Please see our report providing insights into cryptocurrency market movements during 2018, with special focus placed on the changes taking place in July 2018, most notably July 23-29, 2018.
Information as of July 30, 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 have taken place during July 2018, including over the past week (July 23-29, 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 May 1, 2018, to July 29, 2018*
|Parameter||1-May-18||1-June-18||MoM, %||1-July-18||MoM, %||8-July-18||DoD, %||15-July-18||DoD, %||22-July-18||DoD, %||29-July-18||DoD, %|
|1||Total market capitalization, USD billion||423.2||331.3||-21.7%||257.7||-22.2%||278.3||8.0%||249.5||-10.3%||281.6||12.9%||297.8||5.8%|
|2||Altcoin market capitalization, USD billion||265.8||203.2||-23.6%||147.9||-27.2%||160.8||8.7%||142.0||-11.7%||154.3||8.7%||156.8||1.6%|
|Altcoin dominance, %||62.8%||61.3%||–||57.4%||–||57.8%||–||56.9%||–||54.8%||–||52.7%||–|
|3||Bitcoin price, $||9 251.5||7 500.7||-18.9%||6 411.7||-14.5%||6 857.8||7.0%||6 272.7||-8.5%||7 417.8||18.3%||8 205.8||10.6%|
|Bitcoin market capitalization, USD billion||157.4||128.0||-18.6%||109.8||-14.2%||117.5||7.0%||107.6||-8.5%||127.3||18.3%||141.0||10.7%|
|Bitcoin dominance, %||37.2%||38.6%||–||42.6%||–||42.2%||–||43.1%||–||45.2%||–||47.3%||–|
|4||Ethereum price, $||670.5||578.7||-13.7%||455.2||-21.3%||492.1||8.1%||435.9||-11.4%||462.4||6.1%||466.9||1.0%|
|Ethereum market capitalization, USD billion||66.5||57.7||-13.1%||45.7||-20.8%||49.5||8.2%||43.9||-11.3%||46.6||6.2%||47.1||1.1%|
|Ethereum dominance, %||15.7%||17.4%||–||17.7%||–||17.8%||–||17.6%||–||16.6%||–||15.8%||–|
|5||Bitcoin Cash price, $||1 348.6||995.7||-26.2%||749.2||-24.8%||775.8||3.6%||703.0||-9.4%||788.5||12.2%||821.0||4.1%|
|Bitcoin Cash market capitalization, USD billion||23.1||17.1||-25.9%||12.9||-24.5%||13.4||3.6%||12.1||-9.3%||13.6||12.2%||14.2||4.2%|
|Bitcoin Cash dominance, %||5.5%||5.2%||–||5.0%||–||4.8%||–||4.9%||–||4.8%||–||4.8%||–|
|6||Litecoin price, $||148.3||118.0||-20.4%||81.5||-30.9%||86.3||5.8%||76.7||-11.1%||84.3||9.9%||84.1||-0.2%|
|Litecoin market capitalization, USD billion||8.4||6.7||-19.8%||4.7||-30.4%||4.9||6.0%||4.4||-10.9%||4.8||10.1%||4.8||-0.1%|
|Litecoin dominance, %||2.0%||2.0%||–||1.8%||–||1.8%||–||1.8%||–||1.7%||–||1.6%||–|
|7||Volume (24h) 4 crypto, USD billion||11.8||7.7||-35.0%||7.1||-7.1%||5.3||-25.8%||5.1||-3.3%||5.7||12.0%||6.5||13.5%|
|Market cap 4 crypto, USD billion||279.7||226.9||-18.9%||186.7||-17.7%||199.7||7.0%||180.8||-9.4%||205.4||13.6%||220.2||7.2%|
|ZAK-4 Crypto index**||4.2%||3.4%||–||3.8%||–||2.6%||–||2.8%||–||2.8%||–||2.9%||–|
|4 crypto dominance, %||66.1%||68.5%||–||72.4%||–||71.8%||–||72.5%||–||73.0%||–||74.0%||–|
|8||Volume (24h) 8 crypto, USD billion||16.0||9.2||-42.4%||8.2||-10.5%||6.1||-25.9%||5.9||-2.7%||6.7||12.8%||7.5||11.9%|
|Market cap 8 crypto, USD billion||319.5||255.9||-19.9%||205.9||-19.5%||220.5||7.1%||198.9||-9.8%||227.2||14.2%||242.7||6.9%|
|ZAK-8 Crypto index***||5.0%||3.6%||–||4.0%||–||2.8%||–||3.0%||–||3.0%||–||3.1%||–|
|8 crypto dominance, %||75.5%||77.2%||–||79.9%||–||79.2%||–||79.7%||–||80.7%||–||81.5%||–|
* Data as of July 29, 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 29, 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 22-29, 2018, is used, while the calendar week from July 23-29, 2018, is used for the news overview.
