Huobi Research Weekly(Vol.46)

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1 (Vol.46) 2019/01/ /01/20 Abstract This week, the overall market capitalization for the top 100 cryptocurrencies decreased, with 60 projects decreased in value to varying degrees. According to coinmarketcap, as of January 20th, 2019, the total market cap of the top 100 cryptocurrencies was billion U.S. dollars, decreased by 2.28% from last week. Related Reports (Vol.45) Authors Yuming Hubery Yuan Wenting Chi 4 cryptocurrency project entered the top 100 this week. As of January 20th, 2019, Bitcoin was traded at USD, 0.30% lower than its price last week. Ethereum was traded at USD, 0.86% lower than its price last week. Average number of transactions per block and average block size both increased on Bitcoin; Average number of transactions per block and average block size both increased on Ethereum. Average number of unconfirmed transactions in Bitcoin increased by 12.41%, and that of Ethereum also increased from last week. Total transaction fee of Bitcoin decreased, while that of Ethereum increased. The 7-day average of unconfirmed transactions for Bitcoin and Ethereum were 4684 and respectively. Bitcoin s Hashrate decreased by 6.57% and Ethereum s Hashrate decreased by 1.84%. The average transaction fees on the Bitcoin network this week was $0.178, decreased 3.26% from last week. While the average transaction fees on the Ethereum network this week was $0.069, increased 1.47% from last week. Total number of addresses on the Bitcoin and Ethereum network reached million and million, respectively. INS was the most active project on GitHub this week, with 324 commits submitted in the past week. Swachhcoin was the most popular group on Telegram. In terms of community activity, Bitcoin, Ethereum, and Ripple remained as the most popular communities on Facebook and Twitter. Swachhcoin attracted the most fans on Telegram in the last 24 hours, and Origin Trail s fans grew the most. 2 investment activities took place in the blockchain industry this week. Blockchain media Tuoluo Caijing received 21 million yuan of Pre-A round of investment, the largest financing of the week.

2 Table of Contents 1. Weekly Market Review Market overview Segment Analysis Technical Statistics Cryptocurrency Mining Statistics Activity Statistics Community Activity Statistics Weekly Blockchain News Review Industrial Application International Policies Technological Breakthrough Weekly Investment Activities

3 1. Weekly Market Review 1.1 Market overview Table 1.1: Top Five Price Increases and Decreases This week, the overall market capitalization for the top 100 cryptocurrencies decreased, with 60 projects decreased in value to varying degrees. According to coinmarketcap, as of January 20th, 2019, the total market cap of the top 100 cryptocurrencies was billion U.S. dollars, decreased by 2.51% from last week, among which, HC had the largest decreased of 30.29% in market cap, bringing its market cap ranking from No.61 to No.73, while APL had the largest increased of % in market cap, bringing its market cap ranking from No.204 to No.72. In addition, there were 4 projects that entered TOP100, namely, APL (increased %, now No.72), PAY (increased %, now No.77), POWR(increased 51.56%, now No.78), GXS(increased 1.32%, now No.98). As of January 20th, 2019, Bitcoin was traded at USD, 0.30% lower than its price last week. Ethereum was traded at USD, 0.86% lower than its price last week. Symbol Price decrease Symbol Price increase QASH % APL % HC % PAY % DCN % REP % KCS % LRC 56.66% PPT -8.38% POWR 56.49% Source: coinmarketcap The overall 24h trading volume increased this week. Overall, the 24h trading volume increased by 33.88% compared with the same period of last week. In this week, 59 of the top 100 projects increased by more than 20% in 24h trading volume, led by REP with a weekly increase of %; there were 10 projects that saw over 20% decrease in their 24h trading volume, led by HC, with a decreased of 93.70%. 3

