Huobi Research Weekly (Vol.97) 2020.1.13–2020.1.19)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 12.11%, with 79 projects increased in value to varying degrees. According to coinmarketcap, as of January 19th, 2020, the total market cap of cryptocurrencies was 245.3 billion U.S. dollars, increased by 12.11%, and the total market cap of the top 100 cryptocurrencies was 237.2 billion U.S. dollars,increased by 9.06% from last week. 2 cryptocurrency projects entered the top 100 this week, namely STEEM and DX. As of January 19th, 2020, Bitcoin was traded at 8706.25USD, 6.35% higher than its price last week. Ethereum was traded at 166.97USD, 14.56% higher than its price last week.

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

The average bitcoin Hashrate for the entire network reached 109.2EH/s, increased by 2.25% from the previous week.Average Hashrate for the entire Ethereum network was 126.99TH/s this week, decreased by 16.71%. Average difficulty for mining Bitcoin this week was 14.22T, increased by 3.12% from last week. The average difficulty of mining Ethereum this week was 2083.87TH, increased by 1.06% from that of previous week.

In network activity, the average size of each block was 983.9KB, decreased 0.04% form last week; there were on average 2071 transactions recorded in each block, increased by 2.42% from the previous week. The average number of transactions per block in Ethereum this week was 97.6, increased by 5.51%. The average size of each block was 27443.42 bytes, increased by 36.36% compared to last week. As of January 19th, 2020, average transaction fees of Bitcoin this week was $0.551, increased by 14.08% from last week. Average transaction fees of Ethereum this week was $0.0948, incresead by 15.47%. The total number of Bitcoin addresses was 44356046 decreased by 100151 (-0.23%), the total number of Ethereum addresses was 82257429 increased by 1917 (0.002%) this week. ZSC was the most active project on GitHub this week, with 80 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 Tron.

3 investments activities took place in the blockchain industry this week, Filenet got strategic investment from Imagination Fund、Lianhe capital, Switcheo Network got strategic investment from NEO, BEOSIN got strategic investment from Lenovo capital and Fosun.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies increased of 12.11%, with 79 projects increased in value to varying degrees. According to coinmarketcap, as of January 19th, 2020, the total market cap of cryptocurrencies was 245.3 billion U.S. dollars, increased by 12.11%, and the total market cap of the top 100 cryptocurrencies was 237.2 billion U.S. dollars,increased by 9.06% from last week, among which, BSV had the largest increased of 69.25%, bringing its market cap ranking from №8 to №5, BDX had the largest decreased of -22.51%, bringing its market cap ranking from №60 to №83. In addition, there were 2 projects that entered TOP100, namely, STEEM (steem, increased 28.10%, Now №93), DX (Dxchain Token, increased 44.48%, Now №87). As of January 19th, 2020, Bitcoin was traded at 8706.25USD, 6.35% higher than its price last week. Ethereum was traded at 166.97USD, 14.56% higher than its price last week.

The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 55.36% compared with the same period of last week. In this week, 77 of the top 100 projects increased in 24h trading volume, led by STEEM with a weekly increase of 759.55%; there were 23 projects decreased in their 24h trading volume, there were 9 projects that saw over 20% decrease in their 24h trading volume, while 2 projects fell by more than 50%, led by BDX, with a decreased of 88.77%.

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On January 19th, 2020, the overall market cap of the top 10 cryptocurrencies was 213.6 billion USD, increased by 8.85% from last week, accounting for 87.06% of the total market capitalization of cryptocurrencies, decreased by 2.61% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 64.48%, decreased by 3.49% from last week.

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of Platform projects got the largest increase. The average market cap of Asset-backed projects got the largest increase. As of January 19th, 2020, the total market cap of coin projects reached 182.0 billion USD, increased by 8.72%. The average market cap of coin projects reached 4.92 billion USD, increased by 5.78%. The total market cap of platform projects reached 28.6 billion USD, increased by 12.90%. The average market cap of platform projects reached 0.86 billion USD, increased by 12.90%. The total market cap of application class projects reached 21.67 billion USD, increased by 9.61%. The average market cap of application class projects reached 0.77 billion USD, increased by 9.61%. The total market cap of asset-backed token projects reached 4.77 billion USD, decreased by 1.77%. The average market cap of asset-backed token projects reached 2.38 billion USD, increased by 47.35%.

The market segment distribution of the top 100 cryptocurrencies remained stable. As of January 19th, 2020, among the top 100 projects, the number of coin class projects increased 1, application class projects remain the same, platform class projects remain the same and asset-backed token class decreased 1. The largest overall market cap by segment was still coin projects, accounting for 76.77% 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 but Ethereum decreased by this week. From January 13th, 2020 — January 19th, 2020, the average bitcoin Hashrate for the entire network reached 109.2EH/s, increased by 2.25% from the previous week.

Average Hashrate for the entire Ethereum network was 126.99TH/s this week, decreased by 16.71%.

This week, the difficulty of mining Bitcoin increased and the difficulty of mining Ethereum increased. As of January 19th, 2020, average difficulty for mining Bitcoin this week was 14.22T, increased by 3.12% from last week. The average difficulty of mining Ethereum this week was 2083.87TH, increased by 1.06% from that of previous week.

