The report covers data on the crypto market movements during 2018. Special focus has been given to the analysis of changes taking place over July 1-8, 2018.
Information as of July 9, 2018
This report was created by:
- Professor Dmitrii Kornilov, Doctor of Economics, Member of the Russian Academy of Natural Sciences, and Leading Analyst at ICOBox;
- Dima Zaitsev, PhD in Economics, Head of International Public Relations and Business Analytics Department Chief at ICOBox;
This report presents data on cryptocurrency market changes during 2018. Special emphasis has been placed on an analysis of the changes that took place during the period July 1-8, 2018.
1. General cryptocurrency and digital assets market analysis. Market trends
1.1 General cryptocurrency and digital assets market analysis
Table 1.1. Trends in capitalization of the cryptocurrency market and main cryptocurrencies from April 1, 2018, to July 8, 2018*
|Parameter||1-Apr-18||1-May-18||MoM, %||1-June-18||MoM, %||1-July-18||MoM, %||8-July-18||DoD, %|
|1||Total market capitalization, USD billion||263.9||423.2||60.4%||331.3||-21.7%||257.7||-22.2%||278.3||8.0%|
|2||Altcoin market capitalization, USD billion||145.2||265.8||83.1%||203.2||-23.6%||147.9||-27.2%||160.8||8.7%|
|Altcoin dominance, %||55.0%||62.8%||–||61.3%||–||57.4%||–||57.8%||–|
|3||Bitcoin price, $||7 003.1||9 251.5||32.1%||7 500.7||-18.9%||6 411.7||-14.5%||6 857.8||7.0%|
|Bitcoin market capitalization, USD billion||118.7||157.4||32.6%||128.0||-18.6%||109.8||-14.2%||117.5||7.0%|
|Bitcoin dominance, %||45.0%||37.2%||–||38.6%||–||42.6%||–||42.2%||–|
|4||Ethereum price, $||397.3||670.5||68.8%||578.7||-13.7%||455.2||-21.3%||492.1||8.1%|
|Ethereum market capitalization, USD billion||39.1||66.5||69.8%||57.7||-13.1%||45.7||-20.8%||49.5||8.2%|
|Ethereum dominance, %||14.8%||15.7%||–||17.4%||–||17.7%||–||17.8%||–|
|5||Bitcoin Cash price, $||688.0||1 348.6||96.0%||995.7||-26.2%||749.2||-24.8%||775.8||3.6%|
|Bitcoin Cash market capitalization, USD billion||11.7||23.1||96.6%||17.1||-25.9%||12.9||-24.5%||13.4||3.6%|
|Bitcoin Cash dominance, %||4.4%||5.5%||–||5.2%||–||5.0%||–||4.8%||–|
|6||Litecoin price, $||116.9||148.3||26.9%||118.0||-20.4%||81.5||-30.9%||86.3||5.8%|
|Litecoin market capitalization, USD billion||6.5||8.4||27.9%||6.7||-19.8%||4.7||-30.4%||4.9||6.0%|
|Litecoin dominance, %||2.5%||2.0%||–||2.0%||–||1.8%||–||1.8%||–|
|7||Volume (24h) 4 crypto, USD billion||6.4||11.8||84.2%||7.7||-35.0%||7.1||-7.1%||5.3||-25.8%|
|Market cap 4 crypto, USD billion||189.7||279.7||47.5%||226.9||-18.9%||186.7||-17.7%||199.7||7.0%|
|ZAK-4 Crypto index**||3.4%||4.2%||–||3.4%||–||3.8%||–||2.6%||–|
|4 crypto dominance, %||71.9%||66.1%||–||68.5%||–||72.4%||–||71.8%||–|
|8||Volume (24h) 8 crypto, USD billion||7.2||16.0||121.3%||9.2||-42.4%||8.2||-10.5%||6.1||-25.9%|
|Market cap 8 crypto, USD billion||208.7||319.5||53.1%||255.9||-19.9%||205.9||-19.5%||220.5||7.1%|
|ZAK-8 Crypto index***||3.5%||5.0%||–||3.6%||–||4.0%||–||2.8%||–|
|8 crypto dominance, %||79.1%||75.5%||–||77.2%||–||79.9%||–||79.2%||–|
* Data as of July 8, 2018 (all figures calculated at 03:00 UTC)
** Since December 1, 2017, the ZAK-4 index has been calculated using the cryptocurrencies Bitcoin, Ethereum, Ripple, and Bitcoin Cash.
