Huobi Research Weekly (Vol.187) (2021.10.18–2021.10.24)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 2.40%, with 64 projects increased in value to varying degrees. According to coinmarketcap, as of October 24, 2021, the total market cap of cryptocurrencies was 2563.8 billion U.S.dollars, increased of 2.40%, and the total market cap of the top 100 cryptocurrencies was 2475.1 billion U.S. dollars, increased by 2.38% from last week. 2 cryptocurrency projects entered the top 100 this week, namely NEXO and ZEN. As of October 24, 2021, Bitcoin was traded at 60930.84USD, 0.98% lower than its price last week. Ethereum was traded at 4087.9USD, 6.33% 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 but the average block size of Ethereum decreased this week. The average transaction fees of Bitcoin decreased and Ethereum decreased. TWT was the most active project on GitHub this week.

The average bitcoin Hashrate for the entire network reached 149.3EH/s, increased by 1.98% from the previous week. Average Hashrate for the entire Ethereum network was 756.99TH/s this week, increased by 1.39%. Average difficulty for mining Bitcoin this week was 20.00T, increased by 0.55% from last week. The average difficulty of mining Ethereum this week was 9690.68TH, increased by 1.15% from that of previous week.

In network activity, the average size of each block was 1.22MB, increased by 0.83% from last week; there were on average 1895 transactions recorded in each block, increased by 3.50% from the previous week. The average number of transactions per block in Ethereum this week was 192.5, increased by 1.74%. The average size of each block was 71438.85 bytes, decreased by 5.39% compared to last week. Average transaction fees of Bitcoin this week was $3.041, decreased by 14.67% from last week. Average transaction fees of Ethereum this week was $22.253, decresead by 22.48% from last week. The total number of Bitcoin addresses was 77798268, increased by 256551 (0.33%). Trust wallet token was the most active project on GitHub this week, with 76 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 the statistics of public information, there were 25 investment and financing cases in the past week, with a total amount of US $10.1 billion, and the investment and financing market was extremely active.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 2.40%, with 64 projects increased in value to varying degrees. According to coinmarketcap, as of October 24, 2021, the total market cap of cryptocurrencies was 2563.8 billion U.S.dollars, increased of 2.40%, and the total market cap of the top 100 cryptocurrencies was 2475.1 billion U.S. dollars, increased by 2.38% from last week, among which, RUNE had the largest increased of 60.43%, bringing its market cap ranking from №68 to №56, FLOW had the largest decreased of -15.67%, bringing its market cap ranking from №37 to №45. In addition, there were 2 projects that entered TOP100, namely, NEXO (Nexo, increased 58.42%, Now №76), ZEN (Horizen, increased 16.26%, Now №96). As of October 24, 2021, Bitcoin was traded at 60930.84USD, 0.98% lower than its price last week. Ethereum was traded at 4087.9USD, 6.33% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 16.30% compared with the same period of last week. In this week, 55 of the top 100 projects increased in 24h trading volume, led by SHIB with a weekly increased of 565.43%; there were 45 projects decreased in their 24h trading volume, there were 26 projects that saw over 20% decrease in their 24h trading volume, while 3 projects fell by more than 50%. The most decresed project led by FLOW, with a decreased of 62.77%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On October 24, 2021, the overall market cap of the top 10 cryptocurrencies was 2073.1 billion USD, increased by 1.75% from last week, accounting for 80.86% of the total market capitalization of cryptocurrencies, decreased by 0.52% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 44.81%, decreased by 1.53% 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 October 24, 2021, the total market cap of coin projects reached 1533.2 billion USD, increased by 1.58%. The average market cap of coin projects reached 28.3 billion USD, increased by 1.58%. The total market cap of platform projects reached 673.6 billion USD, increased by 4.71%. The average market cap of platform projects reached 29.2 billion USD, increased by 4.71%. The total market cap of application class projects reached 197.3 billion USD, increased by 1.44%. The average market cap of application class projects reached 9.39 billion USD, increased by 1.44%. The total market cap of asset-backed token projects reached 70.8 billion USD, increased by 0.73%. The average market cap of asset-backed token projects reached 35.4 billion USD, increased by 0.73%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of October 24, 2021, among the top 100 projects, the number of coin class projects, application class projects, platform class and asset-backed token class both remain the same. The largest overall market cap by segment was still coin projects, accounting for 61.95% 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 18, 2021- October 24, 2021, the average bitcoin Hashrate for the entire network reached 149.3EH/s, increased by 1.98% from the previous week.

Average Hashrate for the entire Ethereum network was 756.99TH/s this week, increased by 1.39%.

This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of October 24, 2021, average difficulty for mining Bitcoin this week was 20.00T, increased by 0.55% from last week. The average difficulty of mining Ethereum this week was 9690.68TH, increased by 1.15% from that of previous week.