The number of blocks in Bitcoin decreased by 5.32%. Top 5 rankings remain the same. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks decreased 0.25%. In the past week, Bitcoin mined 1032 blocks, decreased 5.32% from the previous week. Among the top five pools were F2Pool、 Poolin、BTC.com、AntPool、ViaBTC, these 5 pools mined 179、174、130、112 and 79 blocks respectively, accounting for 17.34% 、16.86%、12.60%、10.85% and 7.66% of all Bitcoins mined this week. The Hashrate was 18.35EH/s、17.84EH/s、13.33EH/s、11.48EH/s and 8.10EH/s, respectively.

In the past week, Ethereu’s entire network mined 48075 blocks, decreased 0.25% from the previous week. The top five pools were SparkPool, Ethermine, F2pool, Nanopool and Zhizhu.top, each mined 15660、10656、4923、3851 and 1954 blocks respectively, accounting for 32.5741%、22.1654%、10.2402%、8.0104% and 4.0645% 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 January 13th, 2020-January 19th, 2020, the average size of each block was 983.9KB, decreased 0.04% form last week; there were on average 2071 transactions recorded in each block, increased by 2.42% from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 97.6, increased by 5.51%. The average size of each block was 27443.42 bytes, increased by 36.36% compared to last week.

Number of unconfirmed transactions in Bitcoin increased by 16.42%. Number of unconfirmed transactions in Ethereum decreased by 1.99% from the previous week. As of January 19th, 2020, the number of 7-day average unconfirmed transactions in Bitcoin network was 6233, increased by 16.42% from last week. There were 63037.12 unconfirmed transactions in the Ethereum network, decreased by 1.99% from last week, with the lowest amount of unconfirmed transactions in the week being 4017 and the highest amount being 72600.

Total transaction fees of Bitcoin and Ethereum both increased. As of January 19th, 2020, average transaction fees of Bitcoin this week was $0.551, increased by 14.08% from last week. Average transaction fees of Ethereum this week was $0.0948, incresead by 15.47%.

The average number of distinct miners per day in Ethereum decreased by 7.75% from last week. From January 13th, 2020-January 19th, 2020,the average number of distinct miners per day in Ethereum this week was 52.4, decreased by 7.75% from last week.

The number of nodes in Bitcoin decreased ,The number of nodes in Ethereum increased this week. As of January 19th, 2020, there were 10709 Bitcoin nodes, decreased by 3.62% compared to last week, of which 2346 nodes were in the U.S, 1869 nodes were in Germany, and 252 nodes were in China(№9), each accounting for 21.91%, 17.45% and 2.35% of the total number of Bitcoin nodes, respectively.

As of January 19th, 2020, there were 7743 Ethereum nodes, increased by 1.98% from the previous week. Specifically, there were 1985 nodes in the U.S, 1202 nodes in China, and 737 nodes in Germany, each accounting for 25.64%, 15.52%,9.52% of total number of nodes, respectively.

This week, the growth rate for new addresses of Bitcoin decreased. The growth rate for new addresses of Ethereum increased. According to the data on etherchain, as of January 19th, 2020, the total number of Bitcoin addresses was 44356046 decreased by 100151 (-0.23%), the total number of Ethereum addresses was 82257429 increased by 1917 (0.002%) this week.

ZSC was the most active project on GitHub this week. From January 13th,2020-January 19th,2020, RDN was the active project repository on GitHub with a total of 80 commits.

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 969k, 517k and 157k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 1million , 943k, and 493k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. UAE Can Save Over $3B by Deploying Blockchain, New Research Reveals

The deployment of blockchain technology can save the United Arab Emirates (UAE) more than $3 billion, according to new findings.The findings were revealed in a white paper entitled “Inclusive Deployment of Blockchain: Case Studies and Learning from the United Arab Emirates,” Emirates News Agency reported on Jan. 15. By integrating blockchain into their operations, the UAE government can also drastically reduce paperwork, eliminating 398 million printed documents and 77 million work hours per year, the analysis stated. Over the past several months, the UAE has launched a number of blockchain-related initiatives, including the Digital Silk Road which aims to digitize the trade process, the development of the country’s first financial document exchange platform based on the tech, and the Silsal blockchain project with the objective to provide greater security, transparency and efficiency in shipping and logistics.

2. Mediterranean Olive Oil Producer Uses IBM Blockchain to Fight Food Fraud

CHO, one of the largest olive oil producers in the southern Mediterranean, announced on Jan. 14 that it is using IBM’s blockchain technology to provide traceability for its Terra Delyssa extra virgin olive oil. The company is the latest major food provider to join IBM’S Food Trust Network.Utilizing blockchain allows CHO to track Terra Delyssa across eight quality assurance checkpoints, including the orchard where the olives were grown, the mill where olives were crushed, and the facilities where the oil was filtered, bottled and distributed. CHO olive oil is made by Tunisian farmers, which is stated on each bottle’s label. Although the company has been successful in creating transparency by telling consumers where their olive oil comes from, CHO wanted to add a layer of trust to its products.