*** When calculating the ZAK-8 index, the cryptocurrencies with the largest capitalization are used. At present (July 8, 2018), the cryptocurrencies Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, Stellar, and EOS are used to calculate the ZAK-8 index.
Data source: coinmarketcap.com
When analyzing cryptocurrency market trends, the period from July 1-8, 2018, is used, while the calendar week (July 2-8, 2018) is used for the news overview and the analysis of the ICO market.
Cryptocurrency market capitalization increased over the analyzed period (July 1-8, 2018) and as of 03:00 UTC equaled $278.3 billion (see Table 1.1). The growth compared to the start of the month equaled around $20 billion.
The dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on July 8, 2018, equaled 71.8% and 79.2%, respectively, with bitcoin dominance sitting at 42.2% (see Table 1.1). Last week’s growth leaders from among the top 500 cryptocurrencies by capitalization showed an increase of more than 100%: Sakura Bloom (+290%), GoChain (+148.3%), Hydrogen (+125.89%), and Metaverse ETP (+116.24%).
During the period from July 1-8, 2018, cryptocurrency market capitalization fluctuated from $252.5 billion (min) to $280.8 billion (max) (Fig. 1a), i.e. within a range of $28.3 billion. For its part, bitcoin capitalization fluctuated from $107.7 billion (min) to $117.9 billion (max), i.e. within a range of $10.2 billion.
The three vertical jumps (shown with the arrows in Fig. 1a) should be noted. These jumps resulted in an increase in capitalization by $5.3 billion (first jump), $3.4 billion (second jump), and $4.1 billion (third jump).
Figure 1a. Cryptocurrency market capitalization since July 1, 2018
Figure 1b shows bitcoin capitalization (red line) superimposed on cryptocurrency market capitalization (blue line). The lines are practically identical.
Figure 1b. Capitalization of the cryptocurrency market (blue) and bitcoin (red) since July 1, 2018
The main jumps in capitalization took place on July 2, 4 and 8 (see Fig. 1b).
In particular, on July 2 the oldest Chinese cryptocurrency exchange BTCC published news on the opening of its new platform. BTCC announced zero trading fees for the first three months. BTCChina was closed in September 2017 due to the bans introduced in the country on cryptocurrency trading.
On July 2 it was also published that “Coinbase Custody is Officially Open For Business.” Coinbase is the largest American cryptocurrency company, and has begun to accept funds from a wide range of institutional players in the USA and EU. It was stated that in the coming weeks Coinbase will continue onboarding world-class clients (including leading crypto hedge funds, exchanges and ICO teams), and that the company is currently responsible for the custody of more than $20 billion in cryptocurrency assets.
As reported by bitcoinist.com, Flow Traders NV, the largest exchange-traded fund (ETF) in Europe, has offered its clients the chance to buy and sell cryptocurrencies on regulated stock exchanges. It is the first company to begin working with bitcoin and Ethereum exchange-traded notes (ETN).
Therefore, the sharp jumps are associated with the activity of the major institutional players entering the cryptocurrency market.
The rise and fall of cryptocurrency prices over the past seven days (July 1-8, 2018)
During the period from July 1-8, 2018, the change in the prices of cryptocurrencies in the top 500 ranged from -51.51% (Tezos) to +290% (Sakura Bloom).
Sakura Bloom was a cryptocurrency with fairly small trading volumes, but after July 5 its 24-hour trading volumes increased to $200,000-$500,000. This cryptocurrency showed the largest price growth, which was caused by the favorable news on collaboration (Twitter). Tezos, on the other hand, demonstrated the worst result. Due to prior problems related to a disagreement among the development team, the price fell by more than 50% as Tezos launched its main network and trading in the cryptocurrency began on exchanges, leading to fall in price.
The price of 364 cryptocurrencies and digital assets from the top 500 showed growth, including 79 from the top 100.
Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion increased from 18 to 19, with the price of all of them appreciating except Tezos (-51.51%), VeChain (-1.44%), Binance Coin (-1.17%), and Tether (the price of which is tied to the US dollar).
The coins and tokens from the top 100 that demonstrated the largest price growth are given in Fig. 2.
Biggest gainers and losers over the week (July 1-8, 2018)
The prices of some cryptocurrencies may fluctuate from -50% to +50% over the course of a single day. Therefore, when analyzing cryptocurrency price trends, it is advisable to use their average daily amounts on various cryptoexchanges.
Below we consider the 10 cryptocurrencies that demonstrated the most significant change in price over the past week (Fig. 2-3). In this regard, only those coins and tokens included in the top 100 (Fig. 2, Fig. 3) in terms of market capitalization were considered.
Figure 2. Largest growth in prices over the past week
Tables 1.2 and 1.3 show the possible factors or events that might have influenced the fluctuation in prices for certain cryptocurrencies. Table 1.4 shows the possible factors or events that might have influenced the cryptocurrency market in general.
Table 1.2. Factors or events that might have led to a growth in cryptocurrency prices over the past week
|№||Coins and tokens||Symbol||Price growth over the week, %||Average price in $ on July 8, 2018||Market capitalization, USD billion||Factors or events that might have led to a growth in cryptocurrency prices over the past week|
|1||Bitcoin Diamond||BCD||51.12%||$2.93||0.45||The price of Bitcoin Diamond increased thanks to a favorable report on the progress being made in development published on July 6 (Twitter) |
DigiByte announced news on its partnership with UTRUST (Twitter) on July 6, after which its price began to increase.
The prices of Gas and Neo increased due to the start of initiatives to increase the decentralization of the NEO network (https://twitter.com/NEO_Blockchain/status/1014507121004634112).
The price of KuCoin increased after the announcement of its partnership with HyperQuant on July 4 (Twitter)
Also, the price of Loom Network increased on the back of news on the upcoming release of the Loom SDK (Twitter)
Qash (QASH) is a specially created digital currency that will be used as a means of payment on the Liquid platform.
Polymath is a digital token for a platform that wants to create a single site for trading in blockchain securities.
Veritaseum (VERI) is a decentralized autonomous platform that works based on smart contracts.
Electroneum (ETN) is an anonymous cryptocurrency that works on its own blockchain based on the Bytecoin blockchain.
A depreciation in price was seen last week for 136 coins and tokens from the top 500 cryptocurrencies and digital assets by capitalization. The ten cryptocurrencies from the top 100 that experienced the most noticeable drops in price are shown in Fig. 3 and Table 1.3.
Figure 3. Largest fall in prices over the past week
|№||Coins and tokens||Symbol||Fall in price over the week, %||Average price in $ on July 8, 2018||Market capitalization, USD billion||Factors or events that might have led to a fall in cryptocurrency prices over the past week|
Tezos showed the worst result, with its price dropping by more than 50% due to prior problems related to a disagreement among the development team as Tezos launched its main network and trading in the cryptocurrency began on exchanges, leading to fall in price.
Pundi X is a digital token based on a protocol that is part of the Pundi X ecosystem and acts as the means of payment on this platform.
The MOAC cryptocurrency is a digital token of a platform that is striving to create the premier platform for developing decentralized apps using smart contracts.
The Loopring cryptocurrency is the digital token of a site for trading tools produced on the Ethereum platform and other tools using the ERC20 protocol.
The Ontology cryptocurrency is part of a site that creates the conditions for implementing blockchain technology in all lines of business in the world.
The Power Ledger (POWR) cryptocurrency is a platform where anyone who wishes can purchase or sell electricity.
The Nebulas cryptocurrency, which holds 66th place in the ranking by capitalization, is the token of a platform for the search for required information among blockchain projects.
Bitcoin Private (BTCP) is a first-of-its-kind hard fork merger of Bitcoin (BTC) and Zclassic (ZCL). The goal was to unite the confidentiality functions of Zclassic with the stability, security and market recognition of Bitcoin.
