Coinspeaker partnered with ICOBox to provide our readers with this quarterly analysis conducted by Professor Dima Kornilov and Dima Zaitsev devoted to cryptocurrency and digital assets markets.

Information as of October 1, 2017 (results for the period from July 1, 2017)

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;
  • Nick Evdokimov, Co-Founder of ICOBox;
  • Mike Raitsyn, Co-Founder of ICOBox;
  • Anar Babaev, Co-Founder of ICOBox;
  • Daria Generalova, Co-Founder of ICOBox;

This report presents the data on ICO cryptocurrency market changes that took place in Q3 of 2017, but the main focus is on the dynamics of the past week. Specifically, the authors studied the existing market assessment tools and developed several new tools.

1.General cryptocurrency and digital assets market analysis (by quarter, year). Market trends.

  1.1 General cryptocurrency and digital assets market analysis (by quarter, year).

                                                            Table 1.1. Trends in the capitalization of the cryptocurrency market and main cryptocurrencies from January 1, 2017 to October 1, 2017.

# Parameter 1-Jan-17 1-Apr-17 QoQ, % 1-Jul-17 QoQ, % 1-Oct-17 QoQ, %
1 Total market capitalization, USD billion 17.84 26.13 46.47% 96.00 267.39% 147.87 54.03%
2 Altcoin market capitalization, USD billion 2.20 8.50 286.36% 55.83 556.82% 75.91 35.97%
Altcoin dominance, % 12.33% 32.53% 163.79% 58.16% 78.78% 51.34% -11.73%
3 Bitcoin price, $ 972.85 1084.98 11.53% 2445.84 125.43% 4336.09 77.28%
Bitcoin market capitalization, USD billion 15.64 17.63 12.72% 40.17 127.85% 71.96 79.14%
Bitcoin dominance, % 87.67% 67.47% -23.04% 41.84% -37.98% 48.66% 16.30%
4 Ethereum price, $ 8.24 51.07 519.78% 282.88 453.91% 302.2 6.83%
Ethereum market capitalization, USD billion 0.72 4.61 540.28% 26.29 470.28% 28.67 9.05%
Ethereum dominance, % 4.04% 17.64% 337.14% 27.39% 55.22% 19.39% -29.20%
5 Litecoin price, $ 4.65 6.51 40.00% 38.55 492.17% 55.07 42.85%
Litecoin market capitalization, USD billion 0.22 0.32 45.45% 1.99 521.88% 2.93 47.24%
Litecoin dominance, % 1.23% 1.22% -0.69% 2.07% 69.27% 1.98% -4.41%
6 Smith + Crown Index n/a n/a n/a n/a n/a 9147 n/a
7 Volume (24h) 3 crypto, USD million 163 413 153.37% 1923 365.62% 1566 -18.56%
Market cap 3 crypto, USD million 16426 22743 38.46% 78253 244.08% 108240 38.32%
ZAK-3 Crypto index 0.99% 1.81% 82.83% 2.46% 35.91% 1.45% -41.19%
8 Volume (24h) 5 crypto, USD million n/a n/a n/a n/a n/a 1830 n/a
Market cap 5 crypto, USD million n/a n/a n/a n/a n/a 118380 n/a
ZAK-5 Crypto index n/a n/a n/a n/a n/a 1.55% n/a

* Data as of October 1, 2017 00:00 UTC (figures in lines 1-6)

** Data as of October 2, 2017 00:00 UTC (figures in lines 7-8)

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

The quarterly growth in total cryptocurrency market capitalization in the first three quarters of 2017 equaled 46.47%, 267.39% and 54.03%, respectively (see Table 1.1). The deceleration in growth in the third quarter was due to the restrictions (bans) on circulation of cryptocurrencies introduced in several countries, most notably in China.

The market capitalization of Altcoins (the alternative cryptocurrencies to Bitcoin) continues to increase steadily. Their share at the cryptocurrency exchange increased from 12.33% to 58.16% during the period from January 1, 2017 to July 1, 2017, but showed a downward trend to 51.34% in the third quarter based on data as of October 1, 2017.

The exchange rates of Ethereum (519.78% and 453.91%, respectively) and Litecoin (40.00% and 492.17%, respectively) demonstrated very vigorous growth in the first half of the year. Bitcoin exchange rate growth equaled 11.53% in the first quarter and 125.43% in the second quarter. Bitcoin showed the highest exchange rate appreciation in the third quarter (77.28%), while the growth of Ethereum and Litecoin was 6.83% and 42.85%, respectively. The growth in cryptocurrency market capitalization is nearly proportional to the growth in their exchange rates, but is also contingent upon the volumes of new coins mined.

All told, the prices for the analyzed cryptocurrencies increased during the third quarter of 2017 as follows: Bitcoin by nearly 450%, from $972.85 to $4,336.09; Ethereum by more than a factor of 35, from $8.24 to $302.20; and Litecoin by almost twelvefold, from $4.65 to $55.07.

The Smith + Crown Index for September fell from 10,597 to 9,147 due to market fluctuations caused by the closing of Chinese cryptocurrency exchanges. This index currently tracks the rate change trends for 11 cryptocurrencies (see Table 1.1).

To analyze trading activity on cryptocurrency exchanges, the authors propose a new index, the ZAK-n Crypto index (see the Glossary). The values of the ZAK-3 Crypto and ZAK-5 Crypto indices are presented in tables 1.1, 1.2, and 1.3. The 24-hour trading volumes (Volume 24h) for the three dominate cryptocurrencies (Bitcoin, Ethereum, Ripple) increased, reaching USD 163, 413, 1,923, and 1,566 million (tables 1.1, 1.2) as of the start of each quarter, respectively.

The 24-hour trading volumes (Volume 24h) for the five dominant cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash) at the start of the fourth quarter totaled USD 1,830 million (table 1.1). The ZAK-3 Crypto and ZAK-5 Crypto indices are considered in more detail in tables 1.2 and 1.3.

Table 1.2.a. Monthly ZAK-3 Crypto index calculation (from January 1, 2017 to October 1, 2017)

Crypto   Bitcoin (BTC) Ethereum (ETH) Ripple (XRP) 3 Crypto
  Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Volume (24h) 3 crypto Market cap 3 crypto ZAK-3 Crypto index
Date $ USD million USD million $ USD million USD million $ USD million USD million USD million USD million %
October 1, 2017 4341.1 1 208 72 047 301.6 306 28 615 0.1976 51 7 578 1 566 108 240 1.4%
September 1, 2017 4701.8 2 599 77 748 383.5 874 36 183 0.2558 284 9 808 3 757 123 740 3.04%
August 1,   2017 2871.3 1325 47322 204.7 1585 19179 0.1680 120 6441 3030 72942 4.15%
July 1,            2017 2492.6 780 40928 293.4 1089 27259 0.2629 54 10065 1923 78253 2.46%
June 1,         2017 2288.3 1653 37446 230.9 813 21265 0.2439 589 9331 3055 68042 4.49%
May 1,          2017 1348.3 714 21982 79.3 377 7234 0.0516 62 1954 1152 31170 3.70%
April 1,        2017 1071.7 290 17413 50.0 92 4518 0.0217 31 813 413 22743 1.81%
March 1,     2017 1180.0 229 19105 15.9 45 1416 0.0055 2 205 276 20726 1.33%
February 1,2017 970.9 150 15668 10.7 13 950 0.0063 2 233 165 16850 0.98%
January 1, 2017 963.7 148 15491 8.0 15 698 0.0065 0 237 163 16426 0.99%

* Data as of October 1, 2017 00:00 UTC

Data source: coinmarketcap.com

Table 1.2 shows the monthly change in prices, trading volume (Volume 24h), and market capitalization for the three dominant cryptocurrencies. The sustained growth in market liquidity should be noted, with the ZAK-3 Crypto index increasing from 0.99% as of January 1, 2017, to 1.4% as of October 1, 2017.

