum increased by 3.33% this week. As of August 29, 2021, there were 10875 Bitcoin nodes, decreased by 13.37% compared to last week, of which 1860 nodes were in U.S, 1810 nodes were in Germany, and 138 nodes were in China(№11), each accounting for 17.10%, 16.64% and 1.26% of the total number of Bitcoin nodes, respectively.

As of August 29, 2021, there were 5279 Ethereum nodes, increased by 3.33% from the previous week. Specifically, there were 1803 nodes in the U.S, 822 nodes in Germany, and 439 nodes in China, each accounting for 34.15%, 15.57%, 8.32% 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 August 29, 2021, the total number of Bitcoin addresses was 76098234, increased by 393704 (0.52%).

LINK was the most active project on GitHub this week. From August 23, 2021 — August 29, 2021, Chainlink was the active project repository on GitHub with a total of 26 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 946k, 625k and 234k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 3.1million , 1.9million, and 1.4million followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. Microsoft wins US patent for ‘ledger-independent token service’

American tech giant Microsoft has won a blockchain-related patent for techniques for implementing a cross-chain token management system.The United States Patent and Trademark Office (USPTO), the agency granted the patent to Microsoft’s subsidiary Microsoft Technology Licensing on Aug. 24.The patent describes a “ledger-independent token service,” or a software service enabling individuals and organizations to create and manage tokens across multiple distributed ledger networks and platforms. Examples of such platforms in the patent filing included major blockchain platform Ethereum, IBM-backed Hyperledger Fabric, JPMorgan’s enterprise blockchain platform Quorum, R3 Corda and Chain Core.The described computer system aims to provide the user with one or more “token templates,” with each of those corresponding to a type of physical or digital asset. The ledger-independent token service is designed to act as a single interface for managing the lifecycle of tokens across multiple blockchains, allowing developers to write code for transacting and managing tokens “ in a manner that is agnostic of the underlying distributed ledger networks.”

2. Fetch.ai launches NFT platform for AI-generated art

Blockchain artificial intelligence lab Fetch.ai has launched a new NFT marketplace for AI-generated art, giving users the ability to create digital collectibles in a collaborative setting through machine learning technology. The new platform, dubbed Colearn Paint, allows groups of creators to automatically generate and collectively own NFTs designed by a machine learning algorithm. The platform is geared towards “abstract compositions,” according to Humayun Sheikh, CEO of Fetch.ai, who cited “collective learning” as a major trend for the future.Collective learning is a concept within artificial intelligence that describes the application of deep learning algorithms to data and privacy.Users of Colearn Paint will be taken through a three-step process for creating randomly generated NFTs. The first step entails bidding through a dutch auction to participate in the collective learning process. The winning bidders will input a “randomness pattern” and select art from the prearranged AI-generated options. The final step is the creation and sale of the NFT, which will allow users to distribute the profits among themselves.

3. PayPal launches crypto services for UK customers

Beginning this week, residents of the United Kingdom will be able to buy, hold and sell cryptocurrencies through PayPal for the first time — marking a significant milestone for a company that began offering digital asset services less than a year ago. The global payments provider announced Sunday that U.K. customers will soon have access to Bitcoin (BTC), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) through PayPal’s website and mobile app. The announcement marks the first expansion of PayPal’s cryptocurrency services beyond the United States. By offering its cryptocurrency services to U.K. residents, PayPal could play a role in increasing exposure to digital assets in the country. It’s reported that, among all European countries, PayPal penetration is highest in the U.K. at over 2 million monthly active users.

3.2 International Policies

1. Kyrgyzstan reportedly introduces regulations for crypto exchanges

The government of Kyrgyzstan is moving forward with cryptocurrency adoption by introducing a national regulatory framework for crypto trading platforms.Kyrgyzstan’s State Service for Regulation and Supervision of Financial Markets (Gosfinnadzor), a regulatory agency operating under the Ministry of Economy and Finance, has developed a draft provision for regulating crypto exchanges, local news agency 24.kg reported on Wednesday.The newly proposed regulations reportedly aim to establish the legal status of crypto exchanges operating in Kyrgyzstan, functions, responsibilities and compliance requirements, including the necessary registration with the unified state register. The rules also require crypto exchange service providers to ensure measures to counter illicit activities like money laundering and terrorism financing.Gosfinnadzor reportedly said that the new framework would reduce risks and assist in the development of innovative technologies and the formation of a digital economy in Kyrgyzstan. The rules would also help to bring about a new financial ecosystem that would include the participation of a wider range of players like qualified investors and businesses, the authority noted.

2. Thai SEC proposes new rules for digital asset custodians

The Securities and Exchange Commission (SEC) of Thailand continues introducing new regulations for the cryptocurrency industry, citing investor protection concerns.The Thai SEC proposed a set of additional regulations related to custody of investors’ cryptocurrency holdings held by digital asset business operators. The newly proposed rules refer to custody of fiat money for digital asset accounts as well as cryptocurrency lending, or earning interest on crypto holdings.The SEC is specifically looking to prohibit crypto companies from using investor assets for the “benefit of another client or other persons,” or seeking benefits from both investors’ fiat money and digital assets, including digital lending to other persons. “Seeking benefits from clients’ fiat money shall be prohibited except in the form of deposit with commercial banks,” the proposal reads.The new rules also propose a new framework for the withdrawal and transfer of fiat money from digital asset accounts, requiring compliance with the principles of “decentralized approval authority, multi-sign approval authority, and check and balance.” According to the regulator, the rules would strengthen investor protection and the reliability of crypto service providers, ensuring that records of investors’ holdings are accurate and updated.

3. Australia and Singapore conclude digital verification blockchain pilot

The Australian Border Force (ABF), Infocomm Media Development Authority of Singapore (IMDA) and Singapore Customs, along with other industry representations, have concluded a blockchain trial project analyzing the status of the countries’ digital verification systems in issuing and verifying trade documents.The collaborative venture was a part of the Australia–Singapore Digital Economy Agreement — an initiative designed to increase the efficiency of trade between the two countries, as well as to minimize economic friction in cross-border payments.The interoperability of the two digital verification systems — the ABF’s Intergovernmental Ledger and IMDA’s TradeTrust reference implementation — was analyzed to understand the possibility of creating “high integrity digital trade documents that can be instantly authenticated, provenance traced, and digitally processed.”According to the official release, “QR-codes embedded with unique proofs are inserted into digital certificates of origin (COO), enabling immediate verification for authenticity and integrity of the document when scanned or machine-read.”

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, DareNFT got seed round investment from Kyber Network,Euler got 8 million dollars in A round investment from Paradigm leading.

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