Weekly Report

14th July 2021

Outperformance of Certain Sub-sectors

Abstract: Last week saw an overall quiet market without any signs of picking up in turnover. However, the NFT sector was a bright spot driven by the game Axie Infinity. Meanwhile, Bullish, an exchange owned by Circle and Block.One, will be listed on Nasdaq through SPAC, but its stimulus effect on market was limited.

  • Total market value declined slightly. Last week, the total market value of digital assets fell from US$1.39 trillion to US$1.35 trillion. Bitcoin fluctuated in a broad range from US$32,300 to US$35,000.
  • Performance of top 100 digital assets was mixed. Last week, among the top 100 digital assets, 42 staged growth, while 58 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 96.67 EH/s.
  • Bitcoin’s on-chain activity declined and Ethereum’s on-chain activity also decreased. The Bitcoin network saw a 1.27% increase, 4.31% decrease and 31.5% 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 grew by 0.23%, with the number of active addresses down by 12.34% and average on-chain transaction amount down by 4.1%.
  • Stock exchanges posted a combined 9.5% decline in turnover. Last week, turnover on the 10 exchanges tracked by us tumbled by 9.5% week-on-week. Binance slumped by 10.8%. Bitfinex, Bitstamp and Coinbase diverged in performance with a 76.2% increase, a 8.7% decrease and a 15.8% decline, respectively.
  • Open position in futures fell to US$11.8 billion. Last week, turnover of Bitcoin futures market decreased by 20.4% week-on-week, with open position down to US$11.8 billion.
  • Bitcoin and stablecoin rose to US$106.9 billion. Last week, turnover of USDT reduced by US$170 million. USDC increased by US$610 million, and BUSD increased by US$10 million.
  • Individual sub-sectors outperformed. Last week, the NFT sector outperformed driven by the “Play to Earn” game Axie Infinity, which generally maintained more than 200,000 daily active users and ranked first in the NFT sector in terms of 1-day, 7-day and 30-day trading volume with good data performance. In addition, other small sub-sectors such as KuCoin also performed well. Circle and Block.One’s exchange Bullish will be listed on Nasdaq through SPAC, but its stimulus effect on market was limited. The secondary market failed to show any signs of picking up in terms of turnover due to subdued market sentiment and is expected to remain range bound for a period of 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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