Huobi Research Weekly (Vol.189) (2021.11.1–2021.11.7)
Abstract
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 9.09%, with 75 projects increased in value to varying degrees. According to coinmarketcap, as of November 7, 2021, the total market cap of cryptocurrencies was 2830.6 billion U.S.dollars, increased of 9.09%, and the total market cap of the top 100 cryptocurrencies was 2714.8 billion U.S. dollars, increased by 6.26% from last week. 3 cryptocurrency projects entered the top 100 this week, namely LRC, KDA and TEL. As of November 7, 2021, Bitcoin was traded at 63326.99USD, 3.31% higher than its price last week. Ethereum was traded at 4620.55USD, 7.84% 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 decreased and the average block size of Ethereum decreased this week. The average transaction fees of Bitcoin increased but Ethereum decreased. TWT was the most active project on GitHub this week.
The average bitcoin Hashrate for the entire network reached 159.8EH/s, increased by 0.88% from the previous week. Average Hashrate for the entire Ethereum network was 803.64TH/s this week, increased by 1.97%. Average difficulty for mining Bitcoin this week was 21.23, increased by 5.73% from last week. The average difficulty of mining Ethereum this week was 10326.25TH, increased by 2.24% from that of previous week.
In network activity, the average size of each block was 1.20MB, increased by 10.09% from last week; there were on average 1816 transactions recorded in each block, increased by 5.64% from the previous week. The average number of transactions per block in Ethereum this week was 211.3, decreased by 1.90%. The average size of each block was 64407.28 bytes, decreased by 5.34% compared to last week.. Average transaction fees of Bitcoin this week was $2.779, increased by 9.02% from last week. Average transaction fees of Ethereum this week was $41.533, decresead by 19.16% from last week. The total number of Bitcoin addresses was 78724349, increased by 633040 (0.81%). Trust wallet token was the most active project on GitHub this week, with 90 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 public information statistics, there were 28 investment and financing in the past week, with a total amount of US $1.344 billion, and the investment and financing market is very active.
1. Weekly Market Review
1.1 Market overview
This week, the overall market capitalization for the top 100 cryptocurrencies increased of 9.09%, with 75 projects increased in value to varying degrees. According to coinmarketcap, as of November 7, 2021, the total market cap of cryptocurrencies was 2830.6 billion U.S.dollars, increased of 9.09%, and the total market cap of the top 100 cryptocurrencies was 2714.8 billion U.S. dollars, increased by 6.26% from last week, among which, KDA had the largest increased of 203.93%, bringing its market cap ranking from №214 to №58, SHIB had the largest decreased of -15.39%, bringing its market cap ranking from №9 to №11. In addition, there were 3 projects that entered TOP100, namely, TEL (Telcoin, increased 26.02%, Now №97), LRC (Loopring, increased 135.72%, Now №77), KDA (Kadena, increased 203.93%, Now №58). As of November 7, 2021, Bitcoin was traded at 63326.99USD, 3.31% higher than its price last week. Ethereum was traded at 4620.55USD, 7.84% higher than its price last week.
The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 37.85% compared with the same period of last week. In this week, 27 of the top 100 projects increased in 24h trading volume, led by KDA with a weekly increased of 1893.02%; there were 73 projects decreased in their 24h trading volume, there were 57 projects that saw over 20% decrease in their 24h trading volume, while 25 projects fell by more than 50%. The most decresed project led by MANA, with a decreased of -89.93%.
The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On November 7, 2021, the overall market cap of the top 10 cryptocurrencies was 2243.6 billion USD, increased by 6.05% from last week, accounting for 79.26% of the total market capitalization of cryptocurrencies, decreased by 2.27% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 42.21%, decreased by 2.36% from last week.
1.2 Segment Analysis
Among TOP 100 cryptocurrency project segments, the total market cap of Application project got the largest increase. The average market cap of Application project got the largest increase. As of November 7, 2021, the total market cap of coin projects reached 1643.4 billion USD, increased by 4.63%. The average market cap of coin projects reached 31.6 billion USD, increased by 6.64%. The total market cap of platform projects reached 745.9 billion USD, increased by 7.01%. The average market cap of platform projects reached 32.4 billion USD, increased by 7.01%. The total market cap of application class projects reached 251.4 billion USD, increased by 16.62%. The average market cap of application class projects reached 10.9 billion USD, increased by 11.55%. The total market cap of asset-backed token projects reached 73.8 billion USD, increased by 3.40%. The average market cap of asset-backed token projects reached 36.9 billion USD, increased by 3.40%.
