Weekly Report

6th October 2021

Market Turnover Declined

Abstract: The secondary market went up in general though with a decrease in turnover. At the policy level, the Fed said stablecoin should be regulated. We need to keep an eye on subsequent policies. Besides, Axie Infinity’s launch of AXS staking and Dex became the hot topic last week.

  • Total market value increased. Last week, the total market value of digital assets rose from US$1.83 trillion to US$2.04 trillion. Bitcoin fluctuated in a broad range of US$40,000 to US$48,000.
  • Most of the top 100 digital assets gained. Last week, among the top 100 digital assets, 86 staged growth, while 14 witnessed decline.
  • Bitcoin’s hash rate rose. The average hash rate of Bitcoin grew week-on-week. The weekly average hash rate was about 146.12EH/s.
  • Bitcoin’s on-chain activity grew and Ethereum’s on-chain activity decreased. The Bitcoin network saw an increase of 4.6%, 7.2% and 18.63% 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, the number of active addresses and the average on-chain transaction amount fell by 2.34%, 0.53% and 22.81%, respectively.
  • Stock exchanges showed a decline in turnover. Last week, turnover on the 10 exchanges tracked by us decreased. Binance moved down by 27.9%. Bitfinex, Bitstamp and Coinbase recorded a decrease of 41.1%, 32.4% and 35%, respectively.
  • Open position in futures increased to US$15.5 billion. Last week, turnover of Bitcoin futures market declined 33.4% week-on-week, with open position up to US$15.5 billion.
  • Bitcoin and stablecoin decreased to US$122.1 billion. Last week, turnover of USDT reduced by US$510 million. USDC increased by US$1.1 billion, and BUSD increased by US$630 million.
  • Turnover declined. Market value recovered to below US$2 trillion last week as the secondary market saw a general rise. Spot turnover, and turnover of Bitcoin and Ethereum futures fell while open positions in futures increased. At the regulatory level, the Fed indicated that the central bank’s digital currency will perform some of the existing cryptocurrency functions and that it had no intention of banning cryptocurrencies, but crypto activity should be regulated. And stablecoin risks require ongoing attention. In addition, Axie Infinity announced the launch of AXS staking last week, which surpassed 10 million coins worth over US$1.1 billion in the first two days of the staking launch. A decentralized exchange designed for Axie Infinity combining Ronin was also launched, causing the price of AXS coins to break new highs. The third-quarter revenue of Axie Infinity exceeded US$780 million, an increase of 480 times compared to the second quarter.


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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