The number of blocks in Bitcoin increased by 3.93%, Top 3 rankings had changed. The overall distribution of the Ethereum mining pools rankings had changed, the number of blocks increased by 0.52%. In the past week, Bitcoin mined 1059 blocks, increased by 3.93% from the previous week. Among the top three pools were F2Pool、AntPool、BTC.com, these 3 pools mined 181、154 and 139 blocks respectively, accounting for 17.09%、14.45%、and 11.14% of all Bitcoins mined this week. The Hashrate was 25.75EH/s、21.77EH/s and 20.20EH/s, respectively.

In the past week, Ethereum’s entire network mined 47409 blocks, increased by 0.52% in the previous week. The top five pools were Ethermine, F2pool Old, Hiveon Pool, Nanopool and Flexpool.io, each mined 12659、11720、4473、2343 and 1668 blocks respectively, accounting for 26.7017%、24.7210%、9.4349%、4.9421% and 3.5183% 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 October 18, 2021- October 24, 2021, the average size of each block was 1.22MB, increased by 0.83% from last week; there were on average 1895 transactions recorded in each block, increased by 3.50% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 192.5, increased by 1.74%. The average size of each block was 71438.85 bytes, decreased by 5.39% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 16.50%. Number of unconfirmed transactions in Ethereum decreased by 1.23% from the previous week. As of October 24, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 5466, decreased by 16.50% from last week. There were 169628.07 unconfirmed transactions in the Ethereum network, decreased by 1.23% from last week, with the lowest amount of unconfirmed transactions in the week being 33556 and the highest amount being 191237.

Total transaction fees of Bitcoin decreased and Ethereum decreased. As of October 24, 2021, average transaction fees of Bitcoin this week was $3.041, decreased by 14.67% from last week. Average transaction fees of Ethereum this week was $22.253, decresead by 22.48% from last week.

The average number of distinct miners per day in Ethereum increased. From October 18, 2021- October 24, 2021, the average number of distinct miners per day in Ethereum this week was 50.8, increased by 7.86% from last week.

The number of nodes in Bitcoin decreased by 0.54% ,The number of nodes in Ethereum decreased by 3.38% this week. As of October 24, 2021, there were 14144 Bitcoin nodes, decreased by 0.54% compared to last week, of which 1863 nodes were in U.S, 1793 nodes were in Germany, and 140 nodes were in China(№10), each accounting for 13.17%, 12.68% and 0.99% of the total number of Bitcoin nodes, respectively.

As of October 24, 2021, there were 3540 Ethereum nodes, decreased by 3.38% from the previous week. Specifically, there were 1240 nodes in the U.S, 535 nodes in Germany, and 236 nodes in China, each accounting for 35.03%, 15.11%, 6.67% 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 24, 2021, the total number of Bitcoin addresses was 77798268, increased by 256551 (0.33%).

TWT was the most active project on GitHub this week. From October 18, 2021 — October 24, 2021, Trust wallet token was the active project repository on GitHub with a total of 76 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 1.7million followers, respectively.

3. Weekly Blockchain Dynamics

3.1 Mainstream project dynamics

1. Ethereum foundation and other teams launched the website login.xyz to track the progress of “sign in with Ethereum”

Ethereum foundation, Ethereum domain name system ens and digital identity authentication company spruce jointly launched the website login.xyz to track the progress of “sign in with Ethereum”. The website has everything necessary to follow the Ethereum login standardization process, such as the recently submitted EIP 4361 draft specification on Ethereum login standard. In addition, it also includes an introduction to “sign in with Ethereum”, how to sign up for the next community teleconference, videos and notes of past community teleconference, a list of early projects supporting the standard and other updates. “Sign in with Ethereum” is a set of technical specifications for logging in to third-party Web applications through Ethereum accounts, enabling users to control their digital identity through Ethereum accounts and ENS profiles, rather than relying on traditional intermediaries. At present, it has been used in Web3 and aims to standardize with best practices to make web2 services easier to adopt.

2. Polkat advance network Kusama proposed to open regular and continuous slot auctions

The Kusama Council adopted motion 377 proposal to open the regular and continuous auction of Kusama network. The proposal plans to arrange a slot auction every week for the next eight lease terms (48 weeks). The winning project will not be connected to the Kusama network immediately, but in the next lease term. The current lease term is 16, and each lease term is 6 weeks. There can be 5 auctions in the current lease term. The five successful auctions will all be connected to the Kusama network at one time at the beginning of the 17 lease term (November 27).

3. Immutable x is splitting IMX tokens, and the total number will increase to 2 billion

Previously, the share of tokens obtained by users participating in IMX token sales and “play to earn” activities will remain unchanged, but the number will increase to 100 times the nominal number. Immutable x said that this token split is to improve the user experience because the value of IMX tokens in a single transaction on the platform is too small.