The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 7, 2021, among the top 100 projects, the number of coin class projects decrease 1, platform class projects and asset-backed token class both remain the same, application class projects increse 1. The largest overall market cap by segment was still coin projects, accounting for 60.54% 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 November 1, 2021- November 7, 2021, the average bitcoin Hashrate for the entire network reached 159.8EH/s, increased by 0.88% from the previous week.
Average Hashrate for the entire Ethereum network was 803.64TH/s this week, increased by 1.97%.
This week, the difficulty of mining Bitcoin increased and Ethereum increased. As of November 7, 2021mber, average difficulty for mining Bitcoin this week was 21.23, increased by 5.73% from last week. The average difficulty of mining Ethereum this week was 10326.25TH, increased by 2.24% from that of previous week.
The number of blocks in Bitcoin decreased by 5.98%, Top 3 rankings had changed. The overall distribution of the Ethereum mining pools rankings not changed, the number of blocks increased by 0.17%. In the past week, Bitcoin mined 1054 blocks, decreased by 5.98% from the previous week. Among the top three pools were F2Pool、AntPool、ViaBTC, these 3 pools mined 201、161 and 134 blocks respectively, accounting for 19.07%、15.28% and 12.71% of all Bitcoins mined this week. The Hashrate was 30.81EH/s、24.68EH/s and 20.54EH/s, respectively.
In the past week, Ethereum’s entire network mined 47179 blocks, increased by 0.17% in the previous week. The top five pools were Ethermine, F2pool Old, Hiveon Pool, Flexpool.io and Nanopool, each mined 12452、11973、4330、1835 and 1761 blocks respectively, accounting for 26.3931%、25.3015%、9.1778%、3.8894% and 3.7326% 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 decreased and the average block size of Ethereum decreased this week. According to blockchain.info, from November 1, 2021- November 7, 2021, the average size of each block was 1.20MB, increased by 10.09% from last week; there were on average 1816 transactions recorded in each block, increased by 5.64% from the previous week.
According to etherscan, the average number of transactions per block in Ethereum this week was 211.3, decreased by 1.90%. The average size of each block was 64407.28 bytes, decreased by 5.34% compared to last week.
Number of unconfirmed transactions in Bitcoin increased by 36.06%. Number of unconfirmed transactions in Ethereum increased by 0.29 from the previous week. As of November 7, 2021, the number of 7-day average unconfirmed transactions in Bitcoin network was 4490, increased by 36.06% from last week. There were 181273.91 unconfirmed transactions in the Ethereum network, increased by 0.29% from last week, with the lowest amount of unconfirmed transactions in the week being 42488 and the highest amount being 220113.
Total transaction fees of Bitcoin increased but Ethereum decreased. As of November 7, 2021, average transaction fees of Bitcoin this week was $2.779, increased by 9.02% from last week. Average transaction fees of Ethereum this week was $41.533, decresead by 19.16% from last week.
The average number of distinct miners per day in Ethereum increased. From November 1, 2021- November 7, 2021, the average number of distinct miners per day in Ethereum this week was 47.8, increased by 0.84% from last week.
The number of nodes in Bitcoin decreased by 4.08% ,The number of nodes in Ethereum decreased by 13.49% this week. As of November 7, 2021, there were 12274 Bitcoin nodes, decreased by 4.08% compared to last week, of which 1825 nodes were in U.S, 1788 nodes were in Germany, and 140 nodes were in China(№11), each accounting for 14.87%, 14.57% and 1.14% of the total number of Bitcoin nodes, respectively.
As of November 7, 2021, there were 2615 Ethereum nodes, decreased by 13.49% from the previous week. Specifically, there were 872 nodes in the U.S, 409 nodes in Germany, and 190 nodes in China, each accounting for 33.32%, 15.63%, 7.26% 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 November 7, 2021, the total number of Bitcoin addresses was 78724349, increased by 633040 (0.81%).
TWT was the most active project on GitHub this week. From November 1, 2021 — November 7, 2021, Trust wallet token was the active project repository on GitHub with a total of 90 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 3.6million , 2.1million, and 1.7million followers, respectively.
3. Weekly Blockchain Dynamics
3.1 Mainstream project dynamics
1. Ethereum merger is expected to take place in the second quarter of 2022
Ethereum merger is expected to take place in the second quarter of 2022. After the merger, the primary task is to unlock ETH locked in the pledge contract. The computing power of Ethereum network exceeded 812 Th / s, a record high.