Cryptocurrency market capitalization increased over the analyzed period (July 22-29, 2018) and as of 03:00 UTC equaled $297.8 billion (see Table 1.1). The dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on July 29, 2018, equaled 74% and 81.5%, respectively, with bitcoin dominance rising to 47.3% (see Table 1.1).
The growth in cryptocurrency market capitalization compared to the start of the month equaled around $40 billion. This growth was mainly due to bitcoin, which appreciated by $31 billion, while altcoins appreciated by only $9 billion.
During the period from July 22-29, 2018, cryptocurrency market capitalization fluctuated from $279.7 billion (min) to $304.4 billion (max) (Fig. 1a), i.e. within a range of $25 billion. For its part, bitcoin capitalization fluctuated from $126.8 billion (min) to $144.5 billion (max), i.e. within a range of $18 billion.
It is worth noting the downward adjustment that took place during the night of July 26-27, when cryptocurrency capitalization fell by $14 billion over the course of 2.5 hours, and the bitcoin price depreciated from $8280 to $7880, i.e. by $400. Reciprocally, on the evening of July 27 an upward spike was seen, with capitalization and the bitcoin price recovering over the span of two hours. This leads to the question of what is causing these drastic changes? Many experts attribute it to the actions of the US Securities and Exchange Commission (SEC), specifically the official announcement of the SEC that the adoption of a decision on the five applications to issue bitcoin ETFs filed by the company Direxion had been postponed until September 21. In reality, however, the decision in question was already adopted on July 24. Another SEC decision (dated July 26, 2018) is connected with the creation of the Winklevoss Bitcoin Trust (Repeated failure of SEC in the creation of bitcoin-ETFs). You will recall that the SEC had previously rejected all applications on the issue of bitcoin ETFs. In response to the application of the Chicago Board Options Exchange (CBOE Global Markets), the SEC asked for comments.
Figure 1a. Cryptocurrency market capitalization since July 22, 2018
Figure 1b shows bitcoin capitalization (red line) superimposed on cryptocurrency market capitalization (blue line). The lines are practically identical, but more intensive growth in bitcoin can be seen compared to overall market capitalization. Ultimately, over the past week bitcoin dominance increased by 2.1%, from 45.2% to 47.3% (see Table 1.1).
Figure 1b. Capitalization of the cryptocurrency market (blue) and bitcoin (red) since July 22, 2018
The arrows mark the sharp increases in 24-hour trading volumes on the cryptocurrency market to $37-38 billion on July 24 and 28 (Fig. 1b).
The increase in trading volume on July 24 can be attributed mainly to bitcoin, and that on July 28 – to Ethereum. In particular, on July 28 a flurry of ETH/USDT transactions made the little known EXX exchange one of the leaders in trading volume.
The rise and fall of cryptocurrency prices over the past seven days (July 22-29, 2018)
Last week’s leaders from among the top 500 cryptocurrencies by capitalization, which showed an appreciation of more than 100%, were the projects Refereum (+222.5%), DMarket (+176.1%), and adToken (+129.8%). The growth of FuzeX (+84.9%), ZClassic (+77.6%), Scroll (+76.4%), BitMart Token (+57%), and Crypterium (+50%) should also be noted.