The Cryptonex (CNX) cryptocurrency is a digital currency that is fully decentralized and was developed on a unique platform.
Steem (STEEM) is a social network as well as a platform based on blockchain technology where each participant can receive rewards.
Data source: coinmarketcap.com
The change in price was calculated based on average daily data
Table 1.4 shows events that took place from July 2-8, 2018, that had an impact on both the prices of the dominant cryptocurrencies and the market in general, with an indication of their nature and type of impact.
Table 1.4. Key events of the week having an influence on cryptocurrency prices, July 2-8, 2018
|№||Factors and events |
(link to source)
|Date of news||Description||Nature of impact||Type of impact|
|1.||Euro Parliament: Cryptocurrencies Not a Threat to Central Banks [source: Cryptovest.com]||July 2, 2018||According to experts, the crypto sphere is not big enough to threaten national currencies. At the same time, the parliamentarians note that cryptocurrencies have a positive effect on the global economy.||Market ⇑||Favorable|
|2.||Microsoft Kooperiert mit Ernst & Young für die Einführung von Blockchain-basiertem DRM für XBOX [source: Coincierge.de]||July 2, 2018||Microsoft is counting on the technology making it possible to optimize the system of payments to game developers, and plans to subsequently built one of the largest blockchain ecosystems in the world.||Market ⇑||Favorable|
|3.||European Banks Complete ‘Real-Life’ Cross-Border Blockchain Transactions [source: Blockchaintechnology-news.com]||July 3, 2018||A group of nine European banks have used the we.trade blockchain platform to perform the first real-time cross-border transactions. The system is currently working in 11 European countries, but the developers plan to expand it.||Market ⇑||Favorable|
|4.||Japan’s Financial Regulator Considers Revising Crypto Exchange Regulation: Report [source: CCN.com]||July 4, 2018||The Japanese regulator may change the legal status of cryptocurrencies due to security problems on the country’s cryptoexchanges.||Market||Unfavorable|
|5.||South Korea Launches Investigation into Crypto Exchanges’ Management of Personal Data [source: Btcmanager.com]||July 4, 2018||The crypto companies guilty of breaking the laws on personal data can expect severe sanctions.||Market ⇓||Unfavorable|
|6.||‘A New Era for Capital Markets’: The Swiss Stock Exchange is Launching its Own Cryptocurrency Exchange [source: uk.businessinsider.com]||July 6, 2018||Switzerland, along with Gibraltar and Malta, heads the list of the most cryptocurrency friendly countries in Europe. It is not surprising that the country was one of the first to decide to unite the digital and traditional financial spheres.||Market ⇑||Favorable|
To analyze trading activity on cryptocurrency exchanges, the ZAK-n Crypto index is calculated (see the Glossary). The values of the ZAK-4 Crypto and ZAK-8 Crypto indices are presented in Tables 1.1, 1.5.a, and 1.5.b. In July the 24-hour trading volumes (Volume 24h) for the four dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple) equaled from $5.3 billion to $7.6 billion (Table 1.5.a). The value of the daily ZAK-4 Crypto ranged from 2.6% to 3.9% of capitalization. The highest trading volume was seen on July 5.
