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

Information as of October 22, 2017 (results for the period from July 1, 2017)

This report was created by:

This report presents data on the cryptocurrency and ICO market changes that took place in the third quarter, with special emphasis on an analysis of the changes that took place during the third week of Q4 2017.

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

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

Table 1.1. Trends in the capitalization of the cryptocurrency market and main cryptocurrencies from August 1, 2017 to October 22, 2017

#Parameter1-Aug-171-Sep-17MoM, %1-Oct-17MoM, %8-Oct-17WoW, %15-Oct-17WoW, %22-Oct-17WoW, %
1Total market capitalization, USD billion89.54171.6491.69%147.87-13.85%149.911.36%176.7715.20%172.59-0.36%
2Altcoin market capitalization, USD billion45.2395.11110.28%75.91-20.19%76.330.55%79.764.30%72.15-10.55%
Altcoin dominance, %50.51%55.41%9.70%51.34%-7.35%50.92%-0.82%45.12%-12.85%41.80%-10.15%
3Bitcoin price, $2689.444627.2372.05%4341.05-6.18%4429.672.00%5835.9624.10%6036.666.88%
Bitcoin market capitalization, USD billion44.3176.5372.71%72.05-5.86%73.582.08%97.0124.16%100.446.96%
Bitcoin dominance, %49.49%44.59%-9.90%48.72%9.27%49.08%0.73%54.88%10.57%58.20%7.29%
4Ethereum price, $200.97355.6476.96%301.55-15.21%311.063.06%339.538.39%300.55-11.74%
Ethereum market capitalization, USD billion18.8233.5778.37%28.62-14.76%29.553.17%32.298.49%28.62-11.58%
Ethereum dominance, %21.02%19.56%-6.95%19.35%-1.07%19.71%1.83%18.27%-7.91%16.59%-11.18%
5Litecoin price, $40.8979.9795.57%55.14-31.05%52.49-5.05%64.1318.15%58.27-13.71%
Litecoin market capitalization, USD billion2.134.2197.65%2.93-30.36%2.80-4.83%3.4218.29%3.12-13.59%
Litecoin dominance, %2.38%2.45%3.11%1.98%-19.08%1.87%-6.27%1.94%3.65%1.81%-13.19%
6Smith + Crown Indexn/a10345n/a9147-13.10%92891.53%1105615.98%112501.72%
7Volume (24h) 3 Crypto, USD million30303757123.99%1566-139.94%213726.73%289226.10%2438-18.63%
Market Cap 3 Crypto, USD million72942123740169.64%108240-14.32%1123243.64%13922719.32%137191-1.48%
ZAK-3 crypto index4.15%3.04%1.45%1.45%-109.89%1.90%23.96%2.08%8.40%1.78%-17.05%
8Volume (24h) 5 crypto, USD millionn/a5702n/a1830-211.57%244125.04%347929.82%2890-20.37%
Market cap 5 crypto, USD millionn/a137216n/a118380-15.91%1211262.27%14803518.18%145713-1.59%
ZAK-5 crypto indexn/a4.16%n/a1.55%-168.80%2.02%23.30%2.35%14.23%1.98%-18.48%

* Data as of October 23, 2017, 00:00 UTC

** ZAK-5 Crypto index calculated from September 1, 2017, since the Bitcoin Cash cryptocurrency only entered the exchange on August 1, 2017, after the Bitcoin hard fork.

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

In the third week of October (October 16-22, 2017) total cryptocurrency market capitalization varied over a range from USD 176.77 to USD 156.5 billion, and at the end of the week equaled USD 172.59 billion (see Table 1.1).

During the period from October 16-22, the Bitcoin exchange rate increased by 6.88%, while the Ethereum and Litecoin exchange rates fell by 11.74% and 13.71%, respectively.

Therefore, a shift in dominance in favor of Bitcoin was seen on the market over the past week, with its contribution to total cryptocurrency market capitalization increasing from 54.88% to 58.2%. Accordingly, altcoin dominance (%) decreased from 45.12% to 41.8%.

