Huobi Research Weekly (Vol.185) (2021.10.4–2021.10.10)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 19.82%, with 81 projects increased in value to varying degrees. According to coinmarketcap, as of October 10, 2021, the total market cap of cryptocurrencies was 2294.1 billion U.S.dollars, increased of 19.82%, and the total market cap of the top 100 cryptocurrencies was 2204.7 billion U.S. dollars, increased by 18.07% from last week. 4 cryptocurrency projects entered the top 100 this week, namely RENBTC, MDX, DYDX and NEXO. As of October 10, 2021, Bitcoin was traded at 54771.58USD, 26.85% higher than its price last week. Ethereum was traded at 3425.85USD, 12.05% higher 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 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 and Ethereum increased. LINK was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 145.2EH/s, increased by 4.84% from the previous week. Average Hashrate for the entire Ethereum network was 735.96TH/s this week, increased by 3.45%. Average difficulty for mining Bitcoin this week was 19.51T, increased by 4.84% from last week. The average difficulty of mining Ethereum this week was 9450.49TH, increased by 4.11% from that of previous week.

In network activity, the average size of each block was 1.20MB, increased by 10.09% from last week; there were on average 1879 transactions recorded in each block, increased by 10.66% from the previous week. The average number of transactions per block in Ethereum this week was 193.6, increased by 7.26%. The average size of each block was 85813.00 bytes, increased by 2.64% compared to last week. Average transaction fees of Bitcoin this week was $3.268, increased by 30.25% from last week. Average transaction fees of Ethereum this week was $24.269, incresead by 23.24% from last week. The total number of Bitcoin addresses was 77259738, increased by 487183(0.63%). Chainlink was the most active project on GitHub this week, with 69 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.

According to public information statistics, there have been 53 investment and financing in the past two weeks, with a total amount of 926 million US dollars.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 19.82%, with 81 projects increased in value to varying degrees. According to coinmarketcap, as of October 10, 2021, the total market cap of cryptocurrencies was 2294.1 billion U.S.dollars, increased of 19.82%, and the total market cap of the top 100 cryptocurrencies was 2204.7 billion U.S. dollars, increased by 18.07% from last week, among which, SHIB had the largest increased of 269.58%, bringing its market cap ranking from №47 to №20, ATOM had the largest decreased of -17.67%, bringing its market cap ranking from №20 to №25. In addition, there were 4 projects that entered TOP100, namely, NEXO (Nexo, increased 15.82%, Now №98), DYDX (dYdX, increased 17.98%, Now №82), RENBTC (renBTC, increased 30.54%, Now №99), MDX (Mdex, increased 45.11%, Now №90). As of October 10, 2021, Bitcoin was traded at 54771.58USD, 26.85% higher than its price last week. Ethereum was traded at 3425.85USD, 12.05% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 11.25% compared with the same period of last week. In this week, 28 of the top 100 projects increased in 24h trading volume, led by STX with a weekly increased of 3005.48%; there were 72 projects decreased in their 24h trading volume, there were 50 projects that saw over 20% decrease in their 24h trading volume, while 23 projects fell by more than 50%. The most decresed project led by HT, with a decreased of 92.61%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On October 10, 2021, the overall market cap of the top 10 cryptocurrencies was 1837.8 billion USD, increased by 19.18% from last week, accounting for 80.11% of the total market capitalization of cryptocurrencies, decreased by 0.43% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 44.98%, increased by 2.49% from last week.

Source: coinmarketcap

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Coin project got the largest increase. The average market cap of Application project got the largest increase. As of October 10, 2021, the total market cap of coin projects reached 1365.2 billion USD, increased by 23.50%. The average market cap of coin projects reached 24.8 billion USD, increased by 21.25%. The total market cap of platform projects reached 586.0 billion USD, increased by 9.65%. The average market cap of platform projects reached 26.6 billion USD, increased by 9.65%. The total market cap of application class projects reached 182.7 billion USD, increased by 16.81%. The average market cap of application class projects reached 9.13 billion USD, increased by 28.50%. The total market cap of asset-backed token projects reached 70.7 billion USD, decreased by 0.37%. The average market cap of asset-backed token projects reached 23.5 billion USD, decreased by 0.37%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of October 10, 2021, among the top 100 projects, the number of coin class projects increase 1, asset-backed token class projects and platform class remain the same, and application class decrease 2. The largest overall market cap by segment was still coin projects, accounting for 61.92% 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 October 4, 2021- October 10, 2021, the average bitcoin Hashrate for the entire network reached 145.2EH/s, increased by 4.84% from the previous week.

