Coinspeaker joined ICOBox to provide our readers with this weekly report devoted to the analysis of cryptocurrency and digital assets markets over September 4-10, 2017, conducted by Professor Dima Kornilov and Dima Zaitsev.

Information as of September 10, 2017 (results over the period from July 1, 2017 to date)

This report was created by:

  • Professor Dima 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 at ICOBox
  • Mike Raitsyn, co-Founder at ICOBox

  1. General cryptocurrency and digital assets market analysis (by week, month). Main events.

1.1 General cryptocurrency and digital assets market analysis (by week, month).

Table 1.1. Trends in cryptocurrency market capitalization and main cryptocurrencies from July 1, 2017 to September 10, 2017

#

Name of Parameter1-Jul-171-Aug-17MoM, %1-Sep-17MoM, %3-Sep-1710-Sep-17*

WoW, %

1Total Market Capitalization, USD billion98.8189.54-9.38%171.6491.69%163.68138.91-15.13%
2Altcoin Market Capitalization, USD billion58.9745.23-23.30%95.11110.28%87.8472.16-17.85%
Altcoin Dominance, %59.68%50.51%-15.36%55.41%9.70%53.67%51.95%-3.20%
3Bitcoin Price, $2425.922689.4410.86%4627.2372.05%4585.274031.52-12.08%
Bitcoin Market Capitalization, USD billion39.8444.3111.22%76.5372.71%75.8466.75-11.99%
Bitcoin Dominance, %40.32%49.49%22.73%44.59%-9.90%46.33%48.05%3.71%
4Ethereum Price, $270.49200.97-25.70%355.6476.96%350.23278.46-20.49%
Ethereum Market Capitalization, USD billion25.1418.82-25.14%33.5778.37%33.0626.33-20.36%
Ethereum Dominance, %25.44%21.02%-17.39%19.56%-6.95%20.20%18.95%-6.16%
5Litecoin Price, $38.6140.895.91%79.9795.57%78.9860.36-23.58%
Litecoin Market Capitalization, USD billion2.012.135.97%4.2197.65%4.173.19-23.50%
Litecoin Dominance, %2.03%2.38%16.94%2.45%3.11%2.55%2.30%-9.86%
6Smith + Crown Indexn/an/an/an/an/a98049110-7.62%

*Data as of September 10, 2017 12:00 MSK

Data source: coinmarketcap.com, https://www.smithandcrown.com

In the week of September 3-10, 2017, the cryptocurrency market capitalization dropped by 15.13%. This is primarily due to the breaking news regarding the ICO ban in China which came out early in the week and significantly affected the pace of the capitalization growth which remained steadily high in August 2017 (the market grew by 91.69%). In the past week, the price of main cryptocurrencies drop by an average of 12.08% (Bitcoin), 20.49% (Ethereum) and 23.58% (Litecoin). Bitcoin rate twice dipped below $4,000. The second drop was caused by the reports of the potential Chinese ban of cryptocurrency exchanges. Smith + Crown Index which tracks the changes in 11 cryptocurrencies with the highest capitalizationе dropped by 7.62%, from 9,804 to 9,110.

1.2 Market Trends

Cryptocurrency and digital assets market trends from 1-Jul-17 to 10-Sep-17 are represented in below figures (Figures 1-5).

     Table 1.2. Figures legends and characteristics

Global FiguresFigure

Figure characteristics

Total cryptocurrency market capitalization, USD million

Fig. 1.1

The figure shows cryptocurrency and digital assets market capitalization trends from the start of 1-Jul-17  
The rate of market change (in % to the beginning of the year)

Fig. 1.1

The figure shows the % change in cryptocurrency and digital assets market capitalization compared to the start of 1-Jul-17  
Change in the market capitalization (in USD million compared to previous period)

Fig. 1.2

The figure shows USD million in weekly change (increase or decrease) in cryptocurrency and digital assets market capitalization starting from 1-Jul-17  
The rate of market change (in % compared to previous period)

Fig. 1.2

The figure shows % of weekly change (increase or decrease) in cryptocurrency and digital assets market capitalization starting from 1-Jul-17  
Number of cryptocurrencies and digital assets

