Standard Kepler

Crypto Transaction Volumes Soar 50%

04/09 – 04/15

MARKET HIGHLIGHTS

  • Strong rebound for BTC and ETH, as well as transaction volumes: As of 15 April, the market capitalization of cryptocurrencies amounted to 323.87 bn, having surged 23.6% compared to last week. BTC settled at $8096.05, a 16.1% increase. ETH rose by 31.3% to $511.33. The weekly transaction volume for top 100 crypto assets amounted to 99.46 bn, a 51.2% increase compared to last week.
  • Buterin voiced his opposition to declaring war on Ethash ASIC miners: Buterin added that the war declared on Ethash ASIC miners will be inconsistent with the long term roadmap of Ethereum. For Bitcoin hashrate distribution, BTC.com increased its dominance with a 27.4% market share.
  • Malta is proactive in adopting blockchain technology: Following the release of a DLT framework by Malta, OKEx decided to follow Binance and announced the move of its base of operations to Malta.
  • Intensified VC funding in blockchain sector: The blockchain sector attracted more VC funding this week, as exemplified by the actions from the Chinese government, and Ripple.
  • Marketplace dominated in ICO projects this week: 49 ICOs ended this week with 36% of them being marketplace projects. The ICO projects were geographically fragmented with 15% of them being registered in the US. Besides, the % of funds raised towards fundraising goals for ICO projects kept their strong momentum this week.


INDUSTRY OVERVIEW

  • Market cap rebounded for most crypto assets: According to Coinmarketcap, as of 15 April the total market capitalization of cryptocurrencies amounted to 323.87 bn, having surged 23.6% compared to last week. Among the top 100 crypto assets, 99 of them surged in market capitalization with 54 of them surging more than 30%. MITH was the top gainer with a 242.17% increase.
  • Leaping 7 day transaction volumes for crypto assets: The 7 day transaction volumes for top 100 cryptocurrencies this week was 99.46 bn, a 51.2% weekly increase. 82 out of the top 100 crypto assets surged in transaction volume with 44 rising more than 50%. The most notable increase for 7 day transaction volume was GNT (14.6x), while the top loser in 7 day transaction volume was MEE (a 99.9% decrease).


BTC & ETH MINING

  • BTC.com increased its dominance in the Bitcoin mining pool: BTC.com increased its dominance with a 27.4% market share, compared to 25.75% last week. AntPool and BTC.TOP were the 2nd and 3rd largest Bitcoin mining pools this week, with 14.6% and 11.9% market shares.
  • Mining was more difficult for BTC while slightly less for ETH: The mining difficulty for Bitcoin increased by 2.6%, and this was associated with the 1.6% increase in hash rate. For Ethereum, it was less difficult for ETH miners as the hash rate decreased by 2.97% this week. This means less power is consumed when mining the same amount of ETH compared to previous weeks.
  • Buterin voiced his opposition to declaring war on Ethash ASIC miners: Ethereum creator Vitalik Buterin claimed that the war declared on ASIC miners will be chaotic and complex. Besides, this war is inconsistent with Ethereum’s long-term roadmap which includes a transition away from mining and to a Proof-of-Stake consensus algorithm.


LATEST NEWS AT A GLANCE

European nations have been proactive in promoting Blockchain technology, especially Malta. Malta’s legal framework for DLT not only provides ICO regulations, but also shows ample support for the adoption of Blockchain technology. In the crypto exchange sector, Malta has indicated a friendly attitude towards enabling fiat-to-cryptocurrency deposits and withdrawals in a few months. This further helps to foster a move of major crypto exchange like OKEx to Malta, following the move of Binance in the end of March.

Industry Updates

  • World’s second largest crypto exchange OKEx announced move to ‘Blockchain Island’ of Malta: OKEx is confident in the Maltese government’s approach and decided to make Malta a foundation for further OKEx growth.
  • 22 Countries signed declaration for ‘European Blockchain Partnership’: The Partnership will be a “vehicle for cooperation amongst Member States to exchange experience and expertise in technical and regulatory fields”. This partnership will also provide the basis for launching EU-wide Blockchain applications across the Digital Single Market for the benefit of the public and private sectors.
  • Chinese blockchain industrial park opened with $1.6 bn partially govn’t-backed fund: 30% of total funds are financed by Yuhang District government, and the Zhejiang Shimang Blockchain Strategic Development Research Institute was also established.
  • Ripple invested $25 mn in XRP in blockchain venture fund: The fund supports examining new use cases for the XRP Ledger and Inter-ledger Protocol, funding startups, and is to focus on the “development of the Blockchain space”.

Regulatory Updates

  • Malta determined to become the ‘Blockchain Island’: Malta has been proactive and efficient in its efforts to provide a legal framework for DLT. The proposed legislation includes the establishment of the Malta Digital Innovation Authority (MDIA), the Technology Arrangements and Service Providers bill, and the Virtual Currencies bill.
  • UAE Government launched blockchain strategy 2021: The strategy rests on four fundamental principles, focusing on “citizen and resident happiness, government efficiency, advanced legislation, and global entrepreneurship”. It is estimated that the adoption of blockchain technology can save AED 11 bn annually in circulating government documents.


ICO RECAP

  • Marketplace retained its leadership in industries application for ICOs: There were 74 ICO projects ending this week with 27 of them being marketplace projects (36%). This was followed by Social and Marketing (14%). The ICOs were geographically fragmented this week, with US (15%) the leader, followed by UK (11%) and Singapore (9%).
  • % of ICO fundraising completion kept its strong momentum: Followed by the bullish cryptocurrencies market this week, the % of funds raised towards fundraising goals retained its high momentum, with “Current” successfully raising all of its funds.


OUTLOOK

Apart from setting up regulations on cryptocurrencies, nations are also gearing up in forming alliances to promoting Blockchain technology. This is supported by the Blockchain Partnership of 22 European countries. To maintain competitiveness of adopting Blockchain technology, such partnership activities are likely to intensify among nations in the future.

Moreover, nations and industry giants fastened their pace of venture funding blockchain projects. As seen from Ripple and the Blockchain Industrial Park opened in China, it is expected that the blockchain sector will become an important source of  VC funding.

© 2018 Standard Kepler