During the period from July 22-29, 2018, the change in the prices of cryptocurrencies in the top 500 ranged from -42.55% (Bitcoin Diamond) to +222.5% (Refereum). Last week (July 22-29, 2018) there was a downward adjustment in the price of Bitcoin Diamond (-42.55%), which was the growth leader (+72%) among coins and tokens from the top 100 by capitalization a week ago (July 15-22, 2018) after its listing on the major exchange HitBTC (Twitter). The Refereum price rose sharply after favorable news on this crypto’s simultaneous listing on two large exchanges, Bittrex and Upbit. At the beginning of the month this coin was trading at a price of 0.4 of a cent, but the price had increased to 0.8 of a cent by Thursday, and after the announcement of another listing the price of the coin settled in at 1.1 cent on Saturday (Twitter)
The price of 228 cryptocurrencies and digital assets from the top 500 showed growth, including 51 from the top 100.
Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion remained the same at 19, with the price of all of them increasing except Tezos (-6.48%), Dash (-5.81%), Cardano (-3.1%), NEO (-0.72%), XRP (-0.02%), and Tether (the price of which is tied to the US dollar). The growth in prices equaled: VeChain (+43.1%), Binance Coin (+17.6%), Bitcoin (+10.5%), etc.
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 22-29, 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) by 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 29, 2018||Market capitalization, USD billion||Factors or events that might have led to a growth in cryptocurrency prices over the past week|
|1||VeChain||VEN||43.12%||$2.62||1.45||The main network of VeChain was successfully launched and a swap for new project tokens was performed this month. This week the price of the coin rose after the announcement that trading with the new token would be supported by exchanges such as Binance (Twitter) and Lbank (Twitter). |
The Holo price also increased rapidly after news of its forthcoming listing on the major exchange Binance (Twitter), however the listing has still not taken place and the price gradually returned to its previous level over the course of the week.
The price of ChainLink grew after the revitalization of the crypto coin’s community due to the launch of the project’s new website on July 25 (Twitter)
The growth in the Bibox price can be attributed to the project’s plans to participate in the BlockAsia Meetup (Twitter), and the news on the cryptoexchange’s second quarter profits and its intention to use 25% of the net profit to buyout and burn 2,003,300 BIX tokens by August 10, 2018 (GMT + 8).
Binance Coin (BNB) is a digital token created by the Binance exchange to provide the best possible trading terms. Binance, in collaboration with Libra Credit, will offer loans to Binance Coin holders. Based on information from Business Korea, we also learned that a branch of the exchange will open in South Korea.
The remaining cryptocurrencies did not experience any sharp jumps in price, and their growth can be explained by market trends and volatility.
Bitcoin Gold (BTG) is the most decentralized of the bitcoin cryptocurrencies.
IOS Token is the digital token of a brand new network based on the IOS (Internet of Services) blockchain. According to its developers, IOS is the most secure and scalable network among the networks currently working.
The Aelf cryptocurrency is the digital token of a platform that is working to create a site capable of uniting decentralized applications in one place.
Pivx is a fork of the DASH cryptocurrency which uses only the best working features of DASH and Bitcoin.
A depreciation in price was seen last week for 272 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 29, 2018||Market capitalization, USD billion||Factors or events that might have led to a fall in cryptocurrency prices over the past week|
|1||Bitcoin Diamond||BCD||-42.55%||$2.04||0.31||Last week (July 22-29, 2018) there was a downward adjustment of the Bitcoin Diamond price (-42.55%), which was the growth leader (+72%) among coins and tokens from the top 100 by capitalization a week ago (July 15-22, 2018) after its listing on the large exchange HitBTC (Twitter). |
The remaining cryptocurrencies did not experience any sharp fluctuations in price, and their depreciation can be explained by market trends and volatility.
Populous (PPT) is a trading platform built on Ethereum blockchain that makes it possible to create invoices, something that no business can do without.
Power Ledger (POWR) is a platform where anyone who wishes can buy and sell electricity.
MOAC is the digital token of a project that is trying to create the best possible platform for developing decentralized applications using smart contracts.
GXS is a blockchain-based platform that makes it possible to securely and anonymously perform information exchange between network users.
Wanchain is the digital token of a decentralized platform whose main functions are to provide banking services such as currency exchange, lending, and transaction services.
Ardor is a blockchain-based ecosystem that offers convenient network scaling options and has a favorable structure for business.