Last week the Bitcoin exchange rate appreciated from $5,835.96 to $6,036.66. Since the beginning of the month, the exchange rate has ranged from $4,164.05 (on October 5, 2017) to $6,194.88 (on October 21, 2017), i.e. by more than $2,000 (Table 1.4.а).

The Smith + Crown Index for September fell from 10,345 to 9,147 due to market fluctuations, but during the third week of October it increased to 11,250.

To analyze trading activity on cryptocurrency exchanges, the ZAK-n Crypto index is calculated (see the Glossary). The values of the ZAK-3 Crypto and ZAK-5 Crypto indices are presented in Tables 1.1, 1.2, 1.3. For example, on October 16, 2017, and October 18, 2017, the 24-hour trading volumes (Volume 24h) for the three dominate cryptocurrencies (Bitcoin, Ethereum, Ripple) equaled $3,664 and $3,360 million (Table 1.3). All told, the daily values of the ZAK-3 Crypto and ZAK-5 Crypto indices exceeded 2.5% of the market capitalization of the analyzed cryptocurrencies. The result of this increase in demand for cryptocurrencies was a significant change in their prices.

Table 1.2. Daily ZAK-3 Crypto index calculation (from October 1, 2017, to October 22, 2017)

Crypto Bitcoin (BTC)Ethereum (ETH)Ripple (XRP)3 Crypto
 Price OpenVolume (24h)Market capPrice OpenVolume (24h)Market capPrice OpenVolume (24h)Market capVolume (24h) 3 cryptoMarket cap 3 cryptoZAK-3 crypto index
Date$USD millionUSD million$USD millionUSD million$USD millionUSD millionUSD millionUSD million%
Oct 22, 20176036.72 035 100 438 300.6327 28 625 0.211076 8 129 2 438 137 191 1.8%
Oct 21, 20175996.82 20799 763303.640828 9070.21021178 0992 732136 7692.0%
Oct 20, 20175708.12 35494 948308.139729 3260.21511838 2882 934132 5622.2%
Oct 19, 20175583.71 78192 867314.535029 9380.21823058 4092 435131 2141.9%
Oct 18, 20175603.82 39993 190316.960630 1610.23123548 9093 360132 2602.5%
Oct 17, 20175741.61 82295 469333.551031 7280.25614119 8682 743137 0652.0%
Oct 16, 20175687.62 00894 559336.769332 0290.263496310 1493 664136 7372.7%
Oct 15, 20175836.01 976 97 012 339.5635 32 292 0.2575280 9 923 2 892 139 227 2.1%
Oct 14, 20175643.51 66993 803338.951732 2220.261221110 0632 397136 0881.8%
Oct 13, 20175464.23 61590 812304.11 30428 9110.24833999 5845 319129 3074.1%
Oct 12, 20174829.62 79280 257303.552828 8510.265024510 2313 564119 3393.0%
Oct 11, 20174789.31 22279 578301.226428 6260.260716110 0621 648118 2661.4%
Oct 10, 20174776.21 59779 352297.636028 2810.25283849 7582 341117 3922.0%
Oct 9, 20174614.51 96976 657308.755929 3280.278861010 7593 138116 7442.7%
Oct 8, 20174429.71 314 73 575 311.1293 29 551 0.2383530 9 198 2 137 112 324 1.9%
Oct 7, 20174369.490772 565308.934229 3400.2340789 0301 327110 9361.2%
Oct 6, 20174324.51 07071 811295.231928 0310.23771679 1151 556108 9571.4%
Oct 5, 20174229.91 16270 234292.825427 8000.21564048 2661 820106 3001.7%
Oct 4, 20174319.41 11771 713292.825827 7940.20321247 7921 498107 2991.4%
Oct 3, 20174408.51 28873 181297.532228 2390.2032497 7921 658109 2121.5%
Oct 2, 20174395.81 43272 963302.533928 7090.2061777 9021 849109 5731.7%
Oct 1, 20174341.11 208 72 047 301.6306 28 615 0.197651 7 578 1 566 108 240 1.4%

* Data as of October 23, 2017, 00:00 UTC

Data source: coinmarketcap.com

The 24-hour trading volumes (Volume 24h) for the five dominant cryptocurrencies (Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash) at the end of last week totaled USD 2,890 million (Tables 1.1, 1.3), i.e. 2% of their market capitalization. The ZAK-3 Crypto and ZAK-5 Crypto indices are considered in more detail in Tables 1.2 and 1.3.

