Weekly Blockchain Industry Report-13th Issue: EOS RAM Price Skyrocketing
(July 7th–July 13th, 2018)
This week, we experienced quick fade of FCoin mania and the new hot topic was the expensive EOS RAM price.The crypto market overall is still in fluctuation with BTC holding $6300 support.
We hope this report provides you with insights into your investments and knowledge of cryptocurrencies. We have also attached a list of upcoming ICOs at the end of this article if you’re interested in any of the new projects.
Market Overview
The past week’s daily average global market capitalization of cryptocurrency was $263.67 billion and the daily average transaction volume was $12.82 billion, indicating a incline of 0.5% an decline of 11.4% respectively. The daily average market capitalization of the top five cryptocurrencies increased by 0.46% from the previous week. Among the top five — all of which decreased in price — EOS has experienced the greatest price decrease by 37.44% in the past week.
Analysis of Top 200 Market Cap Projects
The market capitalization of top 200 projects decreased by 6.83% compared with that of last week. Based on the main categories of cryptocurrency and payment, public chain and protocol, vertical chain and protocol, and vertical industrial application, the vertical industrial application sector decreased the most.
Through further classification of the vertical chain and protocol and vertical industrial application verticals, it was found that this week’s corporate services vertical was on an obvious increase at a rate of 40.31%. Medical Insurance and AI verticals experienced the greatest decreases with a rate of 28.93% and 27.78% respectively.
Analysis of Newly Listed Projects
There were 13 new projects in the market last week (mainly of the asset management vertical), 76.92% of which dropped in price within 24 hours of listing. Most of the newly issued tokens were listed on CoinBene and EthFinex.
Analysis of Closed Public Sales Projects
There have been 25 closed public sales projects this week, totaling nearly 143 million USD. Among these projects, projects of the payment field received most funding. This was closely followed by projects of the cryptocurrency and payment field.
Important News on Global Governmental Policies this Past Week
Below is a list of some of the most important global news on governmental policies on blockchain and cryptocurrency. The picture below is for reference to how strict/loose some countries are with their regulations.
Canada
The Canadian Securities Regulatory Authority is working with the global digital platform to ban digital currency-related advertising.
France
The French financial regulator’s AMF annual report shows that the priorities for 2018 include “changes in the regulatory framework of ICOs”.
European Union
The EU’s fifth anti-money laundering directive came into effect on July 9th. The measures in the directive will set a new legal framework for European financial regulators to regulate digital currencies to prevent money laundering and criminal finances act.
Saudi Arabia
The Riyadh municipality in Saudi Arabia has partnered with IBM to develop a strategy to streamline government services and transactions on the blockchain.
Iran
Sadad Informatics Corporation (SIC), part of the country’s largest bank, Iranian Bank, has established a blockchain group to research the vast potential offered by new technologies.
India
An anonymous person from the Indian government told Quartz that India would not completely ban the use of digital currency, but would instead regard it as a commodity.
China
The director of the Central Bank’s Bureau of Finance and Banking said: The central bank must firmly grasp the right to issue currency. If digital currencies increasingly play the role of money, they need to be restrained and attacked.
South Korea
The Digital Currency Division policies partnered with the Innovation Finance Section of the Korea Finance Commission to target related policies.
Keeping Up with the Blockchain Giants
July 7th
The Blockchain Alliance RiskBlock is working with Accenture to expand the use of blockchain technology in the insurance sector.
July 8th
After signing a $740 million data security-related order with the Australian government, IBM recently received a $738,000 order from Delaware to help the state build a comprehensive blockchain file system.
July 9th
According to Ambcrypto, XMR is now accepted as a payment method by the German email provider Tutanota.
July 10th
A partner at Lightspeed Venture Partners said the company has raised $1.8 billion and is considering to expand into Southeast Asia and is looking to increase its investment in cryptocurrency, biotechnology, new TV streaming services and even cosmetics companies.
July 11th
HyperBlock, a well-known Canadian technology company, has completed the acquisition of CryptoGlobal, a cryptocurrency mining company, and will begin trading on the Canadian Stock Exchange today.
July 12th
Opera announced that the new version of the Android version of the Opera browser combines an easy-to-use encrypted wallet feature with support for the Ethereum web3 API.
July 13th
Swiss-based smartphone developer Sirin Labs will release a blockchain-based phone in November this year.
Hot topic of the week: Is EOS Random-access memory (RAM) used for trading or for actual use?
“One day in the blockchain space is equivalent to a year out of the space.” The conversions of hot topics in the cryptocurrency market is always unpredictable. When most people are busy looking for high-performance public chains, exchange platform tokens suddenly became the new trend. When investors rushed into various small and medium-sized exchanges, Fcoin quietly rose to the top. When exchange platform mining became the new hot topic, it was taken over by EOS: EOS’ RAM.
RAM is a very important resource in the EOS network. Creating EOS accounts, creating EOS smart contracts, and performing EOS transfers will consume memory resources. The user needs to stake a certain amount of EOS to the system account in order to obtain the corresponding memory usage right. The stake price is determined by the market demand, and the user can also transfer the memory according to real-time price.
In order to keep the supernode running efficiently, EOS’s current total RAM is temporarily set at 64G. For the programmers who are developing on EOS, the purchase of RAM is needed, and the total amount has led to the temporary scarcity of RAM on EOS. A large number of speculators have gone forward and pushed the RAM price up to 0.93EOS/KB. Compared with 0.02EOS/KB on June 20, the increase is close to 50 times.
As the cryptocurrency market has been moving at a declining rate, this issue has attracted more negative speculators. The speculators are influencing the secondary market by trading and speculating about EOS’ RAM. Developers can only helplessly pay for the high costs. As of the release of the report, the RAM usage of EOS exceeds 80%, and the number of Dapp developers in use of RAM is less than 2%.
Analyst evaluation: EOS’ exclusion of handling fees and almost real-time arrival of transactions provides users a seamless experience. The increase in RAM price has also made profits for many early investors. However, as a project that has just lifted off, the excessive development costs have prevented the wide scale development of Dapps on EOS. As for the value of EOS’ RAM, the practical demand is of utmost importance. Without the demand for the practical needs for RAM, then investing in RAM is worthless. The speculative trading of EOS RAM is simply a temporary wave that may end badly without the support of ecosystem.
Special Note: The contents and opinions of this report are for reference only and do not constitute as investment advice.
Appendix: Upcoming Crowdfunding Projects（7.14–7.20)
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*Credits go to Xuchu Zhao for his superb research!