Decred (DCR) is an altcoin created by part of the team of Bitcoin developers that unites the best characteristics of bitcoin and corrects the main mistakes made by “digital gold,” such as the scalability of blocks and others.
Nebulas, which is in 66th place in terms of capitalization, is the token of a platform used to search for information required by blockchain projects.
Waves has similar functionality with the second place cryptocurrency by capitalization, Ethereum.
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 23-29, 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 23-29, 2018
|№||Factors and events |
(link to source)
|Date of news||Description||Nature of impact||Type of impact|
|1.||Crypto Ads Are Running on Facebook, Instagram, Google and Yahoo! [source: dailyhodl.com]||July 23, 2018||The giant search engine Google has added bitcoin, Bitcoin Cash, Ethereum, and Litecoin to its currency converter. This is clearly positive news, which shows that cryptocurrencies continue to gain popularity among the general public.||Market ⇑||Favorable|
|2.||China’s Nanjing Launches $1.5 Billion Blockchain Fund [source: zdnet.com]||July 23, 2018||The authorities of the Chinese city of Nanjing have announced the launch of an investment fund with 10 billion yuan in capital (or around $1.5 billion), which will finance public blockchain projects and decisions on tokenization of assets.||Market ⇑||Favorable|
|3.||Bitcoin Climbs Above $8000, A Few Reasons Behind This Surge [source: Coinspeaker]||July 24, 2018||On Tuesday, July 24, the price of the first cryptocurrency passed the psychological threshold of $7,800, and then $8,000, thereby consolidating the gains that were achieved throughout the previous week.||Market ⇑||Favorable|
|4.||Bitcoin Futures Trading Volume Reaches $572M on Wall Street [source: cryptovest.com]||July 26, 2018||On July 25 the average daily trading volume of bitcoin futures on the Chicago commodities exchange (CME Group) equaled 12,878 contracts. This is an all-time record.||Market ⇑||Favorable|
|5.||Bitcoin Slips Below $8000 As SEC Rejects Bitcoin ETF Proposal From Winklevoss Twins [source: Coinspeaker]||July 27, 2018||For the second time, the US Securities and Exchange Commission (SEC) has rejected the proposal of the brothers Cameron and Tyler Winklevoss to create an exchange-traded fund tied to bitcoin.||Market ⇓||Unfavorable|
|6.||Ethereum Is Testing Code for Its Next Hard Fork [source: coindesk.com]||July 27, 2018||Constantinople will be the second stage of the Metropolis hard fork and is expected to improve the performance and lower transaction fees on the Ethereum network. It was also confirmed today that its activation will take place at the Devcon4 conference, which will take place from October 30 to November 2 in Prague.||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 $4.6 billion to $10.8 billion (Table 1.5.a). The value of the daily ZAK-4 Crypto ranged from 2.5% to 5.2% of capitalization. The highest trading volume was seen on July 24.