In tables 1.2.a and 1.2.b, the red font indicates the dates on which the ZAK-3 Crypto index went beyond 3.5%. Significant changes in cryptocurrency exchange rates (prices) were also seen on these days. For example, on September 18, 2017, the 24-hour trading volume (Volume 24h) for the three dominant cryptocurrencies equaled USD 3,159 million, i.e. 3.5% of their market capitalization. In this regard, the Price Open for Bitcoin (BTC) increased over the course of the day from $3,591.10 to $4,073.80; for Ethereum (ETH) from $252.20 to $293.70; and for Ripple (XRP) from $0.1783 to $0.1898 (table 1.2.b).

Last week (September 25-October 1, 2017) the adjusted ZAK-3 Crypto and ZAK-5 Crypto index values did not exceed 3% of the capitalization of the analyzed cryptocurrencies (tables 1.2.b, 1.3.b).

Table 1.2.b. Daily ZAK-3 Crypto index calculation (from September 1, 2017 to October 1, 2017)

Crypto   Bitcoin (BTC) Ethereum (ETH) Ripple (XRP) 3 Crypto
  Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Volume (24h) 3 crypto Market cap 3 crypto ZAK-3 Crypto index
Date $ USD million USD million $ USD million USD million $ USD million USD million USD million USD million %
October 1, 2017 4341.1 1 208 72 047 301.6 306 28 615 0.1976 51 7 578 1 566 108 240 1.4%
September 30, 2017 4166.1 1 207 69 137 291.5 332 27 655 0.1938 55 7 432 1 595 104 224 1.5%
September 29, 2017 4171.6 1 367 69 219 299.1 541 28 376 0.1961 72 7 519 1 981 105 115 1.9%
September 28, 2017 4197.1 1 712 69 633 306.5 502 29 069 0.2025 118 7 766 2 332 106 468 2.2%
September 27, 2017 3892.9 1 687 64 579 287.0 550 27 219 0.1853 250 7 105 2 487 98 904 2.5%
September 26, 2017 3928.4 1 044 65 161 292.4 346 27 720 0.1820 70 6 977 1 460 99 858 1.5%
September 25, 2017 3681.6 1 374 61 061 282.2 483 26 756 0.1755 36 6 730 1 893 94 547 2.0%
September 24, 2017 3796.2 768 62 954 286.2 571 27 130 0.1782 21 6 832 1 360 96 916 1.4%
September 23, 2017 3629.9 928 60 190 264.6 451 25 077 0.1734 32 6 648 1 412 91 915 1.5%
September 22, 2017 3628.0 1 195 60 152 258.1 430 24 458 0.1716 37 6 579 1 662 91 189 1.8%
September 21, 2017 3901.5 1 411 64 678 283.3 601 26 836 0.1810 44 6 940 2 056 98 453 2.1%
September 20, 2017 3916.4 1 214 64 919 282.0 421 26 712 0.1837 35 7 044 1 670 98 675 1.7%
September 19, 2017 4073.8 1 564 67 520 293.7 647 27 809 0.1898 54 7 278 2 265 102 608 2.2%
September 18, 2017 3591.1 1 943 59 514 252.2 1 128 23 881 0.1783 88 6 837 3 159 90 232 3.5%
September 17, 2017 3606.3 1 239 59 758 245.9 427 23 273 0.1784 49 6 840 1 716 89 870 1.9%
September 16, 2017 3637.8 1 818 60 272 250.9 712 23 743 0.1819 84 6 976 2 615 90 990 2.9%
September 15, 2017 3166.3 4 148 52 454 215.2 1 936 20 365 0.1650 289 6 328 6 373 79 146 8.1%
September 14, 2017 3875.4 2 716 64 192 276.6 1 185 26 166 0.2004 153 7 685 4 053 98 043 4.1%
September 13, 2017 4132.0 2 219 68 432 291.1 922 27 536 0.2096 105 8 038 3 247 104 006 3.1%
September 12, 2017 4168.9 1 865 69 033 294.6 753 27 862 0.2149 95 8 239 2 712 105 134 2.6%
September 11, 2017 4122.5 1 557 68 256 289.8 571 27 394 0.2125 138 8 149 2 267 103 799 2.18%
September 10, 2017 4229.3 1 679 70 018 294.1 698 27 797 0.2096 117 8 037 2 495 105 852 2.36%
September 9, 2017 4229.8 1 386 70 017 296.2 529 27 991 0.2113 51 8 102 1 966 106 110 1.9%
September 8, 2017 4605.2 2 701 76 220 329.6 1 099 31 147 0.2236 151 8 574 3 951 115 942 3.4%
September 7, 2017 4589.1 1 845 75 945 333.5 719 31 508 0.2264 103 8 680 2 666 116 133 2.3%
September 6, 2017 4376.6 2 172 72 419 313.8 1 059 29 639 0.2150 163 8 242 3 394 110 300 3.1%
September 5, 2017 4228.3 2 698 69 954 297.6 1 551 28 100 0.2051 243 7 865 4 492 105 919 4.2%
September 4, 2017 4591.6 2 987 75 956 347.1 1 802 32 774 0.2288 240 8 772 5 029 117 502 4.3%
September 3, 2017 4585.3 1 933 75 842 350.2 986 33 060 0.2272 187 8 713 3 106 117 614 2.6%
September 2, 2017 4901.4 2 722 81 061 387.8 1 484 36 601 0.2493 330 9 561 4 536 127 223 3.6%
September 1, 2017 4701.8 2 599 77 748 383.5 874 36 183 0.2558 284 9 808 3 757 123 740 3.0%

* Data as of October 1, 2017 00:00 UTC

Data source: coinmarketcap.com

In table 1.3.b, the red font indicates the dates when the ZAK-5 Crypto index exceeded 4%. The data for five cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin and Bitcoin Cash) were used to calculate this index. The days with the highest cryptocurrency exchange rate fluctuations and 24-hour trading volume (Volume 24h) in tables 1.2.b and 1.3.b are virtually identical. The ZAK-5 Crypto index in table 1.3.a was calculated from September 1, 2017, since the Bitcoin Cash cryptocurrency only entered the exchange on August 1, 2017, after the Bitcoin hard fork.