4 Figure 1.1: The Market cap and 24-hour Trading Volume for TOP100 cryptocurrencies 2019/1/ /1/20 $ $ $13.16 $17.62 Market Cap(billion USD) 24h Trading Volume(billion USD) Source: coinmarketcap The top 10 cryptocurrencies market share distribution remained stable. On January 20th, the overall market cap of the top 10 cryptocurrencies was billion USD, down by 2.86% from last week, accounting for 84.82% of the total market capitalization of cryptocurrencies, similar to last week. BTC s dominance was 52.53%, up by 0.17% from last week. Figure 1.2: TOP10 Cryptocurrencies Market Share of Total Cryptocurrencies Market BSV, 1.10% Other, 15.18% BTC TRX, 1.33% ETH XLM, 1.67% LTC, 1.56% XRP BCH USDT, 1.71% EOS, 1.78% BCH, 1.81% XRP, 10.91% BTC, 52.53% EOS USDT LTC XLM ETH, 10.41% TRX BSV Other Source: coinmarketcap 4

5 Figure 1.3: TOP10 Cryptocurrencies Market Share of Total Cryptocurrencies Market Changes 60.00% 2019/1/ /1/ % 40.00% 30.00% 20.00% 10.00% 0.00% BTC ETH XRP BCH EOS USDT LTC XLM TRX BSV Other Source: coinmarketcap 1.2 Segment Analysis Among all cryptocurrency project segments, the total market cap of platform projects received the largest decrease, while the average market cap of coin projects also received a large decrease. As of January 20th, 2019, the total market cap of platform projects reached billion USD, decreased by 4.36% compared to last week. In addition, average market cap of coin projects was 3.19 Billion USD, decreased by 10.59% compared to last week, the biggest decrease among all project categorie 5

6 Figure 1.4: TOP100 Cryptocurrencies Market Segment Capitalization 2019/1/13Market cap(billion USD) 2019/1/20Market cap(billion USD) $74.94 $73.39 $20.53 $19.64 $19.10 $19.73 $2.70 $2.72 Coin Platform Application Asset-backed Token Source: coinmarketcap Figure 1.5: TOP100 Cryptocurrencies Segment Average Market Cap 2019/1/13 Average Market cap(billion USD) 2019/1/20 Average Market cap(billion USD) $3.57 $3.19 $0.76 $0.73 $0.44 $0.45 $0.39 $0.45 Coin Platform Application Asset-backed Token Source: coinmarketcap The market segment distribution of the top 100 cryptocurrencies remained stable. As of January 20th, 2019, the proportion of the market 6

7 segments has remained stable among the top 100 projects compared to last week. The number of application projects decreased by 3, the number of asset-backed token projects decreased by 1, while the number of coin projects increased by 2. The largest overall market cap by segment was still coin projects, accounting for 63.56% of the total market cap of top 100 projects, similar to that of last week. Figure 1.6: TOP100 Cryptocurrencies Segment Ratio Figure 1.7: TOP100 Cryptocurrencies Segment Market Share 6% 42% 23% 27% Coin Platform Application Asset-backed Token 16.62% 2.37% Coin Platform 17.09% Application Asset-backed Token 63.85% Source: coinmarketcap Source: coinmarketcap 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 Assetbacked 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 Hashrate of Bitcoin and Ethereum both decreased this week. From 7

8 January 14th, 2019-January 20th,2019, the average bitcoin Hashrate for the entire network reached EH/s, decreased by 6.57% from the previous week. Average Hashrate for the entire Ethereum network was TH/s this week, decreased 1.84% from last week. Figure 2.1: Bitcoin Hashrate Changes Source: blockchain.info Figure 2.2: Ethereum Hashrate Changes 8

9 Source: etherchain This week, the difficulty of mining Bitcoin increased while that of Ethereum decreased. As of January 20th, 2019, average difficulty for mining Bitcoin this week was 5.843T, increased by 3.99% from that of previous week. The average difficulty of mining Ethereum this week was 2.63P, decreased by 1.50% from that of previous week. Figure 2.3: The Difficulty of Mining in Bitcoin Figure 2.4: The Difficulty of Mining in Ethereum Source: blockchain.info Source: etherchain 9