Table 1.5.a. Daily ZAK-4 Crypto index calculation (from July 1-29, 2018)
|Crypto||Bitcoin (BTC)||Ethereum (ETH)||Bitcoin Cash (BCH)||Ripple (XRP)||4 Crypto|
|Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Volume (24h) 4 crypto||Market cap 4 crypto||ZAK-4 Crypto index|
|Date*||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||USD billion||USD billion||%|
|Jul 29, 2018||8 206||4.1||141.0||467||1.6||47.1||821||0.6||14.2||0.46||0.2||18.0||6.5||220.2||2.9%|
|Jul 28, 2018||8 169||4.0||140.3||470||1.5||47.4||821||0.5||14.2||0.45||0.2||17.9||6.2||219.8||2.8%|
|Jul 27, 2018||7 950||5.2||136.5||464||1.7||46.8||804||0.6||13.9||0.45||0.2||17.7||7.7||214.9||3.6%|
|Jul 26, 2018||8 177||4.9||140.4||472||1.6||47.7||831||0.6||14.3||0.46||0.2||18.1||7.3||220.5||3.3%|
|Jul 25, 2018||8 380||5.8||143.9||480||1.9||48.4||863||0.7||14.9||0.46||0.3||17.9||8.7||225.1||3.9%|
|Jul 24, 2018||7 717||7.3||132.5||451||2.3||45.5||786||0.9||13.6||0.45||0.3||17.5||10.8||209.0||5.2%|
|Jul 23, 2018||7 415||5.1||127.3||459||1.6||46.3||790||0.6||13.6||0.45||0.2||17.7||7.5||204.9||3.7%|
|Jul 22, 2018||7 418||3.7||127.3||462||1.3||46.6||788||0.5||13.6||0.46||0.2||17.9||5.7||205.4||2.8%|
|Jul 21, 2018||7 353||3.7||126.2||451||1.5||45.4||768||0.5||13.2||0.45||0.2||17.5||5.9||202.4||2.9%|
|Jul 20, 2018||7 467||4.9||128.1||469||1.8||47.3||823||0.6||14.2||0.48||0.3||18.7||7.7||208.4||3.7%|
|Jul 19, 2018||7 378||5.1||126.6||481||2.1||48.4||828||0.7||14.3||0.49||0.3||19.1||8.2||208.5||3.9%|
|Jul 18, 2018||7 315||6.1||125.5||501||2.4||50.5||850||0.7||14.7||0.51||0.4||19.8||9.6||210.4||4.5%|
|Jul 17, 2018||6 740||6.0||115.6||480||2.3||48.4||803||0.8||13.8||0.48||0.3||18.9||9.4||196.7||4.8%|
|Jul 16, 2018||6 357||4.7||109.0||450||1.9||45.4||724||0.5||12.5||0.45||0.3||17.5||7.4||184.4||4.0%|
|Jul 15, 2018||6 273||3.3||107.6||436||1.4||43.9||703||0.3||12.1||0.44||0.2||17.2||5.1||180.8||2.8%|
|Jul 14, 2018||6 248||2.9||107.1||435||1.2||43.7||696||0.3||12.0||0.44||0.1||17.2||4.6||180.1||2.5%|
|Jul 13, 2018||6 235||3.8||106.9||431||1.5||43.4||687||0.4||11.8||0.44||0.2||17.1||5.8||179.2||3.3%|
|Jul 12, 2018||6 397||3.8||109.7||447||1.5||44.9||707||0.3||12.2||0.45||0.2||17.7||5.8||184.4||3.1%|
|Jul 11, 2018||6 331||3.6||108.5||435||1.4||43.7||689||0.3||11.9||0.45||0.2||17.5||5.6||181.6||3.1%|
|Jul 10, 2018||6 739||4.1||115.5||476||1.8||47.9||733||0.4||12.6||0.47||0.2||18.6||6.4||194.6||3.3%|
|Jul 9, 2018||6 775||3.7||116.1||489||1.5||49.2||752||0.3||12.9||0.48||0.2||18.7||5.8||197.0||2.9%|
|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
By the end of the week the 24-hour trading volumes (Volume 24h) for the eight dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, EOS, and Cardano) equaled $7.5 billion (Table 1.5.b), or 3.1% of their market capitalization. The ZAK-4 Crypto and ZAK-8 Crypto indices are considered in more detail in Tables 1.5.a and 1.5.b.
