Weekly Report

8th September 2021

Trading Volume Picks Up

Abstract: The secondary market went up in general with trading volume picking up. On the policy front, the SEC is investigating Uniswap Labs but is relatively neutral without any predisposition at this point. In addition, the NFT project Loot came in the market’s limelight last week.

  • Total market value increased. Last week, the total market value of digital assets rose from US$2.02 trillion to US$2.22 trillion. Bitcoin rose significantly, jumping from US$46,000 to US$50,000.
  • Most of the top 100 digital assets gained. Last week, among the top 100 digital assets, 93 staged growth, while 7 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 132.16EH/s.
  • Bitcoin’s on-chain activity grew and Ethereum’s on-chain activity increased. The Bitcoin network saw an increase of 4.84%, 7.81% and 8.26% 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 shrank by 4.00%, with the number of active addresses down by 5.59% and average on-chain transaction amount up by 10.37%.
  • Exchange turnover increased. Last week, turnover on the 10 exchanges tracked by us rose. Binance moved up by 10.4%. Bitfinex, Bitstamp and Coinbase recorded an increase of 27.3%, 6.5% and 36.2%, respectively.
  • Open position in futures increased to US$18.1 billion. Last week, turnover of Bitcoin futures market grew by 0.9% week-on-week, with open position up to US$18.1 billion.
  • Bitcoin and stablecoin increased to US$116.0 billion. Last week, turnover of USDT increased by US$1.3 billion. USDC increased by US$540 million, and BUSD increased by US$340 million.

Trading volume picked up. Market value rose to roughly US$2.2 trillion last week with overall better performance in the secondary market. Spot turnover rebounded and both Bitcoin and Ethereum futures displayed higher turnover. Open positions in futures also grew week-on-week. The text-based NFT project Loot was one of the market focuses last week. Its floor price has once risen to 20 ETH and its trading volume topped US$100 million on September 3. A significant amount of derivatives followed, causing widespread discussions in the investor communities, and future developments remains to be seen. In addition, on the regulatory front, the US SEC is investigating Uniswap Labs, the developer team behind Uniswap, to understand the relationship between DeFi’s operation and future regulation. The regulator currently adopts a relatively neutral position, with no direct impact on the market. Overall, there were few market hotspots last week. With uncertainty about Bitcoin beyond the US$50,000 level, some market volatility is expected to continue for some time.

 

Digital Currency Market Capitalization Change:

Total market capitalization 2021-09-08

Source: HashKey Capital Research, Coin360

 

Bitcoin Futures Daily Trading Volume:

Volume of Bitcoin futures

Source: HashKey Capital Research, The Block

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