Weekly Report: Under Greater Pressure From Policies
September 29 2021 — The secondary market fell in general with a rise in turnover as there was lack of new stimuli. Policies were tightening. In addition, the DeFi sub-sector performed more actively.
- Total market value declined. Last week, the total market value of digital assets declined from US$2.03 trillion to US$1.83 trillion. Bitcoin fluctuated in a broad range of US$40,000 to US$45,000.
- Most of the top 100 digital assets fell. Last week, among the top 100 digital assets, 35 staged growth, while 65 witnessed decline
- Bitcoin’s hash rate decreased. The average hash rate of Bitcoin declined modestly week-on-week. The weekly average hash rate was about 135.41EH/s.
- Bitcoin’s on-chain activity grew and Ethereum’s on-chain activity decreased. The Bitcoin network saw a 1.31% decrease, a 4.87% decrease and a 34.27% increase in average number of transfers, average number of active addresses and average transfer amount, respectively. In the Ethereum network, the average number of on-chain transactions and the number of active addresses fell by 3.49% and 8.32%, respectively, with the average on-chain transaction amount up by 30.02%.
- Stock exchanges showed a decline in turnover. Last week, turnover on the 10 exchanges tracked by us rose. Binance moved up by 12.3%. Bitfinex, Bitstamp and Coinbase recorded an increase of 57.3%, 51.0% and 38.6%, respectively.
- Open position in futures declined to US$13.6 billion. Last week, turnover of Bitcoin futures market grew 54.6% week-on-week, with open position down to US$13.6 billion.
- Bitcoin and stablecoin increased to US$122.2 billion. Last week, turnover of USDT increased by US$250 million. USDC increased by US$1.77 billion, and BUSD increased by US$860 million.
- Under greater pressure from policies. Market value dropped to below US$2 trillion last week as the secondary market saw a larger decline in general. Spot turnover, and turnover of Bitcoin and Ethereum futures rose while open positions in futures fell. At the regulatory level, the National Development and Reform Commission (NDRC) and several other ministries and commissions have jointly formulated stringent policies on virtual currency transaction and mining, but specific implementation rules may vary from province to province. Also, Huobi has issued an announcement on completing the orderly retirement of mainland China user accounts. Besides in DeFi sub-sector, derivatives dYdX, and Sushiswap, Uniswap in Dex performed better last week, and NFT collectibles trading in Ethereum was also more active. Overall, the market went down in general last week due to lack of favorable messages for supporting new highs. Market volatility is expected to continue for some time.
About HashKey Capital
HashKey Capital, HashKey Group’s venture capital arm, is an institutional asset manager investing exclusively in blockchain technology, digital assets and crypto-financial infrastructures. It provides accredited investors and professional investors with secure access and diversified exposure to digital assets. HashKey Capital combines the agility and independent risk-taking traditionally found in the best venture firms, while offering differentiated access to the network of relationships found in one of the largest industrial and financial conglomerates in the world.
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