Table 1.3.a. Monthly ZAK-5 Crypto index calculation (continuation of table 1.2.a)

Crypto Litecoin (LTC) Bitcoin Cash (BCH) 5 Crypto
  Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Volume (24h)

5 crypto

Market cap

5 crypto

ZAK-5 Crypto index
Date $ USD million USD million $ USD million USD million USD million USD million %
October 1, 2017 55.14 100 2 932 433.38 164 7 208 1 830 118 380 1.5%
September 1, 2017 70.86 1 552 3 736 588.4 394 9 740 5 702 137 216 4.2%
August 1, 2017 43.02 204 2 248 294.6 66 n/a
July 1, 2017 40.4 226 2 092 0
June 1, 2017 25.34 420 1 302 0
May 1, 2017 15.71 67 799 0
April 1, 2017 6.65 58 336 0
March 1, 2017 3.77 4 189 0
February 1, 2017 4.08 8 202 0
January 1, 2017 4.33 11 213 0


Table 1.3.b. Daily ZAK-5 Crypto index calculation (continuation of table 1.2.b)

Crypto Litecoin (LTC) Bitcoin Cash (BCH) 5 Crypto
  Price Open Volume (24h) Market cap Price Open Volume (24h) Market cap Volume (24h)

5 crypto

Market cap

5 crypto

ZAK-5 Crypto index
Date $ USD million USD million $ USD million USD million USD million USD million %
October 1, 2017 55.14           100         2 932   433.38          164            7 208          1 830     118 380   1.5%
September 30, 2017 52.63           131         2 797   436.64          151            7 259          1 877     114 280   1.6%
September 29, 2017 54.11           187         2 875   447.66          149            7 442          2 316     115 432   2.0%
September 28, 2017 56.21           202         2 986   456.71          300            7 592          2 835     117 046   2.4%
September 27, 2017 51.58           220         2 739   441.86          198            7 343          2 905     108 986   2.7%
September 26, 2017 51.69           174         2 745   445.36          165            7 400          1 799     110 003   1.6%
September 25, 2017 47.62           209         2 528   419.65          302            6 971          2 404     104 046   2.3%
September 24, 2017 49.25             82         2 614   428.8          115            7 122          1 557     106 652   1.5%
September 23, 2017 48.16           142         2 555   415.31          189            6 896          1 743     101 366   1.7%
September 22, 2017 46.65           218         2 474   417.92          242            6 937          2 122     100 601   2.1%
September 21, 2017 51.66           229         2 739   475.83          317            7 898          2 602     109 091   2.4%
September 20, 2017 52.74           160         2 796   526.74          669            8 742          2 499     110 213   2.3%
September 19, 2017 55.68           287         2 951   480.64          802            7 975          3 354     113 534   3.0%
September 18, 2017 48.53           409         2 571   422.09          459            7 002          4 027        99 805   4.0%
September 17, 2016 48.23           245         2 554   438.9          222            7 280          2 183        99 704   2.2%
September 16, 2017 48.13           562         2 549   424.49          314            7 040          3 490     100 578   3.5%
September 15, 2017 41.69       1 554         2 207   369.49          707            6 127          8 635        87 480   9.9%
September 14, 2017 61.64           750         3 262   504.22          257            8 360          5 061     109 664   4.6%
September 13, 2017 64.32           502         3 403   509.47          340            8 446          4 088     115 854   3.5%
September 12, 2017 66.24           481         3 503   539.03          274            8 934          3 467     117 571   2.9%
September 11, 2017 61.65           412         3 260   537.19          275            8 903          2 954     115 961   2.5%
September 10, 2017 65.8           530         3 478   546.48          290            9 055          3 314     118 386   2.8%
September 9, 2017 67.21           468         3 552   584.73          235            9 688          2 669     119 350   2.2%
September 8, 2017 78.45           931         4 145   654.37          810          10 841          5 691     130 927   4.3%
September 7, 2017 79.88           527         4 219   636.85      1 082          10 549          4 276     130 900   3.3%
September 6, 2017 71.78           831         3 790   541.28          693            8 965          4 918     123 054   4.0%
September 5, 2017 65.25       1 016         3 444   514.9          339            8 527          5 847     117 890   5.0%
September 4, 2017 76.73           922         4 049   608.26          329          10 072          6 280     131 623   4.8%
September 3, 2017 78.98           675         4 167   578.27          345            9 575          4 126     131 355   3.1%
September 2, 2017 85.83       1 364         4 527   621.96          350          10 297          6 250     142 046   4.4%
September 1, 2017 70.86       1 552         3 736   588.4          394            9 740          5 702     137 216   4.2%

 

The high trading volume (Volume 24h) relative to market capitalization contributes to increased volatility and wild price changes on the cryptocurrency market.

Tables 1.4.a and 1.4.b show the monthly Bitcoin and Ethereum exchange rates (Open, High, Low, Close) since January 1, 2017.

The largest appreciation in the Bitcoin exchange rate during the year to date took place in May (+69.4%) and in August (+80%); the largest depreciation took place in March (-11.6%) and September (-10%). Overall, the exchange rate increased by a factor of 4.41 over the first three quarters (see table 1.4.a).

Table 1.4.a. Monthly change in exchange rates, trading volume (Volume 24h) and Bitcoin (BTC) capitalization, USD (from January 1, 2017 to October 1, 2017)

Date Open High Low Range Close MoM, % D Month to start of year Volume (24h) Market cap
October 1, 2017 4341.05 4403.74 4269.81 133.93 4403.74 90.0% -10.0 4.41 1 208 72 047
September 1, 2017 4701.76 4892.01 4678.53 213.48 4892.01 180.0% 80.0 4.90 2 599 77 748
August 1, 2017 2871.30 2921.35 2685.61 235.74 2718.26 111.7% 11.7 2.72 1 325 47 322
July 1, 2017 2492.60 2515.27 2419.23 96.04 2434.55 101.1% 1.1 2.44 780 40 928
June 1, 2017 2288.33 2448.39 2288.33 160.06 2407.88 169.4% 69.4 2.41 1 653 37 446
May 1, 2017 1348.30 1434.32 1348.30 86.02 1421.60 131.6% 31.6 1.42 714 21 982
April 1, 2017 1071.71 1091.72 1061.09 30.63 1080.50 88.4% -11.6 1.08 290 17 413
March 1, 2017 1180.04 1222.50 1179.69 42.81 1222.50 123.6% 23.6 1.22 229 19 105
February 1, 2017 970.94 989.11 970.74 18.37 989.02 99.1% -0.9 0.99 150 15 668
January 1, 2017 963.66 1003.08 958.70 44.38 998.33 1.00 148 15 491

* Data as of October 1, 2017 00:00 UTC

Data source: coinmarketcap.com

Significant appreciation of the Ethereum exchange rate took place in March (+192.2%), May (+191.3%), and August (+71.1%); depreciation in the exchange rate was seen in July (-17.4%) and September (-22%). Overall, the exchange rate increased by a factor of 37 over the first three quarters (see table 1.4.b).

Table 1.4.b. Monthly change in exchange rates, trading volume (Volume 24h) and Ethereum (ETH) capitalization, USD (from January 1, 2017 to October 1, 2017)

Date Open High Low Range Close MoM, % D Month to start of year Volume (24h) Market cap
October 1, 2017 301.55 303.19 295.06 8.13 302.34 78.0% -22.0 37.01 306 28 615
September 1, 2017 383.47 390.04 383.47 6.57 387.74 171.0% 71.0 47.46 874 36 183
August 1, 2017 204.69 227.74 204.69 23.05 226.77 82.6% -17.4 27.76 1 585 19 179
July 1, 2017 293.35 293.75 268.62 25.13 274.60 123.6% 23.6 33.61 1 089 27 259
June 1, 2017 230.89 236.22 214.48 21.74 222.24 291.3% 191.3 27.20 813 21 265
May 1, 2017 79.32 82.52 73.09 9.43 76.30 150.5% 50.5 9.34 377 7 234
April 1, 2017 50.03 51.93 48.88 3.05 50.70 292.2% 192.2 6.21 92 4 518
March 1, 2017 15.85 17.37 15.56 1.81 17.35 161.7% 61.7 2.12 45 1 416
February 1, 2017 10.74 10.85 10.56 0.29 10.73 131.3% 31.3 1.31 13 950
January 1, 2017 7.98 8.47 7.98 0.49 8.17 1.00 15 698

* Data as of October 1, 2017 00:00 UTC

Data source: coinmarketcap.com

Therefore, the Bitcoin exchange rate depreciated in March (-11.6%) amid a significant appreciation of the Ethereum exchange rate (+192.2%), which points to a redistribution of the funds of market participants between alternative cryptocurrencies in favor of Ethereum. A lull was seen on the cryptocurrency market in July, while in August there was another dramatic upturn in exchange rates (tables 1.4.a, 1.4.b).