Fig.1.3

The figure shows the trends in the increase of the number of Cryptocurrencies and digital assets circulating on cryptoexchanges. As of January 1, 2017 their number was 617, and currently (as of September 10, 2017) it reached 1 035.
Average market capitalization, USD millionFig. 1.3The figure reflects the growth in the average cryptocurrency and digital assets market capitalization from 1-Jul-17, i.e. the ration between the market capitalization of all cryptocurrencies and digital assets and their number
Forecast of total cryptocurrency market capitalizationFig. 1.4, 1.5The figure shows the time trends (forecast) in the cryptocurrency and digital assets market capitalization change

Data source: coinmarketcap.com

Figure 1.1. Total cryptocurrency market capitalization

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-1-1

Figure 1 shows weekly cryptocurrency market change from July 2, 2017 to September 10, 2017. Over this period the cryptocurrency market capitalization grew from $94,716 million to $141,441 million, consequently reaching 699% growth since the start of the year. At the same time, last week the total cryptocurrency market capitalization dropped from $166,644 million to $141,441 million.

Figure 1.2. Change in the market capitalization
weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-1-2

Despite the significant cryptocurrency market capitalization growth in Q3 2017 and for the year overall, the market is susceptible to wild fluctuations. Sharp drops were observed last week (September 03-10, 2017) when the market lost $25,203 million or 15.1% of its value, and the week of July 09-16, 2017 (-28%). The highest growth in Q3 occurred on July 16-23, 2017 and reached 39%.

Figure 1.3. Number of cryptocurrencies and digital assets

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-1-3

The total number of various cryptocurrencies and digital assets listed at exchanges in Q3 grew from 881 to 1,035. The average cryptocurrencies and digital assets capitalization went up from $107.5 million to 136.7 million. Last week’s news caused its decrease from $154.7 to $136.7 million.

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-1-4

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-1-5

Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

Despite the general upward cryptocurrency market capitalization trend for the whole year and, specifically, Q3, it will take some time (up to a month) for its gradual stabilization and reestablishment of the previous market growth rate, which slowed down due to the Chinese ICO ban and potential ban of cryptocurrency exchanges. The response of key market actors to the Chinese regulatory changes will become an important factor in the development of the cryptocurrency market in Q4 2017 and next year. The risk of the wild market fluctuations will remain high.

2. General analysis of the ICO market (per week, month).

2.1. Brief overview of the Cryptocurrency market and events (per week)

  • Metropolis Ahead: Ethereum Developers Set September Date for Testnet Launch [source: CoinDesk]
  • China’s ICO Ban: A Full Translation of Regulator Remarks [source: CoinDesk]
  • Hong Kong Regulator Warns ICO Tokens May Be Securities [source: CoinDesk]
  • Russia’s Central Bank Issues Warning on Cryptocurrencies and ICOs [source: CoinDesk]
  • Bitcoin Price Sinks Below $4,200 on China Uncertainty [source: CoinDesk]

2.2. Aggregated trends and performance indicators of the past (completed) ICOs

A new set of tools is proposed to assess the trends and performance of the successfully completed and/or listed ICOs:

Table 2.1. New tools to assess the trends and performance of the successfully completed and/or listed ICOs

Indicator

Characteristics

Average collected funds (ACF)Average amount of funds collected per ICO project over the period (a month, a quarter, a year);
Average token performance (ATP)Average performance of funds spent on buying tokens or average ratio between the current token price and token sale price over the period (a month, a quarter, a year), i.e. an average reward on $1 spent on buying tokens during the token sale, if they are traded on exchanges for USD.
Weighted average current reward on ICO funds (WACRF)Average weighted current performance of funds spent on buying tokens over the period (a month, a quarter, a year). This indicator is similar to the previous indicator “average token performance” (ATP) but is calculated taking into consideration the weight. As a weight the “average collected funds” parameter (ACF) is used.
Weighted average monthly reward on ICO funds (WAMRF)Average weighted monthly performance of funds spent on buying tokens over the period (a month, a quarter, a year). This indicator is similar to the previous indicator “weighted average current reward on funds” (WACRF) but is calculated based on recalculated average monthly performance.