10 The percentage of BTC.com in the overall mining pool market slightly decreased, and Poolin ranking increased. The overall distribution of the Ethereum mining pools remained stable. In the past week, Bitcoin mined 968 blocks, decreased 8.25% from the previous week. Among the top five pools were BTC.com, AntPool, Poolin, F2Pool and SlushPool, these 5 pools mined 160, 108, 95, 90 and 84 blocks respectively, accounting for 16.53%, 11.16%, 9.81%, 9.30% and 8.68% of all Bitcoins mined this week. The Hashrate was 6.69EH/s, 4.52EH/s, 3.97EH/s, 3.76EH/s and 3.51EH/s respectively. In the past week, Ethereum's entire network mined blocks, increased 0.18% from the previous week. The top five pools were Ethermine, SparkPool, Nanopool, F2pool_2 and Miningpoolhub_1, each mined 10857, 8740, 5040, 4324 and 2393 blocks respectively, accounting for 27.71%, 22.31%, 12.87%, 11.04% and 6.11% of all Ethereum mined this week, respectively. Figure 2.5: Distribution of Bitcoin Mine Pool Source:BTC.com 10

11 Figure 2.6: Distribution of Ethereum Mine Pool Source:etherscan.io 2.2 Activity Statistics The average block size and average number of transactions per block of Bitcoin and Ethereum are both increased. According to blockchain.info, from January 14th, 2019-January 20th, 2019, the average size of each block was 1.01 Mb, increased by 9.78% from last week; there were on average 2211 transactions recorded in each block, increased by 11.33% from last week. Figure 2.7: Block Size of Bitcoin Figure 2.8: The Average Transactions of Per Block in Bitcoin Source:blockchain.info Source:blockchain.info According to etherchain, the average number of transactions per block in Ethereum this week was 96.36, increased by 0.53%. The average size of each block was bytes, increased by 1.68% compared to last week. 11

12 Figure 2.9: Evolution of the average size of an Ethereum block Figure 2.10: The number of transactions per day Source: etherchain Source: etherscan.io Number of unconfirmed transactions in Bitcoin increased by 12.41%, and that in Ethereum also increased from the previous week. As of January 20th, 2019, the number of 7-day average unconfirmed transactions in Bitcoin network was 4684, increased by 12.41% from last week. There were unconfirmed transactions in the Ethereum network, with the lowest amount of unconfirmed transactions in the week being and the highest amount being Figure 2.11: Unconfirmed Transaction in Bitcoin 12

13 Source: blockchain.info Figure 2.12: Unconfirmed Transaction in Ethereum Source:etherscan.io Total transaction fees of Bitcoin decreased while that of Ethereum increased this week. As of January 20th, 2019, average transaction fees of Bitcoin this week was $0.178, decreased by 3.26% from last week. Average transaction fees of Ethereum this week was $0.069, increased by 1.47%. Figure 2.13: Bitcoin, Ethereum Average Transaction Fees 13

14 Source:bitinfocharts The average number of distinct miners per day in Ethereum increased slightly. From January 14th, 2019-January 20th, 2019, the average number of distinct miners per day in Ethereum this week was 60.00, increased by 2.20% from last week s Figure 2.14: Number of Distinct Miners Per Day Source:etherchain The number of nodes of Bitcoin increased while that of Ethereum decreased this week. As of January 20 th, 2019, there were Bitcoin nodes, increased by 3.71% compared to last week, of which 2481 nodes were in the U.S, 1916 nodes were in Germany, and 409 nodes were in China, each accounting for 24.79%, 19.14% and 4.09% of the total number of Bitcoin nodes, respectively. 14

15 As of January 20th, 2019, there were 9346 Ethereum nodes, decreased by 3.73% from the previous week. Specifically, there were 3768 nodes in the U.S, 1544 nodes in China, and 712 nodes in Canada, each accounting for 40.32%, 16.52%, 7.62% of total number of nodes, respectively. Figure 2.15: Bitcoin nodes ranking Source:bitnodes Figure 2.16: Ethereum nodes ranking 15

16 Source:Ethernodes This week, the growth rate for new addresses increased for both Bitcoin and Ethereum. According to the data on blockchain.info, as of January 20 th, 2019, the total number of Blockchain accounts reached , increased by this week. According to the data on etherchain, as of January 20 th, 2019, the total number of Ethereum addresses was , increased by this week. Figure 2.17: Bitcoin Wallet Users Figure 2.18: Total Address of Ethereum 16