3. Huobi Exchange Partners With UAE Real Estate Firm to Enable Crypto Payments

Major cryptocurrency exchange Huobi has partnered with a real estate firm in the United Arab Emirates (UAE) to allow real estate investors to pay in cryptocurrencies.The Singapore-based crypto exchange has entered a partnership with fäm Properties, a tech-driven real estate agency based in Dubai, to offer crypto payment options for its real estate investors, UAE-based business publication AMEinfo.com reports Jan. 12. The cooperation will purportedly enable more stability and liquidity in the real estate market. This partnership will provide our clients immense opportunity and the ease of investing in prime locations in the UAE. Meanwhile, the real estate market in the UAE has been actively embracing emerging technologies like blockchain and associated digital assets. In October 2019, Emaar Properties, the Dubai-based real estate giant that developed the world’s tallest building, the Burj Khalifa, released its new blockchain token-based referral and loyalty platform. Previously, the company announced its intention to launch a token and hold an initial coin offering in Europe.

3.2 International Policies

1. Malaysia Looks to Tie Token Offerings to Exchanges

Following the US SEC’s investor alert against Initial Exchange Offerings (IEO’s), Malaysia’s regulator has published a regulatory guide requiring token offerings in the country be attached to exchanges. A report from Malaysia’s Securities Commission (SC) makes clear that digital tokens are to be used only for goods and services and within strict guidelines, which will take effect late 2020. Issuing digital tokens in the country without SC approval is illegal. The platforms themselves bear responsibility for vetting issuers and approving token features. The minimum paid-up capital is 5 million Malaysian ringgit ($1,227,000).Operators looking to trade digital assets must be registered as Digital Asset Exchange platform operators — more commonly known as crypto exchanges. Issuers must meet a minimum paid-up capital of 500,000 ringgit ($122,700). The SC report mandates that any business dealings must somehow offer value to Malaysia, such as addressing market needs and problems or streamlining processes and services.

2. Russia’s New Prime Minister Sets Course for Digital Economy

The Prime Minister of the Russian Federation has called on the country to prioritize the development of the digital economy. Mishustin said that the country should implement modern information technologies, including the development of a national digital economy program, adding:“The state should become a digital platform that is created for people.” Major Russian firms, including some in which the state holds a significant stake, are beginning to test and apply blockchain tech to various aspects of their operations. Meanwhile, digital currencies still do not have solid legal ground to stand on in Russia. There have been numerous attempts to define cryptocurrencies legally over the past years. At different times, Russian lawmakers have been urged to introduce a regulatory framework by President Putin (twice), the local Supreme Arbitration Court and the Financial Action Task Force.

3. United Nations Says Stay Away From North Korean Crypto Conference

The United Nations has warned that attending a North Korean cryptocurrency conference in February is likely to constitute a sanctions violation, according to a report by Reuters on Jan. 15.The report follows last week’s indictment of Ethereum Foundation researcher Virgil Griffith on charges of conspiracy to violate the International Emergency Economic Powers Act.Griffith traveled to North Korea for its first blockchain and cryptocurrency conference in April last year. While there, he and other conference attendees allegedly discussed cryptocurrencies and blockchain technologies. The United States government contends that Griffith’s presence could have aided North Korea in skirting international sanctions. The conference website states that individuals from any country except for South Korea, Japan and Israel are allowed to visit, adding that visitor passports will not be stamped:“We will provide a paper visa separated from your passport, so there will be no evidence of your entry to the country. Your participation will never be disclosed from our side unless you publicize it on your own.”

3.3 Technological Breakthrough

1. Unpacking the Potential of Blockchain and Infrastructure in Africa

The vast swathes of Africa’s fertile lands may ultimately prove a central arena for the ground-up development of innovative digital infrastructure and green energy projects. Recent pivotal moments in African trade, such as the African Continental Free Trade Agreement, are setting the table for an environment conducive to rapid growth, where both energy and financial infrastructure are a primary focus. Africa’s untapped economic potential is no secret. The continent’s population has soared past more than 1.3 billion, which accounts for roughly 17% of the world’s population and is mostly comprised of young people, with two-thirds of the population below the age of 24. The opportunity for Africa lies directly with the ability to potentially leapfrog an entire generation of financial and energy infrastructure — a luxury that countries in the Western Hemisphere lack. And the world is taking notice. Blockchains can help manage the excess waste of electricity, ease regulatory moats via more distributed systems, and create regional markets for the energy chain. In the context of Africa, governments can allocate renewable energy resources more efficiently, building national systems from the ground up with reduced costs. This overcomes one of the main issues with renewable energy sources — their high rates of energy curtailment. More efficient markets mean that less energy is accidentally (or deliberately) curtailed, making green energy ROI more appealing when compared with its fossil fuel counterparts.

4.Weekly Investment Activities

3 investments activities took place in the blockchain industry this week, Filenet got strategic investment from Imagination Fund、Lianhe capital, Switcheo Network got strategic investment from NEO, BEOSIN got strategic investment from Lenovo capital and Fosun.

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