4. Sushiswap has increased mining efficiency by 5x through gauntlet cooperation

Sushiswap’s cooperation through gauntlet has increased mining efficiency by 5x and increased transaction volume by US $300 million per day. By statistically modeling the impact of incentive changes on capital inflow / outflow of liquidity pool, gauntlet transfers incentive measures from the pool with less impact on LP to the pool with greater impact on LP, so as to maximize the impact of incentive.

3.2 International industry dynamics

1. Bitcoin futures ETF: bito and BTF have been listed and traded

ProShares bitcoin futures ETF (bito) has been listed and traded on the New York Stock Exchange, with an opening price of US $40.89 on the first day and a turnover of nearly US $1 billion on the first day. Valkyrie bitcoin futures ETF (BTF) was also listed and traded on NASDAQ this week. The opening price on the first day was US $25.5, the closing price was US $24.3, and the trading volume on the first day was US $78 million.

2. Purpose investments, an asset management company, applied to launch three cryptocurrency ETFs in Canada

The three cryptocurrency ETFs are “purpose crypto opportunities ETF”, “purpose bitcoin yield ETF” and “purpose ether yield ETF”. “Purpose crypto opportunities ETF” aims to invest in companies related to digital assets, “purpose bitcoin yield ETF” and “purpose ether yield ETF” indirectly invest in bitcoin and Ethereum through derivatives.

3. Facebook digital currency wallet Novi has launched a small pilot, which was later stopped by senators of the U.S. banking commission

Facebook digital currency wallet Novi has launched a small pilot, first using Pax dollar as a remittance method. To test the core functions of the wallet and its operational capabilities in terms of customer service and compliance, so that users can send and receive funds instantly, safely and free of charge. Subsequently, senators from the U.S. Banking Commission urged Facebook to immediately stop the pilot of Novi wallet. They said, “when Facebook’s ability to manage risks and ensure consumer security is proved to be completely insufficient, Facebook cannot be trusted to manage the payment system or digital currency.”

4. The NFT head sculpture of the mask network of the Web 3.0 project can be set and verified directly on the twitter page

The Web 3.0 project mask network announced that its NFT head sculpture function has been updated and is open to all users. After connecting the wallet, users can directly set the NFT in the wallet as avatar in the twitter personal setting interface and obtain relevant chain holding authentication.

3.3 Industry regulatory dynamics

1. FATF will release the anti money laundering guide of cryptocurrency next week

FATF will publish the anti money laundering guide of cryptocurrency next week and call on all countries to formulate and implement the “travel rules” of cryptocurrency as soon as possible. In addition to further clarifying the definition of VASP, the anti money laundering guidelines will also explain how FATF standards apply to stable currencies. The travel rules require cryptocurrency exchanges in all jurisdictions to perform KYC obligations.

2. Terra founder do Kwon is suing the securities and Exchange Commission

According to the documents, do Kwon received a subpoena from the SEC at the mainnet meeting of MESARI last month. The event can be traced back to may 2021. The law enforcement department of the SEC sent an email to do Kwon. The controversial issue is Terra’s synthetic asset agreement mirror protocol, which is a decentralized financial platform, It can track the stock price of American companies through synthetic stocks. Previously, do Kwon claimed that he had not received a subpoena from the SEC during MESARI mainnet.

3. A special committee of the Australian Senate put forward 12 suggestions on the supervision of cryptocurrency

The suggestions include: implementing the licensing system of cryptocurrency exchange, establishing the custody system of digital assets, establishing a new decentralized autonomous organization (DAO) corporate structure, etc. After the committee submits its recommendations, they need to be further debated in the Senate until the debate produces a bill to be voted on in the house of Commons and the house of Lords.

4. Bank of Spain is ready to provide encryption services before the introduction of relevant regulations on encrypted assets

Due to the lack of clear instructions from the Central Bank of Spain, it is difficult for the proposed European regulations to regulate encrypted assets and their operation platforms to be issued before the end of the year. The compliance departments of several large financial institutions have begun to study whether they must register to provide encryption services. BBVA, a Spanish foreign bank, has provided encrypted asset trading services in Switzerland and currently provides bitcoin custody and sales.

4.Weekly Investment Activities

According to the statistics of public information, there were 25 investment and financing cases in the past week, with a total amount of US $10.1 billion, and the investment and financing market was extremely active. From the perspective of the track, investment and financing are mainly concentrated in cefi, infrastructure and NFT / chain tour / meta universe. The largest one is that the exchange FTX completed $420 million invested by 69 companies, with a company valuation of $25 billion. In addition, two investment and financing projects worth more than 100 million US dollars were completed by NFT start-up candy digital, led by Softbank and insight; The crowdfunding platform Republic completed round B financing of US $150 million.

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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.

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