Table 1.4.c. Daily change in exchange rates, trading volume (Volume 24h) and Bitcoin (BTC) capitalization, USD (from September 1, 2017 to October 1, 2017)

Date Open High Low Range Close DoD, % Volume (24h) Market cap
October 1, 2017 4341.05 4403.74 4269.81 133.93 4403.74 101.5%                       1 208                    72 047
September 30, 2017 4166.11 4358.43 4160.86 197.57 4338.71 104.2%                       1 207                    69 137
September 29, 2017 4171.62 4214.63 4039.29 175.34 4163.07 99.7%                       1 367                    69 219
September 28, 2017 4197.13 4279.31 4109.70 169.61 4174.73 99.4%                       1 712                    69 633
September 27, 2017 3892.94 4210.05 3884.82 325.23 4200.67 107.9%                       1 687                    64 579
September 26, 2017 3928.41 3969.89 3869.90 99.99 3892.35 99.1%                       1 044                    65 161
September 25, 2017 3681.58 3950.25 3681.58 268.67 3926.07 106.6%                       1 374                    61 061
September 24, 2017 3796.15 3796.15 3666.90 129.25 3682.84 104.6%                           768                    62 954
September 23, 2017 3629.92 3819.21 3594.58 224.63 3792.40 100.1%                           928                    60 190
September 22, 2017 3628.02 3758.27 3553.53 204.74 3630.70 93.0%                       1 195                    60 152
September 21, 2017 3901.47 3916.42 3613.63 302.79 3631.04 99.6%                       1 411                    64 678
September 20, 2017 3916.36 4031.39 3857.73 173.66 3905.95 96.1%                       1 214                    64 919
September 19, 2017 4073.79 4094.07 3868.87 225.20 3924.97 113.4%                       1 564                    67 520
September 18, 2017 3591.09 4079.23 3591.09 488.14 4065.20 99.6%                       1 943                      59 514  
September 17, 2017 3606.28 3664.81 3445.64 219.17 3582.88 99.1%                       1 239                    59 758
September 16, 2017 3637.75 3808.84 3487.79 321.05 3625.04 114.9%                       1 818                    60 272
September 15, 2017 3166.30 3733.45 2946.62 786.83 3637.52 81.7%                       4 148                      52 454  
September 14, 2017 3875.37 3920.60 3153.86 766.74 3154.95 93.8%                       2 716                      64 192  
September 13, 2017 4131.98 4131.98 3789.92 342.06 3882.59 99.1%                       2 219                    68 432
September 12, 2017 4168.88 4344.65 4085.22 259.43 4130.81 101.1%                       1 865                    69 033
September 11, 2017 4122.47 4261.67 4099.40 162.27 4161.27 97.5%                       1 557                    68 256
September 10, 2017 4229.34 4245.44 3951.04 294.40 4122.94 100.0%                       1 679                    70 018
September 9, 2017 4229.81 4308.82 4114.11 194.71 4226.06 91.8%                       1 386                    70 017
September 8, 2017 4605.16 4661.00 4075.18 585.82 4228.75 100.3%                       2 701                    76 220
September 7, 2017 4589.14 4655.04 4491.33 163.71 4599.88 104.9%                       1 845                    75 945
September 6, 2017 4376.59 4617.25 4376.59 240.66 4597.12 103.5%                       2 172                    72 419
September 5, 2017 4228.29 4427.84 3998.11 429.73 4376.53 92.1%                       2 698                    69 954
September 4, 2017 4591.63 4591.63 4108.40 483.23 4236.31 100.1%                       2 987                    75 956
September 3, 2017 4585.27 4714.08 4417.59 296.49 4582.96 93.5%                       1 933                    75 842
September 2, 2017 4901.42 4975.04 4469.24 505.80 4578.77 104.2%                       2 722                    81 061
September 1, 2017 4701.76 4892.01 4678.53 213.48 4892.01 103.2%                       2 599                    77 748

* Data as of October 1, 2017 00:00 UTC

Data source: coinmarketcap.com

In September, the restrictions put in place by the Chinese government began to impact the market. In particular, Bitcoin rate fluctuations from the start of the month ranged from $4,975.04 (on September 2, 2017) to $2,946.62 (on September 15, 2017), i.e. over $2,000, and Ethereum rate fluctuations ranged from $390 (on September 1, 2017) to $195 (on September 15, 2017), i.e. a difference of $195. You can see the synchronicity of exchange rate appreciation and depreciation of these two currencies in September (see tables 1.4.c, 1.4.d).

Table 1.4.d. Daily change in exchange rates, trading volume (Volume 24h) and Ethereum (ETH) capitalization, USD (from September 1, 2017 to October 1, 2017)

Date Open High Low Range Close DoD, % Volume (24h) Market cap
October 1, 2017 301.55 303.19 295.06 8.13 302.34 100.3%                       306                      28 615
September 30, 2017 291.48 303.96 291.11 12.85 301.46 103.4%                       332                      27 655
September 29, 2017 299.12 299.92 279.77 20.15 291.47 97.4%                       541                      28 376
September 28, 2017 306.47 307.20 295.47 11.73 299.15 97.6%                       502                      29 069
September 27, 2017 287.02 308.01 286.82 21.19 306.47 106.6%                       550                      27 219
September 26, 2017 292.35 293.75 287.02 6.73 287.44 98.3%                       346                      27 720
September 25, 2017 282.22 293.51 281.88 11.63 292.33 103.5%                       483                      26 756
September 24, 2017 286.21 292.95 278.13 14.82 282.48 98.7%                       571                      27 130
September 23, 2017 264.60 286.17 261.12 25.05 286.17 108.3%                       451                      25 077
September 22, 2017 258.11 270.54 256.22 14.32 264.31 102.2%                       430                      24 458
September 21, 2017 283.26 286.61 255.02 31.59 258.58 91.1%                       601                      26 836
September 20, 2017 282.01 290.89 278.05 12.84 283.74 100.3%                       421                      26 712
September 19, 2017 293.66 295.77 274.48 21.29 282.80 96.4%                       647                      27 809
September 18, 2017 252.23 293.50 252.23 41.27 293.50 116.6%                    1 128                      23 881
September 17, 2017 245.85 257.00 235.24 21.76 251.75 102.1%                       427                      23 273
September 16, 2017 250.87 262.59 238.22 24.37 246.52 98.4%                       712                      23 743
September 15, 2017 215.22 258.65 195.03 63.62 250.46 117.1%                    1 936                      20 365
September 14, 2017 276.59 280.84 213.91 66.93 213.91 77.2%                    1 185                      26 166
September 13, 2017 291.12 291.12 260.61 30.51 277.11 95.1%                       922                      27 536
September 12, 2017 294.63 311.19 287.23 23.96 291.46 99.0%                       753                      27 862
September 11, 2017 289.75 300.69 286.69 14.00 294.53 102.0%                       571                      27 394
September 10, 2017 294.06 294.76 268.97 25.79 288.75 98.1%                       698                      27 797
September 9, 2017 296.17 299.89 287.22 12.67 294.40 99.3%                       529                      27 991
September 8, 2017 329.64 329.64 285.16 44.48 296.50 90.0%                    1 099                      31 147
September 7, 2017 333.52 333.52 319.94 13.58 329.43 98.5%                       719                      31 508
September 6, 2017 313.80 334.66 313.49 21.17 334.34 106.8%                    1 059                      29 639
September 5, 2017 297.57 318.57 268.29 50.28 312.99 106.0%                    1 551                      28 100
September 4, 2017 347.13 347.13 279.94 67.19 295.17 84.9%                    1 802                      32 774
September 3, 2017 350.23 366.49 332.23 34.26 347.48 99.6%                       986                      33 060
September 2, 2017 387.82 389.35 328.10 61.25 348.98 90.0%                    1 484                      36 601
September 1, 2017 383.47 390.04 383.47 6.57 387.74 101.2%                       874                      36 183

