Weekly Report

5th May 2021

Ethereum on Fire

Abstract: Ethereum rose strongly. Altcoin season persists. Bitcoin’s market share continued to fall while the daily turnover of stablecoin surged.

  • Total market value increased. Last week, the total market value of digital assets increased significantly from US$1,900 billion to US$2,223 billion, back to the US$2 trillion mark. Bitcoin rose sharply, reaching a high of around US$58,800 on Monday.
  • Most of the top 100 digital assets gained. Last week, among the top 100 digital assets, 94 staged growth, while 6 witnessed decline.
  • Bitcoin’s hash rate rose. The average hash rate of Bitcoin grew week-on-week. The weekly average hash rate was about 162.63 EH/s, up 7.3%.
  • Bitcoin’s on-chain activity declined and Ethereum’s on-chain activity increased. The Bitcoin network saw a 0.5% increase, 2.4% increase and 24.7% decrease in average number of transfers, number of active addresses and average transfer amount, respectively. In the Ethereum network, the average number of on-chain transactions dropped 2.5%, with the number of active addresses and average on-chain transaction amount increasing 1.1% and 26.5%, respectively.
  • Stock exchanges posted a combined 19.6% decline in turnover. Last week, turnover on the 10 exchanges tracked by us decreased by 19.6% week-on-week. Binance recorded a decrease of 17.6%. Bitfinex, Bitstamp and Coinbase recorded a 33.1% decline, a 25.1% decline and a 20.0% decline, respectively.
  • Open position in futures rose to US$20.3 billion. Last week, turnover of Bitcoin futures market declined 31% week-on-week, with open position up to US$2 billion.
  • Bitcoin and stablecoin rose to US$79.3 billion. Last week, turnover of USDT increased by US$2 billion. USDC increased by US$3.1 billion, while BUSD increased by US$700 million.
  • Ethereum on fire. The market performed well last week, with Ethereum unusually strong as EIP-1559 nears implementation. This also drove the performance of various segments such as DeFi, NFT and some public chains. Bitcoin’s market share has dropped to 47.8%, with room to spare from the 2018 low of 33.5%. Alt season is still going on as we expected. The market starts to expect that at its peak in the current cycle, the market share of Bitcoin will be lower than that in the previous cycle. Regardless of the exact value, however, it is most important to be proactive and respond properly. And a correction would also be triggered if the upward momentum is too strong.

    Digital Currency Market Capitalization Change:

    Source: HashKey Capital Research, Coin360


    Bitcoin Futures Daily Trading Volume:

    Source: HashKey Capital Research, The Block