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

CryptoLitecoin (LTC)Bitcoin Cash (BCH)5 Crypto
 Price OpenVolume (24h)Market capPrice OpenVolume (24h)Market capVolume (24h)

5 crypto

Market cap

5 crypto

ZAK-5 crypto index
Date$USD millionUSD million$USD millionUSD millionUSD millionUSD million%
October 22, 201758.2797 3 116 323.5356 5 405 2 890 145 713 2.0%
October 21, 201760.31403 224326.751305 4593 001145 4522.1%
October 20, 201759.811513 197330.91605 5283 245141 2872.3%
October 19, 201760.821613 250339.271965 6672 791140 1312.0%
October 18, 201759.592843 183373.654776 2414 121141 6842.9%
October 17, 201764.672053 454313.71 0085 2403 956145 7582.7%
October 16, 201765.722003 509315.261185 2653 982145 5112.7%
October 15, 201764.13454 3 423 322.42133 5 385 3 479 148 035 2.4%
October 14, 201759.413133 170321.541645 3702 874144 6272.0%
October 13, 201760.553573 230314.152885 2435 964137 7804.3%
October 12, 201750.893412 714315.472625 2624 168127 3153.3%
October 11, 201750.75572 706320.21325 3411 837126 3131.5%
October 10, 201750.15902 673313.223685 2242 799125 2892.2%
October 9, 201753.081522 829342.762885 7163 579125 2892.9%
October 8, 201752.49101 2 797 360.09204 6 005 2 441 121 126 2.0%
October 7, 201752.14522 777363.6916 0631 470119 7761.2%
October 6, 201751.64592 749355.441825 9271 797117 6331.5%
October 5, 201751.4702 736358.422685 9712 158115 0081.9%
October 4, 201752.28772 782404.22526 7301 827116 8111.6%
October 3, 201753.39892 841421.791307 0221 877119 0751.6%
October 2, 201754.55952 901415.872206 9222 164119 3961.8%
October 1, 201755.14100 2 932 433.38164 7 208 1 830 118 380 1.5%

 

The high trading volume (Volume 24h) relative to market capitalization contributes to increased volatility and wild price changes on the cryptocurrency market. One of the previous reports considered the relative trends in the Bitcoin and Ethereum exchange rates from the start of the year. The graph below shows their price trends from the start of October (fig. 1; Tables 1.4.a, 1.4.b).

Figure 1. Price trends of Bitcoin, Ethereum

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-1

Figure 1 shows that the Ethereum exchange rate fell last week, against the background of an increase in the Bitcoin exchange rate. The Byzantium hard fork, aimed at improving the functioning of the platform and increasing the speed of the network, took place in the Ethereum network on October 16, 2017. During the days leading up to the hard fork, the cryptocurrency’s exchange rate demonstrated a significant increase of 11-12%; however, starting on October 16, 2017, it began to fall. At present, it has rebounded to its level at the beginning of the month (around $300).

Right now, two potential new Bitcoin hard forks, which would, of course, impact the demand for this cryptocurrency, are the subject of wide speculation (see the previous reports).

Below the trends in the Bitcoin and Bitcoin Cash exchange rates are considered (see Tables 1.4.a, 1.4.b; fig. 2).

Figure 2. Price trends of Bitcoin (BTC), Bitcoin Cash (BCH)

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-2

Figure 2 illustrates the heightened interest of market participants in Bitcoin and the fall in demand for the alternative cryptocurrency Bitcoin Cash that has been observed since the start of October 2017. However, there was a sharp increase of 18.5% in demand for Bitcoin Cash on October 17, 2017. The exchange rate increased from $313.70 to $373.65, but then gradually fell back to $323.50. A certain dependence between these cryptocurrencies is discernable, owing mainly to alternative contributions (partially speculative) that reflect how quickly and stably the network is functioning. The much higher level of market capitalization of Bitcoin compared to Bitcoin Cash (more than 18.5 times higher) should also be noted.

