Weekly Report

18th August 2021

Market Was More Active

Abstract: The secondary market performed generally well last week, but turnover was more subdued. Some sub-sectors showed higher vitality with more positive market sentiment as well.

  • Total market value increased. Last week, the total market value of digital assets rose from US$1.76 trillion to US$1.93 trillion. Bitcoin saw a bigger increase, reaching a high of around US$48,000.
  • Most of the top 100 digital assets gained. Last week, among the top 100 digital assets, 93 staged growth, while 3 witnessed decline.
  • Bitcoin’s hash rate rose. The average hash rate of Bitcoin grew week-on-week. The weekly average hash rate was about 118.94EH/s.
  • Bitcoin’s on-chain activity declined and Ethereum’s on-chain activity increased. The Bitcoin network saw a 2.68% increase, 2.33% increase and 12.43% 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 fell 1.47%, with the number of active addresses down by 8.91% and average on-chain transaction amount up by 5.89%.
  • Stock exchanges posted an increase in turnover. Last week, turnover on the 10 exchanges tracked by us rose. Binance moved up by 24.6%. Bitfinex, Bitstamp and Coinbase diverged in performance with a 3.5% decline, a 13.1% increase and a 20.6% increase, respectively.
  • Open position in futures increased to US$16.5 billion. Last week, turnover of Bitcoin futures market fell by 12.0% week-on-week, with open position up to US$16.5 billion.
  • Bitcoin and stablecoin increased to US$111.5 billion. Last week, turnover of USDT rose by US$1.2 billion. USDC decreased by US$110 million, and BUSD fell by US$270 million.
  • The market was more active. The market saw a general rise last week with the market value of over two trillion, but turnover was more subdued. Spots turnover increased while turnover of Bitcoin and Ethereum futures decreased, and open positions in futures grew at a modest rate. Due to a senator’s opposition, the cryptocurrency tax provision failed to be included in the US Infrastructure Investment Bill. To ease the concern of the crypto industry that the overly broad definition of brokers in the Infrastructure Bill passed by the Senate previously might give rise to certain issues, the U.S. Department of the Treasury will introduce a set of guidelines on crypto tax rules, but it will take some time to go through from legislation to implementation. In addition, trading on the NFT sub-sector remained very active last week, with OpenSea surpassing 100,000 active trading users. And turnover for the sub-sector reached about US$880 million in August, setting a monthly record high. The secondary market performed generally better, with a bullish mood in market data as well as more positive sentiment.

 

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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