Huobi Research
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Huobi Research

Huobi Blockchain Big Data Weekly Insights (Vol.1 2018/6/6–2018/6/13)

Abstract

The number of active Bitcoin addresses this week has dropped slightly, down from 3.4 to 3.3 million. The main reason was the drop of reactivated addresses, which was 970k compared to 1.1 million in the previous week. The number of persistent active addresses was 600k, accounting for 18.3% of the total number of active addresses, slightly higher than 16.5% of the previous week. The on-chain BTC transaction volume increased 8.3% to 916.1BTC this week; the number of transactions was 1.4 million. The BTC TPS was 2.3 this week, remaining stable. Total BTC transaction fee increased from 135.5 to 140.0 BTC this week while the average fee per transaction remained 0.0001BTC.

NLP Word Cloud Analysis suggests BTC, EOS, and ETH were the three cryptocurrencies receiving the most widespread attention this week; “Voting”, “Launch” and “Public Chain” were the three hottest words in the Events category; “Huobi”, “OKEX” and “Binance” were the three hottest words in the Exchanges/KOL category. BTC, ETC and EOS were the most active projects on GitHub. The search trends with regard to the cryptocurrency market has experienced an overall decrease this week.

The cryptocurrencies had high correlations between each other this week; the lowest correlation was 0.92 between the price of ADA and EOS. TRON experienced the largest price decrease of 22% this week, while BTC experienced the smallest decrease of 9%. EOS had the largest volatility of 0.0061 while BTC had the smallest volatility of 0.0024. EOS, TRON and LTC had the largest turnover this week, each with 126%, 63% and 46.5% respectively. XLM, XRP and ADA had the lowest turnover, each with 9.5%, 12.1% and 18.2%.

1. On-Chain Data

1.1 Active Bitcoin Address

The number of active Bitcoin addresses this week has dropped slightly from last week, down from 3.39 million to 3.28 million.

This week, active addresses reached a total of 600,000, which is slightly improved compared to last week’s 560,000. Regarding categorization, the number of active addresses this week accounted for 18.3% of the total number of active addresses, compared to last week’s 16.5%, increasing slightly. The number of newly added addresses this week was 1.71 million, which was almost the same as last week. The number of reactivated address was 970,000, which was significantly lower than last week’s 1.13 million, with a decrease of 14.2%. However, if we compare this number within a two-week period, there was a clear increase, indicating that more inactive addresses have recently begun to reactivate.

1.2 On-Chain Bitcoin Transaction

The on-chain trading volume of Bitcoin this week was higher than that of last week: the volume of transactions has risen continuously for three weeks. The volume of transactions this week was 916.1 BTC, with an increase of 8.3% compared with 846.1 BTC in last week. This week, the number of on-chain transactions was 1.393 million, slightly higher than 1.38 million recorded last week.

1.3 Bitcoin Transaction per Second

The TPS of Bitcoin was 2.30 this week, slightly higher than 2.28 in the previous week.

Bitcoin Transaction per Second

1.4 Bitcoin On-chain Transaction Fee

The total Bitcoin on-chain transaction fee this week was slightly higher than that of last week, increasing from 135.5 BTC to 140.0 BTC, while the average transaction fee per transaction remained the same of 0.0001 BTC. The average transaction fee was at a relatively low level these weeks, which was only about 40% compared to the peak in the week of April 25 to May 2.

Bitcoin Transaction Fee

2. Social Media Data

2.1 Word Cloud

Huobi Research analyzes the text using NLP to extract relevant entities and understand the overall sentiments from China’s largest cryptocurrency online community 8btc.com. Specifically, we break down the keywords to three categories: Cryptocurrencies, Events, and Exchanges/KOLs.