Table 1.5.a. Daily ZAK-4 Crypto index calculation (from July 1-8, 2018)
|Crypto||Bitcoin (BTC)||Ethereum (ETH)||Bitcoin Cash (BCH)||Ripple (XRP)||4 Crypto|
|Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Volume (24h) 4 crypto||Market cap 4 crypto||ZAK-4 crypto index|
|Date*||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||USD billion||USD billion||%|
|Jul 8, 2018||6 858||3.4||117.5||492||1.3||49.5||776||0.3||13.4||0.49||0.2||19.3||5.3||199.7||2.6%|
|Jul 7, 2018||6 669||4.0||114.3||474||1.4||47.7||737||0.8||12.7||0.48||0.2||18.8||6.3||193.4||3.3%|
|Jul 6, 2018||6 639||4.3||113.7||474||1.6||47.7||748||0.4||12.9||0.48||0.2||18.9||6.6||193.2||3.4%|
|Jul 5, 2018||6 600||5.0||113.1||467||1.8||47.0||763||0.5||13.1||0.49||0.3||19.3||7.6||192.4||3.9%|
|Jul 4, 2018||6 551||4.2||112.2||464||1.5||46.6||758||0.4||13.0||0.49||0.3||19.1||6.5||191.0||3.4%|
|Jul 3, 2018||6 597||4.7||113.0||475||1.7||47.8||775||0.5||13.3||0.49||0.4||19.1||7.2||193.2||3.8%|
|Jul 2, 2018||6 380||4.4||109.3||454||1.6||45.6||739||0.4||12.7||0.46||0.3||18.1||6.8||185.7||3.6%|
|Jul 1, 2018||6 412||4.8||109.8||455||1.5||45.7||749||0.6||12.9||0.47||0.3||18.3||7.1||186.7||3.8%|
All figures given as of 03:00 UTC of the corresponding day
Data source: coinmarketcap.com
The 24-hour trading volumes (Volume 24h) for the eight dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, EOS, and Cardano) fell to $6.1 billion by the end of last week (Table 1.5.b), or 2.8% of their market capitalization. The ZAK-4 Crypto and ZAK-8 Crypto indices are considered in more detail in Tables 1.5.a and 1.5.b.
Table 1.5.b. Daily ZAK-8 Crypto index calculation (continuation of Table 1.5.а)
|Crypto||Stellar (XLM)||Cardano (ADA)||EOS (EOS)||Litecoin (LTC)||8 Crypto|
|Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Volume (24h)||Market cap||ZAK-8 crypto index|
|Date||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||USD billion||USD billion||%|
|Jul 8, 2018||0.21||0.04||3.9||0.150||0.05||3.9||9.0||0.49||8.1||86||0.24||4.9||6.1||220.5||2.8%|
|Jul 7, 2018||0.21||0.04||3.9||0.146||0.05||3.8||8.7||0.49||7.8||83||0.24||4.8||7.1||213.6||3.3%|
|Jul 6, 2018||0.20||0.04||3.8||0.149||0.07||3.9||8.9||0.60||8.0||84||0.25||4.8||7.5||213.6||3.5%|
|Jul 5, 2018||0.21||0.04||3.9||0.152||0.07||3.9||8.9||0.96||8.0||86||0.31||4.9||9.0||213.2||4.2%|
|Jul 4, 2018||0.21||0.03||3.9||0.150||0.09||3.9||8.9||0.94||7.9||85||0.28||4.9||7.8||211.5||3.7%|
|Jul 3, 2018||0.21||0.05||4.0||0.159||0.11||4.1||8.9||1.01||8.0||85||0.34||4.9||8.8||214.1||4.1%|
|Jul 2, 2018||0.20||0.05||3.8||0.143||0.16||3.7||8.1||1.02||7.3||80||0.30||4.6||8.3||205.0||4.1%|
|Jul 1, 2018||0.19||0.04||3.6||0.138||0.11||3.6||8.2||0.62||7.3||82||0.34||4.7||8.2||205.9||4.0%|
Table 1.6 gives a list of events, information on which appeared last week, which could impact both the prices of specific cryptocurrencies and the market in general.
Table 1.6. Events that could have an influence on cryptocurrency prices in the future
|Factors and events |
(link to source)
|Date of news||Description||Nature of impact||Type of impact|
|1.||SEC Seeks Comments on Another Bitcoin ETF [source: Bitcoinmagazine.com]||July 3, 2018||At least seven blockchain ETFs have been issued in this year alone, and now their number may grow rapidly.||Market ⇑||Favorable|
|2.||Blockchain Voting Notches Another Success—This Time in Switzerland [source: Fortune.com]||July 3, 2018||The small Swiss city of Zug confirms its status as a crypto valley. The local authorities have presented the results of the first blockchain voting, the participants in which made their choices using an electronic ID.||Market ⇑||Favorable|
|3.||EU Regulators Dispel Blockchain as the Ultimate One-and-All Financial Technology Solution [source: Bitrazzi.com]||July 4, 2018||According to officials, distributed ledger technology solves a whole range of problems. The only shortcoming of its use remains the lack of legal regulation, which makes the resolution of controversial issues more difficult, especially if the partner firms are registered in different jurisdictions.||Market ⇑||Favorable|
1.2 Market trends
The weekly cryptocurrency and digital asset market trends from December 31, 2017, to July 8, 2018, are presented as graphs (Fig. 1.1-1.5).