* Data as of October 1, 2017 00:00 UTC

Data source: coinmarketcap.com

A large-scale Bitcoin hard fork is planned for November 2017, and will result in the appearance of two new “associated” cryptocurrencies — Bitcoin Core and Bitcoin Ultimate. Naturally, this situation raises questions concerning how this will affect the value of the cryptocurrencies.

Having analyzed the change in the Bitcoin exchange rate on the cryptocurrency market following the previous hard fork on August 1, 2017, which led to the appearance of the alternative cryptocurrency Bitcoin Cash, we can note the following.

During the first two days after the split, the price of the new Bitcoin Cash cryptocurrency increased rapidly from approximately $210 to $750, but by the fifth or sixth day it had already retreated to $210-230. It then began to grow steadily. Right now, the Bitcoin Cash rate is around $420, with total capitalization of USD 7,200 million. The Bitcoin rate fell by approximately 3-4% during the week leading up to the currency split, but by August 1, 2017, it had returned to its previous level, and began to increase after August 3, 2017. This same trend was seen throughout the cryptocurrency market.

The maximum fluctuation in the Bitcoin rate in June was $786.95, from $2,212.96 to $2,999.91; in July – $1,073.11, from $1,843.03 to $2,916.14; and after the split in August – $2,067.46, from $2,668.59 to $4,736.05. Overall, the Bitcoin rate increased by 206% over these three months, from $2,288.33 (on June 1, 2017) to $4,703.39 (on August 31, 2017). The exchange rate of the new Bitcoin Cash cryptocurrency also nearly doubled during August 2017. So, it is fair to conclude that the overall market capitalization of Bitcoin and Bitcoin Cash increased significantly, and the implemented hard fork created appreciable excitement on the global cryptocurrency market.

Another development project involving a hard fork, Bitcoin Gold, headed by Jack Liao, CEO of the Bitcoin mining company Hongning Lightning ASIC, may take place on October 25, 2017. The project goal is to create a “decentralized Bitcoin”, allowing the mining process to be simplified and made more accessible to a larger number of participants, which should lessen the influence of major companies.

1.2.      Market trends

Cryptocurrency and digital asset market trends from January 1, 2017 to October 1, 2017 are presented in the figures below (Fig. 1.1-1.5)*.

Table 1.5. Legends and characteristics of the figures

Global Figures Figure** Figure characteristics
Total cryptocurrency market capitalization, USD million Fig. 1.1 This figure shows cryptocurrency and digital asset market capitalization trends from January 1, 2017.
The rate of market change (as a % compared to the start of the year) Fig. 1.1 This figure shows the % change in cryptocurrency and digital asset market capitalization compared to January 1, 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 January 1, 2017.
The rate of market change (as a % compared to previous period) Fig. 1.2 This figure shows the % of weekly change (increase or decrease) in cryptocurrency and digital asset market capitalization from January 1, 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 October 1, 2017, this number had reached 1,091.
Average market capitalization, USD million Fig. 1.3 The figure reflects the growth in the average cryptocurrency and digital asset market capitalization from January 1, 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 The figure shows the time trend (forecast) change in cryptocurrency and digital asset market capitalization.

* Data as of October 1, 2017 00:00 UTC

** The figures below present average data for 24 hours

Data source: coinmarketcap.com

Figure 1.1. Total cryptocurrency market capitalization**

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-1-1

** Average daily data

Figure 1.1 shows a graph of the weekly cryptocurrency market change from January 1, 2017, to October 1, 2017. Over this period, the market capitalization grew from $17,700 million to $146,924 million, a growth of 730% relative to the start of the year. Over the past week the total market capitalization increased from $129,782 million to $146,924 million (as of October 1, 2017).

 

 

Figure 1.2. Change in market capitalization

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-1-2

Despite the significant growth in cryptocurrency market capitalization in Q3 2017 and during the entire year to date, the market is susceptible to sudden and drastic fluctuations. Significant drops occurred over the first two weeks of September (September 3-10 and September 11-17, 2017), when the market lost $25,203 million (-15.1%) and $20,817 million (-15%), respectively, and over the week of July 9-16, 2017 (-28%). The highest growth rate in Q3 was 39% (the week of July 16-23, 2017). Over the past week (September 25, 2017 to October 1, 2017), the total cryptocurrency market capitalization grew by $17,142 million or 13.2%.

 

Figure 1.3. Number of cryptocurrencies and digital assets

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-1-3

The total number of cryptocurrencies and digital assets listed on exchanges in the first three quarters of 2017 grew by 474, increasing in Q3 alone from 881 to 1,091. At the same time, the average capitalization of cryptocurrencies and digital assets grew from $28.7 to $134.7 million.

 

 Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-1-4

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-1-5

On September 15, 2017, a decision was made to suspend the work of the cryptocurrency exchanges in China. As a result, on Saturday, September 30, 2017, trading was halted on a number of Chinese cryptocurrency exchanges, including the largest BTCChina. However, the OKCoin and Huobi exchanges continued their work, and other exchanges changed locations. Around 10 exchanges received permits to trade in Japan from the Financial Services Agency (FSA) of Japan.

On September 29, 2017, the Financial Services Commission of South Korea took a similar decision to that taken by the Chinese. It should be noted that this news from South Korea had virtually no effect on overall cryptocurrency market trends.

Since the Chinese and South Korean authorities banned both the trade in cryptocurrencies and the performance of ICOs, it can be inferred that these countries will gradually introduce clear-cut rules for regulating the circulation of cryptocurrencies on their domestic markets. This has to do with the high growth rates in the circulation of cryptocurrencies, and the resulting high risks and significant exchange rate fluctuations on global cryptocurrency markets.

The Managing Director of the International Monetary Fund, Christine Lagarde, does not believe that cryptocurrencies pose a threat to global central banks and fiat currencies, despite the fact that they are “too volatile, too risky, too energy intensive.” The process of exploring blockchain technology is underway, and may one day be used by the IMF. The IMF Managing Director believes that the use of cryptocurrencies will become “easier and safer” than the use of banknotes, especially in remote regions, and the transition to cryptocurrencies may be further hastened if in time they “become more stable.”

Despite the general positive trend in total cryptocurrency market capitalization growth for the entire year to date, and specifically in Q3, it will take time (most likely until the end of October) for it to gradually stabilize and regain its former growth rates, which slowed because of the events in China and South Korea (the ban on ICOs and cryptocurrency exchanges). An important factor which will determine the development of the cryptocurrency market in Q4 2017 and over the next year will be the response of the main market players to the actions of Chinese and Korean authorities, and the plans of other governments to regulate the market. The risk of wild market fluctuations will remain high.

