Huobi Research Weekly (Vol.181) (2021.8.30–2021.9.5）

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 12.08%, with 94 projects increased in value to varying degrees. According to coinmarketcap, as of September 5, 2021, the total market cap of cryptocurrencies was 2338.2 billion U.S.dollars, increased of 12.08%, and the total market cap of the top 100 cryptocurrencies was 2278.5 billion U.S. dollars, increased by 11.70% from last week. 2 cryptocurrency projects entered the top 100 this week, namely ZRX and ICX. As of September 5, 2021, Bitcoin was traded at 51753.41USD, 6.02% higher than its price last week. Ethereum was traded at 3952.13USD, 22.57% higher than its price last week.

The hashrate of Bitcoin decreased but 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 decreased. The average number of transactions per block increased but the average block size of Ethereum decreased this week. The average transaction fees of Bitcoin increased and Ethereum increased. CARD was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 126.3EH/s, decreased by 3.51% from the previous week. Average Hashrate for the entire Ethereum network was 661.6TH/s this week, increased by 3.17%. Average difficulty for mining Bitcoin this week was 17.61T, increased by 8.30% from last week. The average difficulty of mining Ethereum this week was 8423.76TH, increased by 3.12% from that of previous week.

In network activity, the average size of each block was 1.13MB, increased by 17.20% from last week; there were on average 1776 transactions recorded in each block, increased by 16.00% from the previous week. The average number of transactions per block in Ethereum this week was 186.0, increased by 1.64%. The average size of each block was 78602.28 bytes, decreased by 6.18% compared to last week. Average transaction fees of Bitcoin this week was $2.638, increased by 10.01% from last week. Average transaction fees of Ethereum this week was $40.978, incresead by 42.66% from last week. The total number of Bitcoin addresses was 76322773, increased by 224539 (0.30%). Cardstack 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, Hyype got 1.5 million dollars in seed round investment from Electric Capital leading，Octopus Network got 5 million dollars in A round investment from Continue、Youbi、DCG etc.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 12.08%, with 94 projects increased in value to varying degrees. According to coinmarketcap, as of September 5, 2021, the total market cap of cryptocurrencies was 2338.2 billion U.S.dollars, increased of 12.08%, and the total market cap of the top 100 cryptocurrencies was 2278.5 billion U.S. dollars, increased by 11.70% from last week, among which, FTM had the largest increased of 107.00%, bringing its market cap ranking from №73 to №50, XTZ had the largest decreased of -5.41%, bringing its market cap ranking from №30 to №37. In addition, there were 2 projects that entered TOP100, namely, ZRX (0x, increased 19.50%, Now №100), ICX (ICON, increased 30.49%, Now №91). As of September 5, 2021, Bitcoin was traded at 51753.41USD, 6.02% higher than its price last week. Ethereum was traded at 3952.13USD, 22.57% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 31.44% compared with the same period of last week. In this week, 73 of the top 100 projects increased in 24h trading volume, led by QNT with a weekly increased of 1540.13%; there were 27 projects decreased in their 24h trading volume, there were 14 projects that saw over 20% decrease in their 24h trading volume, while 7 projects fell by more than 50%. The most decresed project led by BTG, with a decreased of -86.87%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On September 5, 2021, the overall market cap of the top 10 cryptocurrencies was 1887.3billion USD, increased by 10.71% from last week, accounting for 80.72% of the total market capitalization of cryptocurrencies, decreased by 1.00% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 41.63%, decreased by 2.38% 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 Application project got the largest increase. As of September 5, 2021, the total market cap of coin projects reached 1303.4 billion USD, increased by 9.27%. The average market cap of coin projects reached 26.0 billion USD, increased by 9.27%. The total market cap of platform projects reached 685.1 billion USD, increased by 17.78%. The average market cap of platform projects reached 27.4 billion USD, increased by 13.07%. The total market cap of application class projects reached 221.7 billion USD, increased by 11.77%. The average market cap of application class projects reached 9.64 billion USD, increased by 16.63%. The total market cap of asset-backed token projects reached 68.1 billion USD, increased by 1.83%. The average market cap of asset-backed token projects reached 34.0 billion USD, increased by 1.83%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of September 5, 2021, among the top 100 projects, the number of coin class projects and asset-backed token class projects both remain the same, platform class increase 1, application class projects decrease 1. The largest overall market cap by segment was still coin projects, accounting for 57.20% 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 August 30, 2021- September 5, 2021, the average bitcoin Hashrate for the entire network reached 126.3EH/s, decreased by 3.51% from the previous week.