17 Source:Blockchain.info Source:Etherscan INS was the most active project in GitHub last week. From January 14 th, 2019-January 20 th, 2019, INS was the active project repository on GitHub with a total of 324 commits. HOT ranked second at 170 commits. Figure 2.19: GitHub Code Activity Source:cryptomiso 2.3 Community Activity Statistics The top three most popular cryptocurrencies on Facebook were Bitcoin, Ethereum, and Ripple in descending order, with 434k, 152k and 142k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple and Ethereum, with 927k, 912k, and 440k followers, respectively. As of January 20 th, 2019, Swacchcoin received the most attention on Telegram, seeing an increase of over 133k fans. Origin Trail witnessed the biggest fan growth in the past 24 hours, attracting more than 8,000 people in a short 17

18 period of time. Table 2.1: Facebook Cryptocurrency Fans Ranking RANK Cryptocurrency Fans (Ten thousands) Table 2.2: Twitter Cryptocurrency Fans Ranking RANK Cryptocurrency Fans (Ten thousands) 1 Bitcoin Bitcoin Ethereum Ripple Ripple (XRP) Ethereum Litecoin Litecoin IOTA TRON Dash Dash XVG Monero NEO 3 8 Verge Monero OmiseGO LISK Stellar 26.1 Source:facebook Source:twitter Figure 2.20: Telegram Cryptocurrency Fan Ranking Source:icowhitelists 3. Weekly Blockchain News Review 3.1 Industrial Application 1.Spanish Car Manufacturer SEAT Joins Alastria Consortium to Develop Blockchain Products According to Cointelegraph, Spanish automobile manufacturer SEAT has 18

19 joined Alastria consortium to work on the development of blockchain-based products. In the meantime, SEAT and Telefónica have already begun jointly working on a proof-of-concept of a blockchain product that will track vehicle parts throughout the supply chain of SEAT s factory located in Martorell, Spain. SEAT joined Alastria, a multi-industry, semi-public consortium backed by a national network of more than 70 companies and establishments. These include such major players as banks BBVA and Banco Santander, telecommunications provider Telefónica, energy firm Repsol and professional services company Accenture. The goal of the alliance is to promote the advancement and development of blockchain technology Jinjia Group CO.,LTD Cooperated with Ant Financial Blockchain to Jointly Develop the Anti-counterfeiting Traceability of Wine According to Shanghai Securities News, Jinjia co., LTD. (002191), in response to investors' questions on the interactive platform on January 16, 2019, said that it will together with partners such as Allystar and Ant Financial blockchain, according to the needs of cooperative customers, carry out the business of authenticity identification, anti-counterfeiting traceability, customization and interactive marketing from multiple dimensions. The company's product Hezhi APP has signed a contract with Moutai, Shandong Huaguan, Yilite, Yelanggu and other well-known wine enterprises to jointly develop the anti-counterfeiting traceability of wine and realize the wine fidelity and information collection International Policies 1. Singapore's Payment Services Bill has been formally legislated, which will affect numerous digital currency exchanges Recently, the Payment Services Bill of Singapore has passed the parliament for deliberation and has been formally legislated. Education minister Ong Ye Kung, speaking on behalf of the monetary authority of Singapore (MAS), said the MAS would consult the relevant industry in the near future and formally introduce the implementation method and exemption terms of the bill. The bill 19

20 will directly affect many digital currency exchanges, wallets and OTC platforms in the Singapore market, and will comprehensively regulate related businesses from both risk control and compliance aspects. Statements/Speeches/2019/Payment-Services-Bill.aspx 2. South Africa will come up with a complete registration process for crypto exchanges and wallets by Q In a recently published consultation paper, the South African Reserve Bank (SARB) has put forth its view on the crypto industry and stated that the sector should be regulated on priority to protect the consumers and investors. The paper was jointly developed by multiple major South African agencies including Financial Intelligence Centre (FIC), Financial Sector Conduct Authority (FSCA), National Treasury (NT), South African Revenue Service (SARS), and the SARB, the central bank of South Africa. The central bank, however, made it clear that it does not consider digital assets as legal tender. The bank is aiming to come with the complete registration process by the end of first quarter of In addition, the cryptocurrency service providers would also have to monitor and report suspicious transactions, such as cash transactions of R25,000 and more Devs Behind Marshall Islands National Crypto Confirm Plans to Launch This Year According to cointelegrpah, in the recent post, the team behind the coin dubbed Sovereign (SOV) revealed that it had made significant progress in finding partners, investors, and developers to realize the project. As the post states, the team is aiming to launch SOV in 2019.The team behind the statebacked crypto includes former Secretary General of the Bank for International Settlements, Dr. Peter Dittus, as the project s Chief Economist.The project also announced a new partnership with smart banknotes firm Tangem, a start-up operating from Switzerland and Singapore. 20

