Huobi Research Weekly (Vol.186) (2021.10.11–2021.10.17)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 9.13%, with 60 projects increased in value to varying degrees. According to coinmarketcap, as of October 17, 2021, the total market cap of cryptocurrencies was 2503.6 billion U.S.dollars, increased of 9.13%, and the total market cap of the top 100 cryptocurrencies was 2417.6 billion U.S. dollars, increased by 9.66% from last week. 4 cryptocurrency projects entered the top 100 this week, namely NU, PERP, KCS and TEL. As of October 17, 2021, Bitcoin was traded at 61553.62USD, 12.43% higher than its price last week. Ethereum was traded at 3847.1USD, 12.40% 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 decreased but the average block size of Bitcoin increased. The average number of transactions per block decreased and the average block size of Ethereum decreased this week. The average transaction fees of Bitcoin increased and Ethereum increased. SOL was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 146.4EH/s, increased by 0.83% from the previous week. Average Hashrate for the entire Ethereum network was 746.61TH/s this week, increased by 1.44%. Average difficulty for mining Bitcoin this week was 19.89T, increased by 1.95% from last week. The average difficulty of mining Ethereum this week was 9580.13TH, increased by 1.37% from that of previous week.

In network activity, the average size of each block was 1.21MB, increased by 0.83% from last week; there were on average 1831 transactions recorded in each block, decreased by 2.55% from the previous week. The average number of transactions per block in Ethereum this week was 189.2, decreased by 2.27%. The average size of each block was 75508.85 bytes, decreased by 12.01% compared to last week.. Average transaction fees of Bitcoin this week was $3.564, increased by 9.06% from last week. Average transaction fees of Ethereum this week was $28.706, incresead by 18.28% from last week. The total number of Bitcoin addresses was 77541717, increased by 281979 (0.36%). Solana was the most active project on GitHub this week, with 97 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 were 19 investment and financing in the past week, with a total amount of US $721 million, and the investment and financing market was active.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 9.13%, with 60 projects increased in value to varying degrees. According to coinmarketcap, as of October 17, 2021, the total market cap of cryptocurrencies was 2503.6 billion U.S.dollars, increased of 9.13%, and the total market cap of the top 100 cryptocurrencies was 2417.6 billion U.S. dollars, increased by 9.66% from last week, among which, NU had the largest increased of 416.29%, bringing its market cap ranking from №276 to №98, DCR had the largest decreased of -14.50%, bringing its market cap ranking from №64 to №71. In addition, there were 4 projects that entered TOP100, namely, TEL (Telcoin, increased 16.24%, Now №90), KCS (KuCoin Token, increased 16.70%, Now №94), PERP (Perpetual Protocol, increased 32.37%, Now №85), NU (NuCypher, increased 416.29%, Now №98). As of October 17, 2021, Bitcoin was traded at 61553.62USD, 12.43% higher than its price last week. Ethereum was traded at 3847.1USD, 12.40% higher than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 16.25% compared with the same period of last week. In this week, 40 of the top 100 projects increased in 24h trading volume, led by NU with a weekly increased of 2043.28%; there were 60 projects decreased in their 24h trading volume, there were 37 projects that saw over 20% decrease in their 24h trading volume, while 10 projects fell by more than 50%. The most decresed project led by MIOTA, with a decreased of 74.93%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On October 17, 2021, the overall market cap of the top 10 cryptocurrencies was 2037.4 billion USD, increased by 10.86% from last week, accounting for 81.38% of the total market capitalization of cryptocurrencies, increased by 1.27% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 46.34%, increased by 1.36% from last week.