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

2.1. Brief overview of the cryptocurrency market, news of the week

  • South Korea Bans Raising Money Through ICOs, Bitcoin and Ether Prices Fall [source: Coinspeaker]
  • Bitcoin Gold Project Plans to Fork Bitcoin Again on October 25 [source: Coinspeaker]
  • Japan Issues Cryptocurrency Exchange Licenses [source: Сointelegraph]
  • South Korea Bans Initial Coin Offerings: Report [source: Сryptocoinsnews]
  • ICOs are Here to Stay, Say Valiant Participants in Swiss ICO Summit [source: Сointelegraph]
  • Canada’s Biggest Bank Tests Blockchain for Cross-Border Payments [source: Сoindesk]
  • Macau Finance Regulator Bars Banks from ICO Market [source: Сoindesk]
  • Kik ICO Raises Nearly $100 Million [source: Сryptocoinsnews]
  • SEC Announces Creation of “Cyber Unit” With Broad Powers, Including ICO Oversight [source: Сointelegraph]
  • Ukrainian Central Banker: Bitcoin Is ‘Definitely Not a Currency’ [source: Сoindesk]
  • Gibraltar Issues ICO Advisory Amid Drive Toward Blockchain Regulation [source: Сoindesk]
  • SEC Charges ICO: US Agency Takes Action Against Alleged Token Scammer [source: Сoindesk]
  • Swiss Finance Regulator Is ‘Investigating ICO Procedures’ [source: Сoindesk]
  • Fortress Former CIO Michael Novogratz Establishes World’s Biggest Crypto Hedge Fund [source: Coinspeaker]

Brief overview of the cryptocurrency market (top stories during Q3)

  • China ICO Ban: Impact on the Global ICO Market [source: Сryptocoinsnews]
  • Top China Bitcoin exchange to stop trading [source: BBC]
  • The SEC’s Big Digital Coin Ruling: What It Means [source: Fortune]
  • BTC-e Connected to Bitcoin Money Laundering Arrest in Greece [source: Сoindesk]
  • Segregated Witness Has Officially Activated on the Bitcoin Network [source: Bitcoin.com]
  • Filecoin ICO Raises Record $250 Million from Accredited Investors [source: Сryptocoinsnews]

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

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

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

Indicator Characteristics
Average collected funds (ACF) Average amount of funds collected per ICO project over the period (month, quarter, 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 (month, quarter, year), i.e. the average reward per $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 (month, quarter, year). This indicator is similar to the previous indicator “average token performance” (ATP), but is calculated taking into consideration the weight of the indicator. The parameter “average collected funds” (ACF) is used as a weight.
Weighted average monthly reward on ICO funds (WAMRF) Average weighted monthly performance of funds spent on buying tokens over the period (month, quarter, year). This indicator is similar to the previous indicator “weighted average current reward on ICO funds” (WACRF), but is calculated based on recalculated average monthly performance.

 

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

Indicator January- March

2017

April-

June

2017

July-September

2017

September 25-October 1,

2017

Total amount of funds collected,

USD million*

17.8 1,291.4 1,454.5 109.6
Number of companies that completed an ICO* 8 60 100 7
Maximum collected, USD million (ICO name)** 5.4 (Chronobank) 185

(EOS Stage 1)

232.3

(Tezos)

98.5

(Kin)

Average collected funds, USD million 2.2 21.5 14.5 15.7
Maximum token reward (ICO name) 558.21x (Spectrecoin) 60.49x

(Particl)

20.23x (Bitquence) n/a
Average token reward (ATR)*** 80.72х 5.55х 2.00х n/a
Weighted average current reward on funds (WACRF)**** 22.70x 3.85х 1.75х n/a

*Data source: tokendata.io, only popular and/or successfully completed ICOs (i.e. ICOs which managed 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).

** Date source: tokendata.io, coinschedule.com

***Note: The average token reward for ICO projects was calculated on a quarterly basis (calculations were made as of October 1, 2017). Consequently, the efficiency of contributions or the ratio between the current token price and the token sale price, i.e. the average reward per 1 USD spent on tokens during its token sale, if they are subsequently listed for USD on a cryptocurrency exchange, is $80.72, $5.55, and $2 in the first, second, and third quarters, respectively. To calculate this ratio as of October 1, 2017, the authors used the data from 168 ICOs completed between January 1 and October 1, 2017. The maximum token reward for the period under review was 558.21x for the Spectrecoin ICO (based on the assessment made on October 1, 2017). The data for many ICOs completed after September 1, 2017, is incomplete or non-existent.

**** Weighted average current reward on funds (WACRF) is an indicator similar to Average token reward (ATR), but takes into consideration the amount of funds collected through an ICO (see the Glossary)

Over the past week (September 25-October 1, 2017), the total amount of funds collected was $109.6 million. This total included the results of the seven most successful completed ICOs, among which the highest collected amount was around $98.5 million (Kin). The average amount of funds collected per project was $15.7 million, which is somewhat higher than the same indicator for Q3 as a whole. Please see Table 2.5 for further details on the seven main ICOs over the past week.

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 Value 
The number of projects conducting an active ICO as of the current date (October 1, 2017) 137
The number of projects planning an ICO as of the current date (October 1, 2017) 254
The number of projects planning an ICO between October 2, 2017 and October 8, 2017 14

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

The number of projects conducting active ICOs as of the current date (October 1, 2017) was 137. At present, there is information available on at least 254 planned ICOs to be conducted after October 1, 2017, including 14 ICOs which will start next week.

2.4. Quantitative analysis of the ICO market

    1. Amount of funds collected and number of ICOs

Table 2.4. Amount of funds collected and number of ICOs

Month Collected, USD million Number of ICOs* Average collected funds, USD million
January 4.5 3 1.5
February 9.7 5 1.94
March 4.7 3 1.57
April 127.8 17 7.52
May 168.4 16 10.53
June 995.2 30 33.17
July 461.3 29 15.91
August 330.0 35 9.43
September 659.7 37 17.83
Including last week

September 25-October 1, 2017

109.6 7 15.70

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

Table 2.4 shows that the greatest amount of funds was collected via ICOs in June 2017. In that month, the average amount of funds collected per ICO was $33.17 million. The data for last week (September 25-October 1, 2017) may be adjusted as information on the amounts of funds collected via ICOs is finalized.

Among others, the completed ICO performed by the holding Russian Mining Center (RMC) may be added to this list. The amount of funds collected is estimated at $43.2 million, a record amount for a Russian ICO. RCM Holding planned to use the funds collected to develop a MultiClet processor, which could improve mining efficiency tenfold, and for the production of next-generation Bitcoin miners called Sunrise (source: https://forklog.com/dmitrij-marinichev-anonsiroval-ico-russkoj-majningovoj-kompanii/). However, this information is not available on tokendata.io and coinschedule.com, which were used to collect data for analysis in this publication. For this reason, the results of the RMC ICO were not considered in the calculations.

