Weekly Report

11th August 2021

Market Moved Higher Amid Fluctuation

Abstract: The secondary market was volatile last week with some DeFi tokens of smaller market cap gaining more as the market moved higher amid fluctuation.

  • Total market value increased. Last week, the total market value of digital assets rose from US$1.58 trillion to US$1.76 trillion. Bitcoin fluctuated in a broad range from its high of over US$45,000 to its low of under US$38,000.
  • Most of the top 100 digital assets gained. Last week, among the top 100 digital assets, 83 staged growth, while 17 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 113.40EH/s.
  • Bitcoin’s on-chain activity declined and Ethereum’s on-chain activity also decreased. The Bitcoin network saw a decrease of 2.96%, 1.54% and 17.28% 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 and the number of active addresses shrank by 3.6% and 13.46% respectively with average on-chain transaction amount up by 17.34%.
  • Exchange turnover remained at the same level as last week. Last week, turnover on the 10 exchanges tracked by us remained at the same level as the week before. Binance moved down by 1.1%. Bitfinex, Bitstamp and Coinbase all recorded an increase of 0.9%, 8.1% and 4.2%.
  • Open position in futures increased to US$14.7 billion. Last week, turnover of Bitcoin futures market fell by 12.2% week-on-week, with open position up to US$14.7 billion.
  • Bitcoin and stablecoin increased to US$110.5 billion. Last week, turnover of USDT rose by US$530 million. USDC increased by US$350 million, and BUSD increased by US$90 million.
  • The market trended higher amid fluctuation. Spots turnover posted with modest changes last week. And turnover of Bitcoin futures declined whereas that of Ethereum futures rose with no significant change to open position. Total DeFi locked positions were up slightly but not as high as expected, and some DeFi tokens of smaller market cap rose more significantly. In addition, two U.S. asset managers, Invesco and Victory Capital, filed applications for Bitcoin and crypto-index ETFs with the SEC last week, bringing the total number of U.S. companies that have filed applications for cryptocurrency ETFs to about 10. Yet the SEC’s approval process was uncertain. And there remained controversy over the scope of “broker” concerning the US$28 billion of cryptocurrency tax mentioned in the U.S. infrastructure bill which may be a potential risk subject to amendments by vote this Tuesday.

 

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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