Table 2.2. Aggregated trends and performance indicators of the past (completed) ICOs

IndicatorJanuaryAugust 2017JulyAugust 2017August 2017

September 3-10, 2017

Total amount of funds collected*$2,360.84 million$1,051.65 million$557.90 million$ 68,2 million***
Number of companies who completed an ICO*168100729
Max collected, USD million (ICO name)**347 (EOS)347 (EOS)252 (Filecoin)20 (Aventus)
Average collected funds, $$14.20 million$15.02 million$7.75 million$7.58 million
Max token reward (ICO name)666.36х (Spectrecoin)28.39х (Bitquence)6.39х (0х)n/a
Average token reward  (ATR)15.712.882.11n/a
Weighted average current reward on funds (WACRF)3.582.263.00n/a

*Data source: tokendata.io, only popular and/or successfully completed ICOs (i.e. ICOs which were able to collect the minimum set amount of funds and/or ICOs listed on exchanges. For some ICOs information may be incomplete (for instance, the amount of funds collected).

** Data source: eos.io, Eosscan.io

*** Not counting Filecoin ICO, which has been accounted in August.

2.3. Aggregated indicators to assess the market of active and planned ICOs

Table 2.3. Aggregated indicators to assess the market of active and planned ICOs

Indicator nameValue  
The number of projects conducting an active ICO as of the date (September 3, 2017)80
The number of projects planning an ICO as of the date (September 3, 2017)144
The number of projects planning an ICO between September 11, 2017 and September 17, 201736

Data source: tokendata.io, coinschedule.com and icoalert.com

2.4. Quantitative analysis of the ICO market

2.4.1 Amount of fund collected and the number of ICOs

Table 2.4. The amount of funds collected and the number of ICOs

MonthCollected, USD millionThe number of ICOs*Average, USD million
January4.531.50
February9.751.94
March4.731.57
April127.8177.52
May168.41610.53
June995.23033.17
July461.32915.91
August590.4738.09
last week September 3-10,  2017**68.297.58

*Data for funds collected is not available for all ICOs (August, last week)

** Not counting Filecoin ICO, which has been accounted in August.

Figure 2.1. The trends in the amount of funds collected and the number of ICOs conducted from the start of the year

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-2-1

2.4.2 Top 10 ICOs

Table 2.5. Top 10 ICOs in terms of the amount of funds collected (last week September 3-10, 2017)

#ICO NameCategoryCollected, USD million
1Filecoin*Data252.0
2AventusCommerce20.0
3ViberateMarketplaces12.0
4RevainContent9.7
5IndorseSocial networks9.0
6Hubii NetworkMarketplaces6.6
7BetKingGambling6.5
8CossFinance3.2
9Hash RushGaming1.0
10WWAMCore tech & Infrastructure0.2

* Filecoin ICO was accounted in August.

Figure 2.2. Top ICOs in terms of the amount of funds collected (last week September 3-10, 2017)*

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-2-2

* Not counting Filecoin ICO, which has been accounted in August.

2.4.3. Top ICOs in their categories

Table 2.6. Top 5 ICOs in terms of the amount of funds collected, Commerce category

ICO NameCategoryCollected, USD millionDate
AventusCommerce20.0September 2017
PrimalbaseCommerce7.9June 2017
OpusCommerce5.8August 21, 2017
MybitCommerce3.0August 16, 2017
IncentCommerce1.0September 2016

Figure 2.3. Top 5 ICOs in terms of the amount of funds collected, Commerce category

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-2-3

Table 2.7. Top 5 ICOs in terms of the amount of funds collected, Content category

ICO NameCategoryCollected, USD millionDate
PoetContent10August 17
RevainContent9.7September 17
DecentContent4.1November 2016
LunyrContent3.4April 2017
GolosContent0.5December 2016


Figure 2.4. Top 5 ICOs in terms of the amount of funds collected, Content category

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-2-4

Table 2.8. Top 5 ICOs in terms of the amount of funds collected, Marketplace category

ICO NameCategoryCollected, USD millionDate
MobileGoMarketplace53.0May 2017
ViberateMarketplace12.0September 17
DmarketMarketplace10.4August 17
BlocktixMarketplace7.0July 2017
InsurexMarketplace7.0July 2017

Figure 2.5. Top ICOs in terms of the amount of funds collected, Marketplace category

weekly-cryptocurrency-ico-market-analysis-september-4-10-2017-figure-2-5

Please see Annex 1 for a glossary.