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 Asset-backed token project got the largest increase. As of October 17, 2021, the total market cap of coin projects reached 1509.3 billion USD, increased by 10.56%. The average market cap of coin projects reached 27.9 billion USD, increased by 12.61%. The total market cap of platform projects reached 643.3 billion USD, increased by 9.78%. The average market cap of platform projects reached 27.9 billion USD, increased by 5.00%. The total market cap of application class projects reached 194.5 billion USD, increased by 6.47%. The average market cap of application class projects reached 9.26 billion USD, increased by 1.40%. The total market cap of asset-backed token projects reached 70.3 billion USD, decreased by 0.53%. The average market cap of asset-backed token projects reached 35.1 billion USD, increased by 49.20%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of October 17, 2021, among the top 100 projects, the number of coin class projects decrease 1, application class projects and platform class both increase 1, and asset-backed token class decrease 1. The largest overall market cap by segment was still coin projects, accounting for 62.43% 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 11, 2021- October 17, 2021, the average bitcoin Hashrate for the entire network reached 146.4EH/s, increased by 0.83% from the previous week.

Average Hashrate for the entire Ethereum network was 746.61TH/s this week, increased by 1.44%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of October 17, 2021, average difficulty for mining Bitcoin this week was 19.89T, increased by 1.95% from last week. The average difficulty of mining Ethereum this week was 9580.13TH, increased by 1.37% from that of previous week.

The number of blocks in Bitcoin increased by 1.19%, Top 3 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks increased by 3.85%. In the past week, Bitcoin mined 1019 blocks, increased by 1.19% from the previous week. Among the top three pools were AntPool、F2Pool、ViaBTC, these 3 pools mined 171、144 and 129 blocks respectively, accounting for 16.78%、14.13%、and 12.66% of all Bitcoins mined this week. The Hashrate was 24.14EH/s、20.33EH/s and 18.21EH/s, respectively.

In the past week, Ethereum’s entire network mined 47166 blocks, increased by 3.85% in the previous week. The top five pools were Ethermine, F2pool Old, Hiveon Pool, Nanopool and BeePool, each mined 12023、10646、4278、2213 and 1999 blocks respectively, accounting for 25.4908%、22.5713%、9.0701%、4.6919% and 4.2382% of all Ethereum mined this week, respectively.

2.2 Activity Statistics

The average number of transactions per block decreased but the average block size of Bitcoin increased. The average number of transactions per block decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from October 11, 2021- October 17, 2021, the average size of each block was 1.21MB, increased by 0.83% from last week; there were on average 1831 transactions recorded in each block, decreased by 2.55% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 189.2, decreased by 2.27%. The average size of each block was 75508.85 bytes, decreased by 12.01% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 39.88%. Number of unconfirmed transactions in Ethereum increased by 0.72% from the previous week. As of October 17, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 6546, decreased by 39.88% from last week. There were 169628.07 unconfirmed transactions in the Ethereum network, increased by 0.72% from last week, with the lowest amount of unconfirmed transactions in the week being 57226 and the highest amount being 198164.

Total transaction fees of Bitcoin increased and Ethereum increased. As of October 17, 2021, average transaction fees of Bitcoin this week was $3.564, increased by 9.06% from last week. Average transaction fees of Ethereum this week was $28.706, incresead by 18.28% from last week.

The average number of distinct miners per day in Ethereum increased. From October 11, 2021- October 17, 2021, the average number of distinct miners per day in Ethereum this week was 47.1, increased by 10.05% from last week.

The number of nodes in Bitcoin increased by 8.71% ,The number of nodes in Ethereum decreased by 2.14% this week. As of October 17, 2021, there were 14221 Bitcoin nodes, increased by 8.71% compared to last week, of which 1825 nodes were in U.S, 1793 nodes were in Germany, and 146 nodes were in China(№10), each accounting for 12.83%, 12.61% and 1.03% of the total number of Bitcoin nodes, respectively.

As of October 17, 2021, there were 3664 Ethereum nodes, decreased by 2.14% from the previous week. Specifically, there were 1276 nodes in the U.S, 555 nodes in Germany, and 242 nodes in China, each accounting for 34.83%, 15.15%, 6.60% 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 17, 2021, the total number of Bitcoin addresses was 77541717, increased by 281979 (0.36%).

SOL was the most active project on GitHub this week. From October 11, 2021 — October 17, 2021, Solana was the active project repository on GitHub with a total of 97 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 3.4million , 2.1million, and 1.6million followers, respectively.