Table 1.5.b. Daily ZAK-8 Crypto index calculation (continuation of Table 1.5.а)
|Crypto||Stellar (XLM)||Cardano (ADA)||EOS (EOS)||Litecoin (LTC)||8 Crypto|
|Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Volume (24h)||Market cap||ZAK-8 Crypto index|
|Date||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||USD billion||USD billion||%|
|Jul 29, 2018||0.32||0.07||5.9||0.164||0.05||4.3||8.3||0.62||7.5||84||0.28||4.8||7.5||242.7||3.1%|
|Jul 28, 2018||0.32||0.07||6.0||0.166||0.05||4.3||8.4||0.53||7.6||85||0.28||4.9||7.1||242.5||2.9%|
|Jul 27, 2018||0.31||0.11||5.8||0.164||0.10||4.3||8.3||0.69||7.4||84||0.36||4.8||9.0||237.2||3.8%|
|Jul 26, 2018||0.33||0.17||6.2||0.172||0.08||4.5||8.5||0.64||7.6||86||0.29||5.0||8.5||243.8||3.5%|
|Jul 25, 2018||0.30||0.18||5.6||0.172||0.12||4.5||8.6||0.84||7.7||89||0.31||5.1||10.2||247.9||4.1%|
|Jul 24, 2018||0.28||0.11||5.3||0.165||0.19||4.3||8.0||1.01||7.1||83||0.44||4.8||12.5||230.6||5.4%|
|Jul 23, 2018||0.28||0.09||5.3||0.170||0.15||4.4||7.9||0.63||7.1||83||0.30||4.8||8.7||226.4||3.8%|
|Jul 22, 2018||0.29||0.10||5.5||0.164||0.14||4.2||8.0||0.50||7.2||84||0.25||4.8||6.7||227.2||3.0%|
|Jul 21, 2018||0.27||0.10||5.1||0.162||0.13||4.2||7.9||0.55||7.1||83||0.25||4.8||7.0||223.5||3.1%|
|Jul 20, 2018||0.30||0.13||5.7||0.180||0.22||4.7||8.4||0.81||7.5||87||0.29||5.0||9.1||231.2||3.9%|
|Jul 19, 2018||0.30||0.19||5.6||0.179||0.22||4.6||8.6||0.85||7.7||87||0.31||5.0||9.7||231.3||4.2%|
|Jul 18, 2018||0.25||0.24||4.8||0.170||0.32||4.4||8.8||0.93||7.9||90||0.38||5.2||11.4||232.6||4.9%|
|Jul 17, 2018||0.24||0.06||4.5||0.155||0.13||4.0||8.1||0.85||7.2||84||0.34||4.8||10.7||217.3||4.9%|
|Jul 16, 2018||0.22||0.05||4.1||0.142||0.09||3.7||7.4||0.72||6.6||79||0.31||4.5||8.6||203.4||4.2%|
|Jul 15, 2018||0.21||0.05||3.9||0.137||0.05||3.6||7.0||0.50||6.3||77||0.23||4.4||5.9||198.9||3.0%|
|Jul 14, 2018||0.20||0.04||3.8||0.138||0.06||3.6||7.0||0.40||6.2||77||0.20||4.4||5.3||198.2||2.7%|
|Jul 13, 2018||0.19||0.05||3.5||0.127||0.09||3.3||6.9||0.59||6.2||77||0.26||4.4||6.8||196.7||3.5%|
|Jul 12, 2018||0.19||0.04||3.6||0.132||0.04||3.4||7.2||0.60||6.4||79||0.27||4.5||6.7||202.4||3.3%|
|Jul 11, 2018||0.19||0.03||3.6||0.129||0.05||3.3||7.2||0.60||6.5||76||0.28||4.4||6.5||199.4||3.3%|
|Jul 10, 2018||0.21||0.04||3.9||0.140||0.06||3.6||7.8||0.71||6.9||81||0.32||4.6||7.6||213.7||3.5%|
|Jul 9, 2018||0.21||0.04||4.0||0.145||0.04||3.8||8.7||0.71||7.8||83||0.26||4.7||6.8||217.2||3.2%|
|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.||India to Have Comprehensive Crypto Regulations by September, Official Says [source: financemagnates.com]||July 24, 2018||By September the Indian Supreme Court will issue a set of draft laws regulating the cryptocurrency industry. The future norms will not include a direct ban on cryptocurrencies.||Market ⇑||Favorable|
|2.||Japan Self-Regulatory Crypto Exchange Association Considers Trading Cap for Some Clients [source: cointelegraph.com]||July 28, 2018||The Japan Virtual Currency Exchange Association (JVCEA) has developed a number of measures obligating cryptocurrency exchanges to establish a maximum limit on trading volumes for certain groups of traders.||Market ⇓||Unfavorable|
1.2 Market trends
The weekly cryptocurrency and digital asset market trends from December 31, 2017, to July 29, 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 July 29, 2018, this number had already reached 1,605 (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 29, 2018. Over this period, market capitalization dropped from $572.5 billion to $297.4 billion, i.e. by 48%. Last week (July 22-29, 2018) cryptocurrency market capitalization increased from $282 billion to $297.4 billion (as of July 29, 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.