Average Hashrate for the entire Ethereum network was 661.6TH/s this week, increased by 3.17%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of September 5, 2021, average difficulty for mining Bitcoin this week was 17.61T, increased by 8.30% from last week. The average difficulty of mining Ethereum this week was 8423.76TH, increased by 3.12% from that of previous week.

The number of blocks in Bitcoin decreased by 8.51%,Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks decreased by 0.27%. In the past week, Bitcoin mined 1021 blocks, decreased by 8.51% from the previous week. Among the top five pools were AntPool、ViaBTC、Poolin、BTC.com、F2Pool, these 5 pools mined 175、131、121、101 and 98 blocks respectively, accounting for 17.14%、12.83%、11.85%、9.89% and 9.60% of all Bitcoins mined this week. The Hashrate was 21.91EH/s、16.40EH/s、15.15EH/s、12.65EH/s and 12.27EH/s, respectively.

In the past week, Ethereum’s entire network mined 47936 blocks, decreased by 0.27% in the previous week. The top five pools were Ethermine, Spark Pool, F2pool Old, Hiveon Pool and BeePool, each mined 10037、10024、5249、2910 and 2867 blocks respectively, accounting for 20.9383%、20.9112%、10.9500%、6.0706% and 5.9809% 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 but the average block size of Ethereum decreased this week. According to blockchain.info, from August 30, 2021- September 5, 2021, the average size of each block was 1.13MB, increased by 17.20% from last week; there were on average 1776 transactions recorded in each block, increased by 16.00% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 186.0, increased by 1.64%. The average size of each block was 78602.28 bytes, decreased by 6.18% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 89.29%. Number of unconfirmed transactions in Ethereum increased by 0.81% from the previous week. As of September 5, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 5247, increased by 89.29% from last week. There were 161058.2 unconfirmed transactions in the Ethereum network, increased by 0.81% from last week, with the lowest amount of unconfirmed transactions in the week being 26063 and the highest amount being 179541.

Total transaction fees of Bitcoin increased and Ethereum increased. As of September 5, 2021, average transaction fees of Bitcoin this week was $2.638, increased by 10.01% from last week. Average transaction fees of Ethereum this week was $40.978, incresead by 42.66% from last week.

The average number of distinct miners per day in Ethereum decreased. From August 30, 2021- September 5, 2021, the average number of distinct miners per day in Ethereum this week was 44.5, decreased by 5.52% from last week.

The number of nodes in Bitcoin decreased by 7.42% ,The number of nodes in Ethereum decreased by 26.77% this week. As of September 5, 2021, there were 10068 Bitcoin nodes, decreased by 7.42% compared to last week, of which 1836 nodes were in U.S, 1824 nodes were in Germany, and 137 nodes were in China(№11), each accounting for 18.24%, 18.12% and 1.36% of the total number of Bitcoin nodes, respectively.

As of September 5, 2021, there were 3866 Ethereum nodes, decreased by 26.77% from the previous week. Specifically, there were 1273 nodes in the U.S, 643 nodes in Germany, and 339 nodes in China, each accounting for 32.93%, 16.63%, 8.77% 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 September 5, 2021, the total number of Bitcoin addresses was 76322773, increased by 224539 (0.30%).

CARD was the most active project on GitHub this week. From August 30, 2021 — September 5, 2021, Cardstack 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 946k, 625k and 234k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 3.1million , 2.0million, and 1.5million followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. New Blockchain Lab aims to modernize the mortgage industry

Global business provider Zventus announced a new blockchain initiative on Monday called the “Mortgage Blockchain Lab.” The lab is meant to collate the resources of several mortgage experts, technology firms and academic institutions to collaborate on blockchain research and development focused on the mortgage sector. The California-based firm, whose product and service offerings span a broad business spectrum including business consultancy, human resource strategy and tech support, will work with its partners in this blockchain sandbox to develop and test new products and services.Early reports from the firm suggest that the costs of loans for financial organizations will be reduced by over 50% once the services are launched.Zventus president Angel Alban believes in the vast potential of blockchain to support the sector’s development:“There’s no doubt in blockchain’s ability to disrupt the mortgage industry. The capabilities of a secure, transparent ledger without a central intermediary is taking off in Europe and Asia and gaining significant traction in the Americas. We’re thrilled to be at the forefront of a technological revolution that will transform mortgage processing forever.”