3. Weekly Blockchain Dynamics

3.1 Mainstream project dynamics

1. The Ethereum arrow glacier network will be upgraded in December, and the difficulty bomb plan will be postponed to June next year

Tim beiko, the core developer of Ethereum, tweeted that according to the latest Ethereum teleconference discussion, the Ethereum arrow glacier network upgrade including the improvement proposal eip-4345 will be carried out at the block height of 13773000 (about December 8), and the difficulty bomb plan will be postponed to June next year. Tim beiko said that it is expected to prepare the code required for the merge in February next year and complete the Ethereum POS merger in June.

2. Polygon launched “Swap For Gas” function

Polygon launched the “swap for gas” function, which allows users to exchange eth, Dai or usdt into matic tokens at zero cost on the polygon POS network when there is no matic token in their wallet, and the amount of each exchange is at least 1 matic, and the upper limit is 20 matic.

3. Polkadot Kusama’s second round slot auction has ended

The second round of slot auction of posaka Kusama has ended. Next, Kusama network will suspend the auction and crowdfunding, observe the stability of the network, and then open the third round of auction. At present, Kusama network has launched 12 parallel chains.

4. Fox entertainment launched the NFT market and community maskverse based on the reality show masked king

Fox entertainment and its blockchain creative laboratory launched the NFT market and community maskverse based on the reality show singing competition TV program “masked king”. NFT can be purchased through apple pay, visa, paypal and other common methods, which will support the purchase with encrypted currency. NFT will be cast on the blockchain called eluvio, which is interoperable with Ethereum, but at a lower cost.

3.2 International industry dynamics

1. ProShares will launch its first US listed bitcoin futures ETF next week

Several mainstream U.S. financial media reported that ProShares, a fund management company, is ready to launch the first bitcoin futures ETF listed in the United States. The company submitted relevant issuance documents on Friday afternoon. The issuance documents show that the product will be based on bitcoin futures contract rather than bitcoin spot, with a management fee of 0.95%, and will be traded on NYSE Arca exchange under the trading code BITO.

2. Ark investment plans to cooperate with 21shares to launch bitcoin ETF based on futures

Ark investment plans to cooperate with 21shares to launch futures based bitcoin ETF. According to the documents submitted to the U.S. Securities and Exchange Commission (SEC), ark investment management plans to launch futures based bitcoin ETF in cooperation with the U.S. subsidiary of 21shares, a Swiss cryptocurrency ETP publisher “Ark 21shares bitcoin futures strategy ETF”, stock code Arka, with 21shares as the Deputy consultant.

3. A16z global policy director and legal adviser release Web3 policy agenda

Tomicah Tillemann, global policy director of a16z, and James rathmell, legal adviser, jointly released the Web3 policy agenda “how to win the future”. This document will be used as a continuously updated document in a16z “Web3 policy center” to provide more resources for governments, academia, civil society and private sectors striving to build Web3.

4. Strike, a lightning online payment platform, announced the launch of the “Pay Me In Bitcoin” function in the United States

Strike, a lightning online payment platform, announced the launch of the “pay me in bitcoin” function in the United States, allowing U.S. users to deposit their wages directly into the strike account, and then convert some or all of their wages into bitcoin according to the preset exchange rate without any charge. Strike’s bitcoin exchange function can be used in the United States except New York and Hawaii.

3.3 Industry regulatory dynamics

1. The G20 said that the global stability currency would not begin to operate until legal, regulatory and supervisory requirements were resolved

The communique of the fourth formal meeting of G20 finance ministers and central bank governors was released. Finance ministers and central bank governors reiterated that until all relevant legal, regulatory and supervisory requirements of the “global stability currency” are fully addressed through appropriate design and compliance with applicable standards, no so-called “global stability currency” should begin to operate.