Table 1.7. Legends and descriptions of the graphs
|Total cryptocurrency market capitalization, USD million||Fig. 1.1||This figure shows cryptocurrency and digital asset market capitalization trends from December 31, 2017.|
|The rate of market change (as a % to the beginning of 2017)||Fig. 1.1||This figure shows the % change in cryptocurrency and digital asset market capitalization compared to December 31, 2017.|
|Change in the market capitalization (in USD million compared to previous period)||Fig. 1.2||This figure shows the weekly change in USD million (increase or decrease) in cryptocurrency and digital asset market capitalization from December 31, 2017.|
|The rate of market change (as a % compared to the previous period)||Fig. 1.2||This figure shows the % of weekly change (increase or decrease) in cryptocurrency and digital asset market capitalization from December 31, 2017.|
|Number of cryptocurrencies and digital assets||Fig. 1.3||This figure shows the trends in the increase of the number of cryptocurrencies and digital assets circulating on cryptocurrency exchanges. On January 1, 2017, their number was 617, and as of June 24, 2018, this number had already reached 1,565 (coins and tokens on which there is information on capitalization and/or turnover were considered).|
|Average market capitalization, USD million||Fig. 1.3||This figure reflects the growth in the average cryptocurrency and digital asset market capitalization from December 31, 2017, i.e. the ratio between the market capitalization of all cryptocurrencies and digital assets and their number.|
|Forecast of total cryptocurrency market capitalization||Fig. 1.4, 1.5||This figure shows the time trend (forecast) change in cryptocurrency and digital asset market capitalization.|
* NB! Average daily data are given in the graphs below. For this reason, the figures in the graphs may differ from the data in Table 1.1, where all figures were calculated at 03:00 UTC.
These differences in the values may be significant during periods of high cryptocurrency market volatility.
Data source: coinmarketcap.com
Figure 1.1. Total cryptocurrency market capitalization
Figure 1.1 shows a graph of the weekly cryptocurrency market change from December 31, 2017, to July 8, 2018. Over this period, market capitalization dropped from $572.5 billion to $277.9 billion, i.e. by 51%. Last week (July 1-8, 2018) cryptocurrency market capitalization increased from $256.2 billion to $277.9 billion (as of July 8, 2018, based on the average daily figures from coinmarketcap.com)
Figure 1.2. Change in market capitalization
The market is susceptible to sudden and drastic fluctuations. Nine of the thirteen weeks in the first quarter of 2018 were “in the red,” i.e. capitalization fell based on the results of each of these weeks, and the weekly fluctuations ranged from USD -136 billion to USD +250 billion.
Six of the thirteen weeks in the second quarter were “in the red.” The market grew based on the results of the other seven weeks. As noted earlier, a growth was seen in April, while in May and June there was generally a reduction in capitalization. The weekly fluctuations ranged from USD -72 billion to USD +62.2 billion.
The first week of the third quarter (July 1-8, 2018) saw an increase in cryptocurrency market capitalization by approximately 8%, or $21.7 billion (with due account of average daily data, see Fig. 1.2).
Figure 1.3. Number of cryptocurrencies and digital assets
Data source: coinmarketcap.com (coins and tokens on which there is information on capitalization and/or turnover were considered)
Since December 31, 2017, the total number of cryptocurrencies and digital assets considered when calculating market capitalization has increased from 1,335 to 1,565. Over the past week their number decreased from 1,567 to 1,565, but average capitalization increased to $177.6 million. In total, over the past month 48 new coins and tokens have appeared on coinmarketcap.com. However, it should be noted that a number of other coins and tokens were also excluded from the list. Among the tokens that were added to coinmarketcap.com last week, Project Pai, GoNetwork, Mainframe and Wowbit showed high trading volumes.
Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization
In late June and early July there were notable changes in legal regulation of cryptocurrencies, which by and large may have a positive impact on the crypto industry.