Figure 2.1. Trends in the amount of funds collected and number of ICOs since the start of the year

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-2-1

  1. Top ICOs

Table 2.5. Top 7 ICOs in terms of the amount of funds collected (week of September 25-October 1, 2017)

# ICO Category Collected, USD million Date
1 Kin Social Network 98.5 September 26, 2017
2 Presearch Infrastructure* 4.5 September 30, 2017
3 STeX Trading & Investing* 3.1 September 30, 2017
4 Atlant Real Estate 1.9 September 30, 2017
5 Magos Trading & Investing* 0.7 September 30, 2017
6 Solvena Trading & Investing* 0.5 September 30, 2017
7 Hydro Miner Pre-Sale Mining 0.4 September 25, 2017
Average collected funds, $ 15.7
Total amount of funds collected** 109.6

* The category was established based on the expert opinions

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

Table 2.5 shows the top 7 ICOs which were successfully completed last week and collected the greatest amounts of funds. In the lead was the Kin project, which is a decentralized ecosystem for services from the creators of the Kik mobile messenger. The idea behind the project is to use a general-purpose cryptocurrency for everyday digital services (chats, social networks, electronic payment services, etc.).

Figure 2.2. Top ICOs in terms of the amount of funds collected(week of September 25-October 1, 2017)

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-2-2 

  1. Top ICOs in their categories

Table 2.6. Top 4 ICOs in terms of the amount of funds collected, Social Network category

ICO Category Collected, USD million Date Token Performance
Kin Social network 98.5 September 26, 2017 n/a
Nexus Social network 6.5 September 15, 2017 n/a
Matchpool Social network 5.6 April 4, 2017 2.06x
Golos Social network 0.5 December 3, 2016 6.50x

 

Table 2.6 lists the top 4 ICOs in the Social Network category. Virtually all of these projects were performed in 2017, and some of them are presently getting ready to enter cryptocurrency exchanges and list their tokens. The biggest ICO in this category is the Kin project, the ICO of which was completed on September 26, 2017. The amount of funds collected exceeds those collected by previous projects by more than 15 times.

 

Figure 2.3. Top 4 ICOs in terms of the amount of funds collected, Social Network category

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-2-3

Second and third place in last week’s rating belong to projects from the categories: Infrastructure (the Presearch ICO, with $4.5 million collected) and Trading & Investing (the STeX ICO, with $3.1 million collected).

The ratings of the ICO projects in these categories were given in previous reports. The Presearch and STeX projects are not among the ten largest in their categories. For reference, the top 10 in the Infrastructure category are given below.

Table 2.7. Top 10 ICOs in terms of the amount of funds collected, Infrastructure category

ICO Category Collected, USD million Date Token Performance
Tezos Infrastructure 232.3 July 13, 2017 n/a
EOS Stage 1 Infrastructure 185.0 July 1, 2017 0.66x
The DAO Infrastructure 168.0 May 28, 2016 n/a
Bancor Infrastructure 153.0 June 12, 2017 0.56x
Status Infrastructure 90.0 June 20, 2017 0.62x
Sonm Infrastructure 42.0 June 17, 2017 0.69x
Aeternity Infrastructure 37.0 June 9, 2017 1.19x
Chainlink Infrastructure 32.0 September 19, 2017 1.45x
Tierion Infrastructure 25.0 July 28, 2017 1.35x
Aragon Infrastructure 24.8 May 17, 2017 2.50x

* Information as of September 24, 2017 (see the previous report for the week of September 18-24, 2017)

As noted earlier, the Token Performance indicators are relatively low right now for all projects in the Top 10 of the Infrastructure category. One of the most successful results was achieved when the Aragon ICO entered the exchange: their Current Token Price to Token Sale Price ratio is 2.5. When considering this indicator, it is important to remember that the Aragon ICO ended on May 17, 2017, so their efficiency grew 2.5 times over the course of about 3.5 months.

Figure 2.4. Top 10 ICOs in terms of the amount of funds collected, Infrastructure category

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-2-4

ICO Category Collected,

USD million

Date Token Performance
Propy Real Estate 15.4 September 15, 2017 n/a
Primalbase Real Estate 7.6 June 28, 2017 0.53x
Atlant Real Estate 1.9 September 30, 2017 n/a

 

Table 2.8 shows the top 3 ICOs in the Real Estate category. All projects were performed in 2017.

 

Figure 2.5. Top 3 ICOs in terms of the amount of funds collected, Real Estate category

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-2-5

Seven projects were successfully completed over the past week (September 25-October 1, 2017), each of which collected more than $100,000, with a total amount of funds collected of at least $109.6 million. The week’s leader was the Kin project ($98.5 million). The total amount of funds collected by the other 17 ICO projects failed to reach even the $100,000 mark (the information for some projects is still being finalized). Overall, project organizers collected 250% more last week than the previous week (September 18-24, 2017). At least another 14 ICOs are planned to take place next week.

Summarizing the results of the successfully completed ICOs since the start of 2017, table 2.9 lists the ten largest ICOs performed during the first three quarters of 2017.

Table 2.9. Top 10 ICOs in terms of the amount of funds collected

Name Category Collected, USD million % Ended On
1 Filecoin Data Storage 257 20% 07.09.2017
2 Tezos Infrastructure 232.32 18% 13.07.2017
3 EOS Stage 1 Infrastructure 185 14% 01.07.2017
4 The DAO Infrastructure 168 13% 28.05.2016
5 Bancor Infrastructure 153 12% 12.06.2017
6 Status Infrastructure 90 7% 20.06.2017
7 TenX Payments 64 5% 24.06.2017
8 MobileGO Gaming & VR 53.07 4% 24.05.2017
9 Sonm Infrastructure 42 3% 17.06.2017
10 Aeternity Infrastructure 36.96 3% 09.06.2017
Top 10 Total 1281.35 100%

 

In all, 181 ICO projects completed in 2016-2017 were analyzed, 168 of which were ICO projects successfully completed in 2017 (according to the tokendata.io and coinschedule.com data).The total amount of funds collected through these projects was $2,479.77 million, of which the top ten accounted for $1,281.35 million or around 50%. Most of the top 10 projects in terms of the amount of funds collected belong to the Infrastructure category (seven projects).

 

Figure 2.6. Top 10 ICOs in terms of the amount of funds collected

quarterly-cryptocurrency-and-ico-market-analysis-q3-2017-figure-2-6

Having analyzed the ICO projects in the 24 categories, the following conclusions can be drawn. Most of the projects belong to the following categories: Infrastructure (48 ICOs), Trading & Investing (28) and Finance (24).

The projects in the following categories collected the largest amount of funds: Infrastructure ($1,150.27 million), Data Storage ($286.22 million), and Trading & Investing ($284.25 million).

The largest average collected funds per ICO indicator (USD million) is seen in the categories: Data Storage ($143.11 million), Infrastructure ($23.96 million), and Payments ($23.13 million).

One of the leading projects in terms of the Max token reward indicator is the Stratis ICO, which belongs to the Infrastructure category. The project initially collected a total of around $675,000, but then the Current Token Price increased 632.78 times compared to the Token Sale Price.