Below is an analysis of the daily change in the Bitcoin, Bitcoin Cash, and Ethereum exchange rates from the beginning of October 2017 (Tables 1.4.a, 1.4.b, 1.4.c).

Table 1.4.а. Daily change in the Bitcoin (BTC) exchange rate, trading volume (Volume 24h) and capitalization, USD (from October 1, 2017, to October 22, 2017)

DateOpen, $High, $Low, $Range, $Close, $DoD, %D, %Index, rate to start of yearVolume (24h), USD millionMarket cap, USD million
October 22, 20176036.666076.265792.34283.926008.4299.6%-0.46.022 035100 438
October 21, 20175996.796194.885965.07229.816031.60100.3%0.36.042 20799 763
October 20, 20175708.116060.115627.23432.886011.45105.3%5.36.022 35494 948
October 19, 20175583.745744.355531.06213.295708.52102.1%2.15.721 78192 867
October 18, 20175603.825603.825151.44452.385590.6999.7%-0.35.602 39993 190
October 17, 20175741.585800.355472.72327.635605.5197.9%-2.15.611 82295 469
October 16, 20175687.575776.235544.21232.025725.59100.8%0.85.742 00894 559
October 15, 20175835.965852.485478.61373.875678.1997.4%-2.65.691 97697 012
October 14, 20175643.535837.705591.64246.065831.79103.3%3.35.841 66993 803
October 13, 20175464.165840.305436.85403.455647.21103.7%3.75.663 61590 812
October 12, 20174829.585446.914822.00624.915446.91112.9%12.95.462 79280 257
October 11, 20174789.254873.734751.63122.104826.48100.9%0.94.831 22279 578
October 10, 20174776.214922.174765.10157.074781.99100.2%0.24.791 59779 352
October 9, 20174614.524878.714564.25314.464772.02103.5%3.54.781 96976 657
October 8, 20174429.674624.144405.64218.504610.48104.1%4.14.621 31473 575
October 7, 20174369.354443.884321.05122.834426.89101.3%1.34.4390772 565
October 6, 20174324.464413.274320.5392.744370.81101.0%1.04.381 07071 811
October 5, 20174229.884362.644164.05198.594328.41102.3%2.34.341 16270 234
October 4, 20174319.374352.314210.42141.894229.3698.0%-2.04.241 11771 713
October 3, 20174408.464432.474258.89173.584317.4897.9%-2.14.321 28873 181
October 2, 20174395.814470.234377.4692.774409.32100.1%0.14.421 43272 963
October 1, 20174341.054403.744269.81133.934403.74101.5%1.54.411 20872 047

* Data as of October 23, 2017, 00:00 UTC

Data source: coinmarketcap.com

Table 1.4.b. Daily change in the Ethereum (ETH) exchange rate, trading volume (Volume 24h) and capitalization, USD (from October 1, 2017, to October 22, 2017)

