Weekly Report

21st July 2021

Overall Market Trading is Pretty Quiet

Abstract: Turnover continued to fall last week with few surprises. The NFT game sector was a bright spot driven by the game Axie Infinity. Meanwhile, this month will see Grayscale’s big unlocking of GBTC but the impact on the market is uncertain.

  • Total market value declined. Last week, the total market value of digital assets declined from US$1.35 trillion to US$1.24 trillion. Bitcoin fluctuated in a broad range, dropping from US$34,000 to around US$31,000.
  • Most of the top 100 digital assets fell. Last week, among the top 100 digital assets, 11 staged growth, while 89 witnessed decline.
  • Bitcoin’s hash rate rose. The average hash rate of Bitcoin grew week-on-week. The weekly average hash rate was about 102.34EH/s.
  • Bitcoin’s on-chain activity grew and Ethereum’s on-chain activity decreased. The Bitcoin network saw a 0.21% decrease, 4.56% decrease and 15.9% increase 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 by 1.54% with the number of active addresses and average on-chain transaction amount also down by 3.4% and 5.02%, respectively.
  • Stock exchanges posted a combined 12.8% decline in turnover. Last week, turnover on the 10 exchanges tracked by us decreased 12.8% week-on-week. Binance moved down by 11.1%. Bitfinex, Bitstamp and Coinbase all recorded a decrease of 33.3%, 13.0% and 14.4%, respectively.
  • Open position in futures maintained at US$11.8 billion. Last week, turnover of Bitcoin futures market declined by 11.9% week-on-week, with open position remaining at US$11.8 billion.
  • Bitcoin and stablecoin increased to US$107.6 billion. Last week, turnover of USDT reduced by US$220 million. USDC increased by US$530 million, and BUSD increased by US$550 million.
  • Certain sub-sectors showed more active performances. Last week, the NFT game sector outperformed driven by Axie Infinity, which led the growth of the entire game sector by surpassing King of Glory in terms of daily turnover last week. In addition, stablecoins such as USDT recorded slowdown in new issue due to domestic OTC market restrictions in China and other reasons. Also this month will see the large unlocking of GBTC by Grayscale, but the impact on the market remains uncertain. The secondary market’s turnover continued to fall with downcast trading mood 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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