Table 2.10. Analysis by category***

  Category Total amount of funds collected, USD million* Number of companies that completed an ICO* Max collected, USD million** Average collected funds, USD million Max token reward Average token reward (ATR) Weighted average current reward on funds (WACRF)
1 Art & Music 11.44 3 10.71 3.81 n/a n/a n/a
2 Commerce & Advertising 47.22 4 35.00 11.81 6.93 6.18 6.56
3 Commodities 18.60 5 5.50 3.72 24.70 12.80 11.32
4 Communications 8.82 2 4.43 4.41 1.32 1.00 1.00
5 Content Management 26.20 9 7.46 2.91 6.38 5.67 6.01
6 Data Analytics 2.04 1 2.04 2.04 5.75 5.75 5.75
7 Data Storage 286.22 2 257**** 143.11 1.04 1.04 1.04
8 Drugs & Healthcare 8.31 2 7.20 4.16 4.39 4.39 4.39
9 Energy & Utilities 2.41 2 1.98 1.21 2.18 2.18 2.18
10 Events & Entertainment 15.57 4 7.5 3.89 11.56 6.32 6.51
11 Finance 148.01 24 31.65 6.17 20.14 4.40 2.50
12 Gambling & Betting 82.55 12 12.40 6.88 21.32 4.97 3.16
13 Gaming & VR 109.32 10 53.07 10.93 78.32 20.63 1.78
14 Governance 0.26 1 0.26 0.26 n/a n/a n/a
15 Identity & Reputation 35.00 2 33.00 17.50 4.10 4.10 4.10
16 Infrastructure 1150.27 48 232.32 23.96 632.78 58.05 7.49
17 Mining 20.65 2 20.22 10.33 2.09 2.09 2.09
18 Payments 185.01 8 36.6 23.13 30.8 7.49 6.86
19 Real Estate 9.09 2 7.59 4.55 0.53 0.53 0.53
20 Recruitment 14.47 3 9.05 4.82 2.65 2.65 2.65
21 Social Network 12.57 3 6.48 4.19 6.47 4.27 2.39
22 Supply & Logistics 0.85 3 0.5 0.28 n/a n/a n/a
23 Trading & Investing 284.25 28 33.35 10.15 13.38 4.03 3.57
24 Transport 0.64 1 0.64 0.64 n/a n/a n/a
  Total 2479.77 181 815.95

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

** Data source: tokendata.io, coinschedule.com

***Data as of October 1, 2017

ICO projects from the Infrastructure category lead in practically all indicators presented in table 2.10 (highlighted yellow).

Table 2.10. Average efficiency of contributions by category

N Category Number of companies that completed an ICO* Average collected funds, USD million Average

[(token reward – 1)/ month]

Average [(token/BTC reward -1)

/ month]

1 2 3 4 5 6
1 Art & Music 3 3.81 n/a n/a
2 Commerce & Advertising 4 11.81 1.44 0.66
3 Commodities 5 3.72 0.63 -0.01
4 Communications 2 4.41 0.04 -0.18
5 Content Management 9 2.91 0.72 0.09
6 Data Analytics 1 2.04 3.31 3.19
7 Data Storage 2 143.11 0.01 -0.11
8 Drugs & Healthcare 2 4.16 0.85 0.39
9 Energy & Utilities 2 1.21 0.13 0.04
10 Events & Entertainment 4 3.89 0.45 -0.05
11 Finance 24 6.17 1.06 0.36
12 Gambling & Betting 12 6.88 0.66 0.06
13 Gaming & VR 10 10.93 2.11 0.31
14 Governance 1 0.26 n/a n/a
15 Identity & Reputation 2 17.50 0.92 0.46
16 Infrastructure 48 23.96 4.94 0.78
17 Mining 2 10.33 0.53 0.19
18 Payments 8 23.13 1.75 0.89
19 Real Estate 2 4.55 -0.15 -0.22
20 Recruitment 3 4.82 0.22 -0.05
21 Social Network 3 4.19 0.36 -0.03
22 Supply & Logistics 3 0.28 n/a n/a
23 Trading & Investing 28 10.15 0.60 0.18
24 Transport 1 0.64 n/a n/a

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

** Data source: tokendata.io, coinschedule.com

***Data as of October 1, 2017

Column 5 of table 2.10 shows an indicator similar to the Average token performance (ATP) indicator (see table 2.1), which describes the average efficiency of contributions to tokens for the month, and is calculated using the formula:

Average [(token reward – 1)/ month]

 If the value of the Average [(token reward – 1)/ month] is > 0, the contributions are efficient.

Month – the number of months that have passed since the completion of the ICO.

Average token performance (ATP) – average performance indicator of funds spent on buying tokens or the average ratio of current token price to token sale price for the period (month), i.e. the average reward per $1 spent on buying tokens during the token sale, if they are subsequently listed on cryptocurrency exchanges for USD.

The largest Average [(token reward – 1)/month] indicator is seen in the Infrastructure category. This means that, on average, each US dollar spent on buying the tokens of Infrastructure projects during the token sale, if they are subsequently listed on cryptocurrency exchanges for USD, is recovered in full and brings in an additional $4.94 per month.

Column 6 of table 2.10 shows an indicator similar to the Token/BTC reward indicator (see the Glossary), which describes the ratio of the average economic benefit/disadvantage to a backer from buying tokens during the token sale relative to buying BTC for the month, and is calculated using the formula:

Average [(token /BTC reward – 1)/ month]

If the value of the Average [(token /BTC reward – 1)/ month] is > 0, the contributions made to the tokens of this category of ICOs were more effective than purchasing BTC.

The Glossary is given in Annex 1.

Annex 1 – Glossary

Key terms Definitions
Initial coin offering, ICO A form of collective support of innovative technological projects and start-ups through the issue and sale of new cryptocurrencies to backers. Also called an “initial token offering”. Among Russian speakers the abbreviation ICO, which is similar to IPO (initial public offering) is most often used.
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 Aggregate market value of cryptocurrencies circulating on the market.
Total cryptocurrency market capitalization Cryptocurrency and digital asset market capitalization, i.e. the aggregate market value of all cryptocurrencies and digital assets circulating on the market.
Token reward Token performance (current token price / token price during the ICO), i.e. the reward per $1 spent on buying tokens.
Dominance Market share, i.e. the ratio of market capitalization of a particular cryptocurrency (token) to total cryptocurrency market capitalization. Expressed as a %.
Token sale price

Current token price

Token sale price during the ICO

Current token price

Not Mineable

 

A token is not mineable – the term is used for cryptocurrencies (tokens) which cannot be mined or issued through mining.
Pre-mined A pre-mined coin. The term is used for cryptocurrencies (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 % compared to the beginning of the year) The 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 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) Rate of market increase (as a % compared to 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) Market growth rate (as a % compared to the start of the year), 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 time when this glossary was compiled over 1,070 cryptocurrencies and digital assets 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.
Token reward Performance of funds spent on buying tokens or the 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 sale Alternative performance indicator 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 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 sale Similar to the above: Alternative performance indicator of funds spent on buying tokens during the token sale, i.e. if instead of buying 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 reward This 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 spent his funds more efficiently on buying tokens than if he were to spend his funds on ETH.

 

Token/BTC reward This 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 spent his funds more efficiently on buying tokens than if he were to spend his funds on BTC.

 

ZAK-n Crypto index The index is calculated in percentages and represents a ratio between the 24-hour trade volume (transactions) on cryptocurrency exchanges per day (Volume 24h) for n dominant cryptocurrencies to their total market capitalization.

 

ZAK-3 Crypto index calculations include three dominant cryptocurrencies: Bitcoin, Ethereum, and Ripple, which at the start of 2017 had the greatest market capitalization.

 

ZAK-5 Crypto index calculations include the trade volume and market capitalization for five cryptocurrencies: Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash. The index for these five cryptocurrencies with the greatest current market capitalization (as of September 2017) was calculated for the period starting August 2017, since Bitcoin Cash only entered the cryptocurrency exchanges in August 2017 as a result of the Bitcoin hard fork.

 

 


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