On July 5 the Korean portal reported that the South Korean government intends to announce a sectoral classification system for blockchain and cryptocurrencies this month, and is thereby essentially ready to recognize digital assets as industry institutions. The industry will be split into several categories. The Ministry of Science and ICT previously published a development strategy for blockchain technology in South Korea. The Korea Times also stated that the country is planning to loosen regulations of the cryptocurrency market in line with the recommendations of some member countries of the Group of 20 (G20).
Forbes reports that five countries have created a united operational alliance (the Joint Chiefs of Global Tax Enforcement, known as the J5) that will combat cryptocurrency tax and financial crimes. The alliance includes the tax enforcement authorities of the USA, Australia, Canada, Netherlands, and the United Kingdom.
According to bitcoin.com, a Japanese district court has become the first to sentence a person to a jail term in a case of remote mining of the Monero cryptocurrency.
Pursuant to the data of cointelegraph.com, Bermuda is updating its banking legislation and creating a new class of banks to service Fintech and blockchain companies. The Government of Bermuda revealed its plans to introduce amendments to the Law on Banking, since local banks have refused to provide banking services to new types of companies due to concerns over regulatory problems and potential risks.
Malta has adopted three new laws to regulate the cryptocurrency industry. On July 4 the Maltese parliament passed the Digital Innovation Authority Act, the Innovative Technological Arrangement and Services Act, and the Virtual Financial Asset Act in their third reading.
Annex – Glossary
|Market capitalization||Value of an asset calculated based on its current market (exchange) price. This economic indicator is used to assess the total aggregate value of market instruments, players, and markets. [Source: https://en.wikipedia.org].|
|Cryptocurrency market capitalization||The market value of an individual coin or token circulating on the market.|
|Total cryptocurrency market capitalization||The market capitalization of cryptocurrencies and digital assets, i.e. the aggregate market value of cryptocurrencies and digital assets (coins and tokens) circulating on the market.|
|Dominance||Market share, i.e. the ratio of market capitalization of a particular cryptocurrency (coin, token) to total cryptocurrency market capitalization. Expressed as a %.|
|Not Mineable||A coin that is not mineable. The term is used for cryptocurrencies (coins, tokens) which cannot be mined or issued through mining.|
|Pre-mined||A pre-mined coin. The term is used for cryptocurrencies (coins, tokens) which are issued through mining, and a certain number of coins (tokens) have been created and distributed among certain users at the start of the project.|
|The rate of market increase (as a % compared to the beginning of the year)||The rate of market increase (as a % compared to the start of the year), i.e. by how many % points did market capitalization increase compared to the start of the year.|
|The growth rate of the market (as a % to the beginning of the year)||The rate of market growth (as a % compared to the start of the year), i.e. by how many times did market capitalization grow compared to the start of the year.|
|Increase in market capitalization (in USD million compared to the previous period)||Increase in cryptocurrency and digital asset market capitalization (in USD million compared to the previous period), i.e. by how many USD million did market capitalization increase over the period.|
|The rate of market increase (as a % compared to the previous period)||The rate of market increase (as a % compared to the previous period), i.e. by how many % points did market capitalization increase over the period.|
|The market growth rate (as a % compared to the previous period)||The market growth rate (as a % compared to the previous period), i.e. by how many times did market capitalization grow compared to the previous period.|
|Number of cryptocurrencies and digital assets||Number of cryptocurrencies and digital assets. At the beginning of 2018 over 1,300 cryptocurrencies and digital assets (coins and tokens) were circulating on the market.|
|Average market capitalization||Average market capitalization, i.e. the ratio of the market capitalization of all cryptocurrencies and digital assets to their number.|
|ZAK-n Crypto index||The index is calculated as a percentage and represents a ratio between the trading volume (transactions) on cryptocurrency exchanges per day (Volume 24h) for n dominant cryptocurrencies to their total market capitalization. |
ZAK-4 Crypto index calculations include four dominant cryptocurrencies with the greatest market capitalization: Bitcoin, Ethereum, Bitcoin Cash, and Ripple.
ZAK-8 Crypto index calculations include the trading volume and market capitalization for eight cryptocurrencies.
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