2. Standard Chartered launches blockchain trade platform with Chinese fintech

United Kingdom-based multinational banking firm Standard Chartered has launched a blockchain-powered trade finance platform through a joint venture with Chinese supply chain finance technology provider Linklogis.Dubbed Olea, the platform will aim to meet the needs of institutional investors that are “seeking opportunities in an alternative asset class with businesses requiring supply chain financing,” according to a report from The Korea Herald published on Monday.The joint venture operating the platform will be headquartered in Singapore, where Ng from Standard Chartered’s SC Ventures will lead as its CEO. Letitia Chau, vice chairman and chief risk officer of Linklogis, will serve as deputy CEO. Olea is reportedly expected to help Standard Chartered raise its profile in global digital trade finance, and the choice to implement a blockchain infrastructure continues the bank’s ongoing engagement with the technology.

3. Major hotel in Swiss Alps now allows crypto payments

According to a report from Swiss news outlet Blick, guests at the Chedi Andermatt hotel are now allowed to settle bills of more than 200 Swiss francs — roughly $218 — using Bitcoin or Ether. Prices are still seemingly set in fiat to reduce any risk of volatility, with the hotel converting any cryptocurrency received immediately into francs.“We have long known that cryptocurrencies also have a future in hotel operations,” said the hotel’s general manager Jean-Yves Blatt. “In the course of the increasing spread and acceptance of cryptocurrency payments, we are proud to be one of the first Swiss luxury hotels to be able to offer our guests cryptocurrencies as a secure means of payment.”First opened in 2013, the Chedi Andermatt has 123 rooms and suites going for as low as 1,300 francs per night in the high season, or roughly 0.03 BTC or 0.45 ETH. According to data from Coinmap, there is also a vacation rental in the area accepting BTC.

3.2 International Policies

1. Australia, Singapore, Malaysia and South Africa launch joint CBDC pilot

The central banks of Australia, Singapore, Malaysia and South Africa have announced a joint initiative to trial international settlements using central bank digital currencies (CBDCs).The initiative, dubbed Project Dunbar, will prototype shared platforms enabling direct transfers between institutions using digital currencies issued by multiple central banks. The pilot’s findings will be used to inform the “development of global and regional platforms” in addition to supporting the G20’s roadmap for improving cross-border payments.Project Dunbar will be carried out in partnership with the Bank for International Settlements (BIS) Innovation Hub from its Singapore Center. The project will engage multiple partners to develop different DLT platforms and explore different designs that would enable central banks to share CBDC infrastructure.A joint announcement emphasizes the efficiency savings associated with distributed ledger technology (DLT)-based payments, stating:“These multi-CBDC platforms will allow financial institutions to transact directly with each other in the digital currencies issued by participating central banks, eliminating the need for intermediaries and cutting the time and cost of transactions.”

2. UK-based banking firm Standard Chartered joins Global Digital Finance patron board

Standard Chartered, a United Kingdom-based multinational banking firm, has joined an alliance of fintech companies and banks aimed at accelerating the adoption of cryptocurrency best practices.Standard Chartered said it would be joining crypto and digital finance industry membership body Global Digital Finance (GDF) Patron Board. As a member, the bank will help engage with international regulators and lawmakers as well as others in the industry to advocate for digital assets. “Thoughtful adoption of digital assets based on the principles of consumer protection and compliance can promote a more efficient and inclusive financial system,” said Standard Chartered’s global head of financial markets electronics trading and platforms Geoff Kot. “Banks have an ongoing responsibility to support the evolution of an open and trusted global financial architecture.”

3. Legislative Assembly of El Salvador approves $150M Bitcoin Trust

El Salvador’s Legislative Assembly has passed legislation creating a $150-million Bitcoin Trust and supporting the development of crypto infrastructure and services across the country. The bill had been passed, with 64 officials voting in favor and 14 opposing the trust’s creation. The trust is designed to facilitate the conversion of Bitcoin (BTC) into United States dollars and support the rollout of vital technological infrastructure enabling widespread adoption of crypto assets. The Development Bank of El Salvador (Bandesal) has been appointed to oversee the trust’s operation.The $150 million will be redirected from the country’s $500-million loan with the Central American Bank for Economic Integration (CABEI). The CABEI loan was originally taken for the purpose of economic recovery for small and medium-sized businesses.Of those funds, $23.3 million is earmarked to support the installation of government-backed crypto ATMs — allowing local citizens to exchange between Bitcoin and USD. But $30 million has also been designated to offer incentives to encourage the adoption of the government’s digital wallet, Chivo.

4.Weekly Investment Activities

2 investments activities took place in the blockchain industry this week, Hyype got 1.5 million dollars in seed round investment from Electric Capital leading，Octopus Network got 5 million dollars in A round investment from Continue、Youbi、DCG etc.

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