2. Polkat has opened parallel chain registration and crowdfunding through proposal 42
Polkat has opened parallel chain registration and crowdfunding through proposal 42, and will open card slot auction on November 11. The projects participating in the card slot auction on November 11 announced the bidding strategy: clover, a cross chain smart contract platform, will provide 20% of the tokens for reward; Manta network, a privacy protection project, will take 15.6% of the total amount as a crowdfunding reward; The defi platform ACALA will provide 17% of the tokens for incentives.
3. The total lock up volume of the whole network reached US $256.5 billion, a record high
Currently, the top three defi protocols with lock up amount are Curve (US $19.9 billion), Maker (US $18.2 billion) and AAVE (US $15.4 billion).
4. Axie infinity dedicated Ethereum side chain ronin launches token RON
The token Ron can be used to pay gas fees and provide online hosting services for axie infinity and future game products. At present, all ronin users can get 100 free transactions every day, but future transactions need to be paid by RON.
3.2 International industry dynamics
1. Chicago Mercantile Exchange plans to launch micro Ethereum futures on December 6
The Chicago Mercantile Exchange Group (CME Group) announced that it would launch micro ether futures on December 6 to expand its encrypted derivatives products. At present, the futures are awaiting regulatory review. The contract provides an effective and cost-effective new way to fine tune Ethereum’s exposure to enhance the trading strategy while retaining the characteristics and advantages of Ethereum futures with a large scale of CME.
2. US SEC solicits opinions on converting grayscale bitcoin fund into bitcoin spot ETF fund
The US Securities and Exchange Commission (SEC) is carefully studying the application for converting grayscale bitcoin Fund (GBTC) into bitcoin spot ETF, and issued a notice on November 2 to solicit opinions from relevant parties.
3. Microsoft officially entered the Metaverse
Microsoft is enabling the Metaverse to enable conference members to use personalized avatars and get an immersive experience. Mainly through two products, mesh for Microsoft teams can enable meeting members to use personalized avatars and provide an immersive space for connection and cooperation; Dynamics 365 connected spaces is still in the preview stage, which allows people to understand how people move and interact in any space and how they manage health and safety in a mixed work environment.
4. The mayor of New York plans to turn the city into a cryptocurrency friendly city
Eric Adams, the new mayor of New York, plans to turn the city into a cryptocurrency friendly city and set up a talent pipeline for cryptocurrency related work. He also said that the first three salaries after taking office will be paid in the form of bitcoin.
3.3 Industry regulatory dynamics
1. The US House of Representatives passed an infrastructure bill with encrypted tax provisions
The U.S. House of Representatives voted at least 218 in favor of the infrastructure bill, which contains provisions on cryptocurrency tax reporting requirements. At present, the bill has been sent to U.S. President Biden for signature. Next, the U.S. Treasury still needs to explain how it plans to interpret the act and issue guidance on how businesses or other entities must comply with the act.
2. The president’s financial market working group of the Biden Administration issued a stable currency report, calling on Congress to legislate to ensure federal regulation of a stable currency
The report said that the stable currency is a digital asset linked to the traditional currency, which can change the payment methods of Americans from mobile phones to haircuts. When regulated, the stable currency can support faster, more efficient and more inclusive payment options.
3. SEC Chairman: in the future, we will determine whether to comply with the securities law through the economic behavior of encryption products
Gary Gensler pointed out: “many defi and cryptocurrency products are labeled with” defi “,” currency “or” peer-to-peer lending “, but we need to focus on the economic behavior of specific products to determine whether these products should comply with the securities law.”.
4. The Central Bank of Spain asked the country’s major financial institutions to provide plans related to cryptocurrency in the next three years
The central bank asked the country’s banks to provide information such as their relationship with cryptocurrency service providers, their shares in cryptocurrency companies and their exposure to cryptocurrency. In addition, the Central Bank of Spain also asked whether banks planned to issue tokens or provide custody, trading or payment services of cryptocurrencies, and outlined relevant plans to promote products or provide services to customers through digital platforms in the next three years.
4.Weekly Investment Activities
According to the statistics of public information, there were 28 investment and financing in the past week, with a total amount of US $1.344 billion. The investment and financing market is in a very active state. From the track point of view, investment and financing are mainly concentrated in asset management and games. In particular, the game track is extremely hot in terms of total financing and the number of financing transactions.
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