2. The U.S. Commodity Futures Trading Commission (CFTC) required tether and bitfinex to pay a total fine of $42.5 million

The U.S. Commodity Futures Trading Commission (CFTC) asked tether and bitfinex, a cryptocurrency trading platform, to pay a total fine of $42.5 million. CFTC of the United States claimed that tether made untrue or misleading statements and omitted material facts in its usdt, asked tether to pay a civil fine of US $41 million, and stopped any further violations of the Commodity Exchange Act (CEA) and CFTC regulations. Meanwhile, CFTC of the United States accused bitfinex, a cryptocurrency trading platform, of illegal over-the-counter retail commodity trading of digital assets and operating as a futures commission merchant (FCM) without registration as required. Bitfinex was asked to pay a fine of $1.5 million.

3. The OCC issued the banking supervision operation plan for fiscal year 2022, and cryptocurrency was included in the plan for the first time

The office of the Comptroller of the currency (OCC) issued the banking supervision operation plan for fiscal year 2022, and cryptocurrency was included in the plan for the first time. OCC said that inspectors should identify banks that are using financial innovations such as cryptocurrency to make significant changes to their operations and evaluate their implementation.

4. US Treasury releases compliance guidelines for sanctions on virtual currency industry

The U.S. Treasury issued the compliance guidelines for sanctions on the virtual currency industry, suggesting that virtual currency exchanges use geographic positioning tools to prevent access to countries subject to U.S. sanctions. At the same time, the virtual currency industry should not participate in sanctions transactions prohibited by the office of foreign assets control of the U.S. Treasury.

4.Weekly Investment Activities

According to public information statistics, there were 19 investment and financing in the past week, with a total amount of US $721 million, and the investment and financing market was active. From the perspective of the track, investment and financing are mainly concentrated in asset management, infrastructure and tools. The largest one is Celsius, an encrypted lending platform, which is valued at more than $3 billion after this financing. Another investment and financing, tradingview completed $298 million financing with a valuation of $3 billion. The company is a financial information service platform that provides stock charts, information, news, etc.

Huobi Research

About Us:

The Huobi Blockchain Application Research Institute (referred to as ‘Huobi Research’) was established in April 2016. Since March 2018, it has been committed to comprehensively expanding research and exploration in various fields of blockchain. The research institute takes the pan-blockchain field as the research object, aimed to accelerate the research and development of blockchain technology, promote the application of the blockchain industry, and promote the ecological optimization of the blockchain industry. The main research content of the institute includes industry trends, technology paths, application innovation, and model exploration in the field of blockchain. In line with the principles of public welfare, rigor and innovation, Huobi Research Institute will carry out extensive and in-depth cooperation with government, enterprises, universities and other institutions through various forms. We are building a research platform covering the complete industrial chain of the blockchain, providing a solid theoretical basis and trend judgment for the blockchain industry professionals, and promoting the healthy and sustainable development of the entire blockchain industry.

Contact us:

Inquiry email:

research@huobi.com

Official website:

Research.huochaintech.com

WeChat public account:

HuobiCN

Sina Weibo:

https://www.weibo.com/u/6690456123

Twitter:

@Huobi_Research

https://twitter.com/Huobi_Research

Medium:

Huobi Research

Disclaimer:

1. Huobi Research has no relationship with other third parties involved in this report that affects the objectivity, independence, and impartiality of the report.

2. The materials and data cited in this report are from compliance channels. The sources of the materials and data are considered reliable by the Huobi Research and the authenticity, accuracy and completeness of the materials have been verified as necessary, but Huobi Research does not make any guarantees regarding authenticity, accuracy or completeness.

3. The contents of the report are for reference only. The facts and opinions in the report do not constitute any business, investment suggestions. Huobi Research does not assume any responsibility for losses caused using the contents of this report, unless clearly stipulated by laws and regulations. Readers should not make business and investment decisions solely based on this report, nor should they lose the ability to make independent judgments based on this report.

4. The information, opinions and speculations contained in this report only reflect the judgment of the researchers on the day of finalization of this report. In the future, based on industry changes and data information updates, there is a possibility of updating opinions and judgments.

5. The copyright of this report is solely owned by Huobi Research. If you need to quote the content of this report, please indicate the source. If you need a large quote, please inform in advance and use it to the extent permitted. Under no circumstances should this report be quoted, abridged or modified against its original intention.

Blockchain industry top think tank, affiliated to Huobi Group.@Huobi Global