Three of the past four weeks of the third quarter saw an increase in cryptocurrency market capitalization (with due account of average daily data of coinmarketcap.com, see Fig. 1.2).
Figure 1.3. Number of cryptocurrencies and digital assets
Since December 31, 2017, the total number of cryptocurrencies and digital assets considered when calculating market capitalization has increased from 1,335 to 1,605. Over the past week their number increased from 1,578 to 1,605, and average capitalization increased to $185.3 million. In total, over the past month 102 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, Linfinity, Consentium, Blue Whale Token, MTC Mesh Network, ThingsOperatingSystem, DACC, WABnetwork, and ZPER token showed high trading volumes.
Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization, USD billion
The last two weeks (July 15-29) have been positive for bitcoin. Its dominance has drawn near to 50% (47.83% on July 30, 2018, which is the highest mark in 2018). The price of the cryptocurrency market leader increased by nearly $2,000, from $6,300 to $8,200. Bitcoin might receive offline transaction support (proposal 174 (BIP174)), and the number of open Lightning Network channels in the bitcoin network is growing and already exceeds 10,000. According to the information of CCN dated July 25, the first EFP transaction in the cryptocurrency industry using bitcoin futures took place between two institutional investors (futures trading platform ED&F Man Capital Markets and the cryptocurrency exchange itBit). The EFP transaction was performed through the Chicago commodities exchange (CME Group).
According to Omkar Godbole, an analyst at CoinDesk, the first cryptocurrency has grown by up to 45% over the month and is likely preparing for a stage of “…long-term bullish reversal”).
Last week teemed with various events related to the crypto industry, most of which can be characterized as favorable.
Fortune magazine has presented the cryptocurrency version of the 40 under 40 rating, which includes well-known representatives of the crypto industry under the age of 40. The first three spots are held by Brian Armstrong, the CEO of the American exchange Coinbase, Vitalik Buterin, the founder of Ethereum, and Jihan Wu, co-founder of the largest Chinese crypto mining company Bitmain, which has already been appraised at $12 billion, and the value of which might increase to $15 billion by the end of July after the completion of the next round of financing (series C) with the attraction of another $1 billion.
Important events also took place for the second cryptocurrency by capitalization, Ethereum. The developers of Ethereum have already started testing the code of the Constantinople hard fork, the latest system-wide upgrade of the network. According to the announcements of the developers (Jordi Baylina, Jacques Dafflon, and Thomas Shababi) published in ETHNews, the ERC777 standard Ethereum tokens are in the final stages of development and will be presented in August.
There were notable movements among major institutional players and countries during the week.
As reported by CoinDesk, the G20 member countries are developing anti-money laundering standards on cryptocurrencies. The AML standards will be completed by October 2018.
According to information from Bloomberg, a closed meeting organized by Nasdaq, one of the largest stock exchanges, was held in Chicago last week between representatives of the traditional banking sector and several bitcoin exchanges.
India will prepare draft regulations on cryptocurrencies by September, and the proposed rules will not contain a direct ban on cryptocurrencies.
Nanjing, the capital of the Jiangsu Province in China, has launched a 10-billion-yuan ($1.48 billion) blockchain investment fund to facilitate the development of the digital economy and public blockchain projects. Also this week, the Galaxy Digital Ventures LLC cryptobank headed by billionaire Mike Novogratz invested $52.5 million in the American firm BlockFi. Previously, in June, Binance Labs announced its plans to introduce a $1 billion fund to support companies working in the area of blockchain and digital currencies.
South Korean telecom giant KT Corporation has created its own blockchain network. Pursuant to the report of CoinDesk Korea, KT Corporation announced that its KT Network Blockchain has a throughput capacity of 2,500 transactions per second (TPS) and plans to increase this capacity to 10,000 TPS by the end of the year and to 100,000 TPS by 2019.
The Trade.io cryptocurrency exchange has been unveiled, and the Gibraltar stock exchange has launched a cryptocurrency trading platform.
The above facts attest to the fact that the cryptocurrency market is developing rapidly.
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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