21 confirm-plans-to-launch-this-year 4. Bulgaria Investigates Crypto Exchanges For Taxes, Asks 10% on Profits A The government of Bulgaria has started to investigate crypto exchanges to demand taxes from the profits investors generated from trading digital assets. The National Revenue Agency (NRA) has categorized cryptocurrencies as financial assets, which incur a 10 percent tax on profit that individuals have to disclose annually. on-profits/ 5. Wyoming Introduces a Bill Aiming to Define Virtual Currencies as Money Wyoming has recently seen a surge in blockchain- and crypto-related legislation entering its legal system. As Cointelegraph recently reported, a bill allowing corporations to issue blockchain-based tokens that represent stocks was introduced in Wyoming on Jan. 16th. If passed, the bill would take effect July 1st, The drafted legislation also lets banks serve as qualified custodians in accordance with regulations put in place by the U.S. Securities and Exchanges Commission (SEC) Technological Breakthrough 1. USA: Blockchain Technology to Revitalize the Health Department s Contract Acquisition Function According to a report by FedTech Magazine published on January 18, 2019, the U.S. Department of Health & Human Services (HHS) is moving ahead with its new data monitoring tool called HHS Accelerate to streamline the process of procuring and executing contracts. 21

22 2. Internet Information Journal: New Internet technologies such as blockchain have effectively improved the governance efficiency of cyberspace On January 18 th,2019, Cnxin published an article called "clean network cocasting integrity", which uses Internet technology to weave a "firewall" of network integrity. The paper points out that the promotion and application of new Internet technologies such as big data, blockchain and artificial intelligence in cyberspace has effectively improved the governance efficiency of cyberspace, effectively promoted the construction of network integrity system, and gradually made integrity become a passport to walk in cyberspace Weekly Investment Activities 2 investment activities took place in the blockchain industry this week. Blockchain media Gyro Finance received 21 million yuan of Pre-A round of investment, the largest financing of the week. Table 4.1 Investment and Financing Projects for the Week Name Round Amount Investors Category ChainDesk Pre-A round 10 million yuan KD Jurong Fund Blockchain Vocational Education Institutions Tuoluo Caijing Pre-A round 21 million yuan ND Blockchain Media Data Source: IT Juzi, QiFengCaiJing 22

23 Huobi Research About Us: Huobi Research was founded in April 2016 and started research and explorations in various aspects in Blockchain area since March We cover various fields such as Blockchain technology research, industry analysis, application innovation and economic model explorations. We aim to establish a research platform and to offer theoretical foundations as well as judgements of trends in Blockchain to the public, ultimately promoting the development of the Blockchain industry. aims to provide participators of the cryptocurrency market with the most up-to-date and comprehensive database to help them facilitate decision-making process. Contact Us: Jianshu: Twitter: huobiresearch@huobi.com 火币区块链 Huobi_Research Medium: Huobi Research Facebook: Huobi Research Website: Disclaimer: 1. Huobi Research does not have any form of association with Blockchain projects or other third-parties mentioned in this report that could jeopardize the objectivity, independence and fairness of this report. 2. All outside information, data referenced in this report is from compliant and legitimate sources that we deem as reliable, and Huobi Research have conducted the due diligence concerning its authenticity, accuracy and completeness, but such due diligence does not provide any guarantee. 3. This report is only for reference purposes. Conclusions and viewpoints in the report do not constitute any form of investment advice on crypto assets. Huobi Research is not responsible for any losses resulting from the use of this report, unless stipulated by law. Under no circumstances should the readers give up their own investment analysis and judgements. 4. This report only reflects the opinions from Huobi Research on the day it was finalized. Future market condition changes may lead to updates of such judgements. 5. The report is copyrighted by Huobi Research, please cite the source when quote, and get approval from us when large amount of contents is referenced. Under no circumstances is reference, abridgment and modification contrary to original intention permitted. 23