In the Cryptocurrencies category, NLP Word Cloud suggests Bitcoin, EOS, and Ethereum as the three cryptocurrencies that received the most widespread attention (similar to last week). Discussions on Bitcoin were mainly focused on price and time to buy or sell, with discussions on EOS mainly focused on its MainNet launch time and security issues, and discussions on Ethereum mainly focused on the importance of Smart Contract.

In the Events category, NLP Word Cloud suggests “Voting”, “Launch” and “Public Chain” as the three hottest words of the week. Specifically, “voting” refers to the currently ongoing voting for EOS Supernodes; “launch” refers to EOS MainNet launch as well as Coinbase’s launch of ETC trading; “Public Chain” refers to Huobi Chain’s HCSCP Program, R-DAG platform, and discussions regarding the current developmental stage of various other promising Blockchain platform projects.

In the Exchanges/KOLs category, NLP Word Cloud suggests “Huobi”, “OKEX”, and “Binance” as the three hottest words of the week. Specifically, posts regarding Huobi mainly focused on the new HB 10 Index as well as the Feud between HADAX and 5 crypto projects listed on HADAX; posts regarding OKEX mainly focused on its alleged price manipulation and on the voting for token listing; posts regarding Binance mainly focused on its decision to establish fully compliant crypto exchange in New Jersey, as well as other problems such as security issues. It is also worth to note that as a newly established crypto exchange, Fcoin has received widespread attention from the community in a short amount of time, with discussions regarding Fcoin mainly focusing on its token price and analysis on its business model.

We witness a drastic change in the trending topics this week; Focuses on “Fcoin”, “FT”, “Dividend”, “World Cup” and “Public Chain” received the largest increase, while focuses on “Bytom”, “Tron”, “Conversion”, “Airdrop” and “Bitfinex” received the largest decrease within a week.

Most(left) and Least(right) Trending Topic on 8btc.com

2.2 GitHub Code Activity

This week, BTC, ETC and EOS are the most active projects in GitHub, with their respective numbers of “stars” reaching 35022, 23341, and 9957, respectively, and their respective numbers of “forks” reaching 20862, 8826, and 2788, respectively.

Top Starred/Forked Project on GitHub

2.3 Search Trends

This week, Search trends of “Bitcoin”, “Ethereum”, “EOS”, “Smart Contract”, and “Blockchain” on various platforms all experience decrease to varying degrees, only except for the trend of “Ethereum” on WeChat, which experienced a drastic 69.8% increase compared to last week.

Weekly Change in Search Trends

3. Secondary Market Performance

3.1 Rate of Return/Price Volatility

The cryptocurrency market has experienced a decrease as a whole, with TRON experienced the largest decrease in the week of 22% and BTC experienced the smallest decrease of 9%. EOS has the largest volatility rate of 0.0061 while BTC has the smallest rate of 0.0024.

Rate of Return vs Price Volatility

3.2 Turnover

EOS, TRON and Litecoin are the three cryptocurrencies with the highest turnover this week, each with 126%, 63%, and 46.5% respectively. Stellar, Ripple and Cardano have the lowest turnover this week, each with 9.5%, 12.1% and 18.2% respectively.

Rate of Return vs Turnover

3.3 Cryptocurrency Price Correlations

Correlation amongst assets is the degree to which they move in tandem. The matrices above show Pearson correlations and p-values that are computed from log-returns of volume-weighted average daily prices over the past week.

This week, a high correlation between cryptocurrency prices is evident, as there are high correlations between all major cryptocurrency assets. ADA and EOS have the smallest correlation of 0.92, which is highly correlated.

Pearson Correlations Matrix between Cryptocurrencies

Huobi Research

About us:

Huobi Research of Blockchain Application (Huobi Research) was founded in April 2016 and started research and explorations in various aspects in blockchain area since March 2018. We cover blockchain technology research, industry analysis, application innovation and economic model explorations etc. 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 entire industry.

Contact us:

E-mail:huobiresearch@huobi.com

Twitter: @Huobi_Research

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Website: http://research.huobi.com/

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.

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