Annex 1: Glossary

Key termsDefinitions
Initial coin offering, ICOA form of collective support of innovative technological projects, a type of crowdselling and attracting new backers through initial coin offerings to future holders in the form of blockchain-based cryptocurrencies (tokens) and digital assets.
Market capitalizationValue 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 capitalizationAggregate market value of cryptocurrencies circulating on the market.
Total cryptocurrency market capitalizationCryptocurrency and digital assets market capitalization, i.e. the aggregate market value of all cryptocurrencies and digital assets circulating on the market.
Token rewardToken performance (current token price / token price during the ICO), i.e. the reward per $1 spent on buying tokens.
DominanceMarket share, market capitalization of particular cryptocurrency (token) against to the total cryptocurrency market capitalization. Expressed as %.
Token sale price

Current token price

Token sale price during the ICO
Current token price
Not MineableA token is not mineable – the term is used for cryptocurrencies (tokens) which cannot be mined or issued through mining.
PreminedThe term is used for cryptocurrencies (tokens) which are issued through mining, and a certain number of which has been created and distributed among certain users at the start of the project.
The rate of market increase (in % to the beginning of the year)The rate of market increase (in % compared to the start of the year), i.e. by how many % did the market capitalization increased compared to the start of the year.
The growth rate of the market (in % to the beginning of the year)The market growth (in % compared to the start of the year), i.e. by how many times did the market capitalization grow compared to the start of the year.
Increase in market capitalization (in USD million compared to previous period)Cryptocurrency and digital assets market capitalization increase (in USD million compared to previous period), i.e. by how many USD million did the market capitalization increase over the period.
The rate of market increase (in % compared to previous period)Market increase rate (in % compared to previous period), i.e. by how many % did the market capitalization increase over the period.
The market growth rate (in % compared to previous period)Market growth rate (in % compared to the start of the year), i.e. by how many times did the market capitalization grow compared to previous period.
Number of cryptocurrencies and digital assetsNumber of cryptocurrencies and digital assets: at the time of the glossary compilation over 1,070 cryptocurrencies and digital assets were circulating on the market.
Average market capitalizationAverage market capitalization, i.e. ratio of all cryptocurrencies and digital assets market capitalization to their number.
Token rewardPerformance of funds spent on buying tokens or ratio of the current token price to the token sale price, i.e. efficiency of $1 spent on buying tokens during the token sale, if listed on an exchange for USD.
ETH reward – current dollar value of $1 spent on buying tokens during the token saleAlternative performance of funds spent on buying tokens during the ICO or the ratio of the current ETH rate to its rate at the start of the token sale, i.e. if instead of buying the tokens $1 was spent on buying ETH at its rate at the start of the token sale and sold at the current ETH rate.
BTC reward – current dollar value of $1 spent on buying tokens during the token saleSimilarly to the above: Alternative performance of funds spent on buying tokens, i.e. if instead of buying the tokens $1 was spent on buying BTC at its rate at the start of the token sale and sold at the current BTC rate.
Token/ETH rewardThis ratio describes the backer’s economic benefits and disadvantages resulting from buying tokens during the token sale relative to buying ETH. If the result is over 1, the backer achieved a more significant efficiency of his funds spent on buying tokens than if he were to spend his funds on ETH.
Token/BTC rewardThis ratio describes the backer’s economic benefits and disadvantages resulting from buying tokens during the token sale relative to buying BTC. If the result is over 1, the backer achieved a more significant efficiency of his funds spent on buying tokens than if he were to spend his funds on BTC.

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