Weekly Report

15th September 2021

Lack of New Market Stimuli

Abstract: The secondary market saw a general decrease as there was lack of supporting points for new highs. The U.S. Department of the Treasury will decide whether to initiate a review of risky stablecoins like Tether. In addition, public chain ecosystems, cross-chain bridges and Layer2 became points of interest in the market last week.

  • Total market value declined. Last week, the total market value of digital assets declined from US$2.22 trillion to US$1.99 trillion. Bitcoin fell significantly from US$52,000 to below US$45,000.
  • Most of the top 100 digital assets fell. Last week, among the top 100 digital assets, 21 staged growth, while 79 witnessed decline.
  • Bitcoin’s hash rate rose. The average hash rate of Bitcoin grew slightly week-on-week. The weekly average hash rate was about 133.80EH/s.
  • Bitcoin’s and Ethereum’s on-chain activity increased. The Bitcoin network saw a decrease of 2.62% and 2.42%, and an increase of 14.6% in average number of transfers, average number of active addresses and average transfer amount, respectively. In the Ethereum network, the average number of on-chain transactions grew 2.01% with the number of active addresses and the average on-chain transaction amount up by 5.11% and 21.91%, respectively.
  • Exchange turnover increased. Last week, turnover on the 10 exchanges tracked by us rose. Binance moved up by 32.1%. Bitfinex, Bitstamp and Coinbase recorded an increase of 46.4%, 44.4% and 29.0%, respectively.
  • Open position in futures declined to US$15 billion. Last week, turnover of Bitcoin futures market grew 15.3% week-on-week, with open position down to US$15 billion.
  • Bitcoin and stablecoin increased to US$119 billion. Last week, turnover of USDT rose by US$1.3 billion. USDC increased by US$1.5 billion, and BUSD decreased by US$140 million.

The market has cooled down due to lack of new stimuli for growth. Market value dropped to roughly US$2 trillion last week as the secondary market saw a larger decline in general. Spot turnover, and also turnover of Bitcoin and Ethereum futures rose while open positions in futures fell week-on-week. Public chain ecosystems such as Near, Solana and Carnado, as well as cross-chain bridges like Moonriver, and Arbitrum as the Ethereum Layer 2 network, drew most of the market attention last week. At the regulatory level, the U.S. Department of the Treasury will decide whether to initiate a review of stablecoins such as Tether, which have certain potential risks. The NFT sector cooled off last week, with Opensea turnover down by about 70% from its peak. Overall, the market has started to cool down due to lack of stimuli and supporting points for new highs. And market volatility is expected to continue for some time.

 

Digital Currency Market Capitalization Change:

Source: HashKey Capital Research, Coin360

 

Bitcoin Futures Daily Trading Volume:

Source: HashKey Capital Research, The Block

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