Average Hashrate for the entire Ethereum network was 735.96TH/s this week, increased by 3.45%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of October 10, 2021, average difficulty for mining Bitcoin this week was 19.51T, increased by 4.84% from last week. The average difficulty of mining Ethereum this week was 9450.49TH, increased by 4.11% from that of previous week.

The number of blocks in Bitcoin decreased by 3.91%, Top 5 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks decreased by 0.39%. In the past week, Bitcoin mined 1007 blocks, decreased by 3.91% from the previous week. Among the top five pools were F2Pool、AntPool、Poolin、ViaBTC、Foundry USA, these 5 pools mined 177、157、147、117 and 107 blocks respectively, accounting for 17.58%、15.59%、14.70%、11.62% and 10.63% of all Bitcoins mined this week. The Hashrate was 24.68EH/s、21.89EH/s、20.64EH/s、 16.32EH/s and 14.92EH/s, respectively.

In the past week, Ethereum’s entire network mined 45418 blocks, decreased by 0.39% in the previous week. The top five pools were Ethermine, F2pool Old, BeePool, Hiveon Pool and Nanopool, each mined 11105、8381、3864、3836 and 2259 blocks respectively, accounting for 24.4507%、18.4530%、8.5076%、8.4460% and 4.9738% 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 decreased. The average number of transactions per block increased and the average block size of Ethereum increased this week. According to blockchain.info, from October 4, 2021- October 10, 2021, the average size of each block was 1.20MB, increased by 10.09% from last week; there were on average 1879 transactions recorded in each block, increased by 10.66% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 193.6, increased by 7.26%. The average size of each block was 85813.00 bytes, increased by 2.64% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 189.88%. Number of unconfirmed transactions in Ethereum increased by 2.39% from the previous week. As of October 10, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 10888, increased by 189.88% from last week. There were 168420.89 unconfirmed transactions in the Ethereum network, increased by 2.39% from last week, with the lowest amount of unconfirmed transactions in the week being 26658 and the highest amount being 200041.

Total transaction fees of Bitcoin increased and Ethereum increased. As of October 10, 2021, average transaction fees of Bitcoin this week was $3.268, increased by 30.25% from last week. Average transaction fees of Ethereum this week was $24.269, incresead by 23.24% from last week.

The average number of distinct miners per day in Ethereum increased. From October 4, 2021- October 10, 2021, the average number of distinct miners per day in Ethereum this week was 42.8, increased by 0.94% from last week.

The number of nodes in Bitcoin increased by 19.10% ,The number of nodes in Ethereum increased by 2.04% this week. As of October 10, 2021, there were 13082 Bitcoin nodes, increased by 19.10% compared to last week, of which 1852 nodes were in U.S, 1780 nodes were in Germany, and 133 nodes were in China(№10), each accounting for 14.16%, 13.61% and 1.02% of the total number of Bitcoin nodes, respectively.

As of October 10, 2021, there were 3744 Ethereum nodes, increased by 2.04% from the previous week. Specifically, there were 1200 nodes in the U.S, 615 nodes in Germany, and 259 nodes in China, each accounting for 32.05%, 16.43%, 6.92% 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 October 10, 2021, the total number of Bitcoin addresses was 77259738, increased by 487183(0.63%).

Chainlink was the most active project on GitHub this week. From October 4, 2021 — October 10, 2021, Chainlink was the active project repository on GitHub with a total of 69 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 944k, 625k and 234k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and Ethereum, with 3.3million , 2.0million, and 1.6million followers, respectively.

3. Weekly Blockchain Dynamics

3.1 Mainstream project dynamics

1. The Ethereum developer test network focusing on the merger of 1.0 and 2.0 has been launched

Ben Edgington, a consensys researcher and developer of Ethereum 2.0, updated the latest progress of the merge in the “what’s new in ETH2” database on hackmd, saying that the eth1-eth2 merge developer test network currently contains three eth 1 clients (Executive clients) and four eth 2 clients (consensus clients), The conversion from proof of work (POW) to proof of stake (POS) has been passed, and transactions are running and processing.

2. NEAR launches private sharding scheme for enterprises

This scheme does not require users to develop independent systems according to their own conditions, but can directly realize the interaction between different fragments through authentication on the public chain. When conducting transactions, different enterprises can view some of the information stored in the sharding by calling the contract, and will not lead to the disclosure of other private information. Near protocol aims to create a fully fragmented and scalable POS blockchain. The team has released only some large-scale fragmentation system implementations in the world.

3. IPFs client go IPFs releases version 0.10.0, focusing on IPLD update

The official go language implementation of the distributed storage protocol IPFs, go IPFs, has released a version 0.10.0 update, which has made some major changes to the internal of IPLD (interplanetary linked data), making it easier to work with non unixfs DAG than before. It also provides a variety of new commands and configuration options, and fixes some key security problems.

4. The total lock up volume of Ethereum L2 exceeded US $3 billion

As of the morning of October 10, the total lock up volume was US $3.22 billion. Among them, the amount of arbitrum network lock up is US $1.83 billion, accounting for 56.91% of the total L2 lock up.

4. The chief technology officer of props and members of the lot community jointly founded the lot trading platform, lot exchange

The platform will automatically generate the corresponding virtual character image according to the information in the location. The user can also switch to the original location with one click. In addition, the platform also shows the attributes and rarity of each location. The platform currently supports platform native orders and opensea orders, and 1% of the transaction fee will be donated to the community Treasury.

3.2 International industry dynamics

1. The Bank for International Settlements: CBDC can complete cross-border payment and settlement in seconds, and the cost is 50% lower than that of commercial bank network

The bank for International Settlements (BIS) released a report that the common prototype platform for the settlement of multiple central bank digital currencies (mcbdc) can complete cross-border payment and settlement operations in a few seconds, rather than a few days required by the existing commercial bank network, and the operation cost can be reduced by half. At the same time, another report said that the impact of CBDC on the banking industry is controllable, and its impact on the banking industry can be mitigated by limiting the holding or trading of CBDC, limiting or inhibiting the combination of remuneration.

2. The release of the digital currency enaira of the Central Bank of Nigeria was delayed due to litigation

The Central Bank of Nigeria (CBN) postponed the launch of the central bank’s digital currency enaira originally planned for October 1. However, the Nigerian company enaira Payment Solutions Limited filed a lawsuit against CBN on the trademark infringement of the digital currency name eniara of the Central Bank of Nigeria. The Federal High Court of Nigeria did not reject the plaintiff’s motion to stop starting CBDC, but ruled that the introduction of digital currency was in the national interest and approved the introduction of central bank digital currency enaira. The case will be further heard on October 11, 2021.

3. Cryptopunk 9997 closed the auction at Christie’s for HK $33.85 million

Cryptopunk 9997 traded at HK $33.85 million, far exceeding Christie’s estimated maximum transaction price of HK $6.8 million. Cryptopunk 9997 was the NFT collection of Hong Kong actor Yu wenle before the auction. In addition, in the auction, cryptopunk 7249 was traded at HK $4.75 million, cryptopunk 6943 at HK $6 million, cryptopunk 8191 at HK $8.89 million, cryptopunk 7519 at HK $5 million and cryptopunk 8770 at HK $8.89 million, all exceeding their estimated maximum transaction prices.

4. Visa proposes a scheme to enhance interoperability between CBDC and stable currency

Visa, a payment company, proposed an interoperability scheme of universal payment channel (UPC) in the white paper “universal payment channel: an interoperability platform for digital currency”. Visa said that UPC technology can play an important role between private stable currency and public CBDC (central bank digital currency) and realize interoperability with CBDC. The protocol will allow an entity called UPC hub to pay as a trusted gateway.

3.3 Industry regulatory dynamics

1. Lisa Monaco, US Deputy Secretary of justice, announced the establishment of the national cryptocurrency enforcement team in the Aspen cyber summit speech

The Deputy Secretary of justice of the United States announced the establishment of the national cryptocurrency law enforcement team. The goal is to strengthen the ability of the Department of justice to disable the financial market in order to deal with the increasing proliferation of complex criminal acts in the cryptocurrency field, especially mixed currency services, providing infrastructure for money laundering and other criminal acts. The team will also assist in tracking and recovering assets lost due to fraud and extortion, including cryptocurrency paid to extortion software gangs. At the same time, Monaco also announced two new Ministry of justice enforcement initiatives aimed at cryptocurrency and contractors who did not report network vulnerabilities.

2. South Korea will levy taxes on virtual currency activities on January 1, 2022 as originally planned

When submitting the global income tax return in May 2023, virtual asset investors need to report in “other income” and levy 20% capital gains tax on the digital currency income of more than 2.5 million won per year (slightly higher than US $2000) to pay the relevant income obtained within one year of 2022.

3. After El Salvador, Cuba became the second country to use bitcoin as its legal currency

With the legal recognition of cryptocurrency by the Central Bank of Cuba (BCC), bitcoin and other cryptocurrencies can now be used for commercial transactions and investments in Cuba. Bitcoin has become a legal payment method for Cuban commercial transactions.

4.Weekly Investment Activities

According to public information statistics, there have been 53 investment and financing cases in the past two weeks, with a total amount of US $926 million, and the investment and financing market is active. From the perspective of the track, investment and financing are mainly concentrated in CEX and games. The largest one is the Indian cryptoexchange coinswitch kuber, which is valued at US $1.9 billion. The round C financing is US $260 million, a16z and coinbase ventures lead the investment.

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