DateOpen, $High, $Low, $Range, $Close, $DoD, %D, %Index, rate to start of yearVolume (24h), USD millionMarket cap, USD million
October 22, 2017300.55305.50292.8112.69295.4598.4%-1.636.1632728 625
October 21, 2017303.57303.93291.7712.16300.1998.7%-1.336.7440828 907
October 20, 2017308.05311.44303.497.95304.0198.7%-1.337.2139729 326
October 19, 2017314.54316.71305.8310.88308.0998.0%-2.037.7135029 938
October 18, 2017316.94317.24290.6426.60314.3299.1%-0.938.4760630 161
October 17, 2017333.48333.48311.7921.69317.0895.1%-4.938.8151031 728
October 16, 2017336.71349.35332.0417.31333.3899.0%-1.040.8169332 029
October 15, 2017339.53342.72320.4322.29336.6099.1%-0.941.2063532 292
October 14, 2017338.85347.98334.7013.28339.63100.3%0.341.5751732 222
October 13, 2017304.08348.60299.6648.94338.76111.4%11.441.461 30428 911
October 12, 2017303.50309.15303.295.86304.14100.2%0.237.2352828 851
October 11, 2017301.18304.39299.105.29303.46101.2%1.237.1426428 626
October 10, 2017297.60306.15293.1712.98299.87100.8%0.836.7036028 281
October 9, 2017308.67309.31288.1921.12297.3996.4%-3.636.4055929 328
October 8, 2017311.06312.54308.034.51308.6199.2%-0.837.7729329 551
October 7, 2017308.89313.13304.988.15311.12100.8%0.838.0834229 340
October 6, 2017295.15308.84294.9513.89308.59104.3%4.337.7731928 031
October 5, 2017292.77298.04288.849.20295.86101.1%1.136.2125427 800
October 4, 2017292.75299.39290.898.50292.66100.1%0.135.8225827 794
October 3, 2017297.48300.11288.1311.98292.4698.3%-1.735.8032228 239
October 2, 2017302.48302.92294.588.34297.4898.4%-1.636.4133928 709
October 1, 2017301.55303.19295.068.13302.34100.3%0.337.0130628 615

* Data as of October 23, 2017, 00:00 UTC

Data source: coinmarketcap.com

During the period from October 1-22, 2017, the Bitcoin exchange rate increased from $4,341.05 to $6,008.42, while the Ethereum exchange rate dropped from $301.55 to $295.45 (Tables 1.4.a, 1.4.b), with the largest appreciation in these two cryptocurrencies being seen in the second week of the month. The largest fluctuations in the daily range (Range) of the Bitcoin and Ethereum exchange rates were $624.91 (on October 12, 2017) and $48.94 (on October 13, 2017), respectively. The price trends are shown in figures 3, 4.

The Bitcoin and Ethereum exchange rates have grown by a factor of 6.02 and 36.16, respectively, since the start of 2017 (see Tables 1.4.a, 1.4.b).

Figure 3, 4. Price trends of Bitcoin and Ethereum

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-34

As can be seen from figures 2 and 3, an increase in the Bitcoin exchange rate and a slight decrease in the Ethereum exchange rate has been observed from the start of the month. The Ethereum exchange rate also fell last week, apparently due for the most part to the instability of the network due to the testing of the new Ethereum software after the hard fork. Due to this fact, we believe that the purchase of this cryptocurrency is unadvisable until it stabilizes. After the stabilization phase, which could last several days, the resumption of Ethereum’s upward trend is possible.

Table 1.4.c. Daily change in the Bitcoin Cash (BCH) exchange rate, trading volume (Volume 24h) and capitalization, USD (from October 1, 2017, to October 22, 2017)

DateOpen, $High, $Low, $Range, $Close, $DoD, %D, %Index, rate to start of yearVolume (24h), USD millionMarket cap, USD million
October 22, 2017323.5355.5323.532.0331.7102.6%2.60.873565 405
October 21, 2017326.8328.5317.511.0323.498.8%-1.20.851305 459
October 20, 2017330.9333.0323.19.9327.499.0%-1.00.861605 528
October 19, 2017339.3339.3326.313.0330.897.5%-2.50.871965 667
October 18, 2017373.7376.2313.862.4339.291.2%-8.80.894776 241
October 17, 2017313.7395.0309.685.3371.7118.5%18.50.981 0085 240
October 16, 2017315.3318.0310.57.5313.699.6%-0.40.831185 265
October 15, 2017322.4323.6307.715.9315.097.8%-2.20.831335 385
October 14, 2017321.5327.4317.410.1322.0100.2%0.20.851645 370
October 13, 2017314.2323.1304.418.7321.5102.6%2.60.852885 243
October 12, 2017315.5330.1310.719.4313.299.5%-0.50.822625 262
October 11, 2017320.2321.3312.19.1314.997.9%-2.10.831325 341
October 10, 2017313.2352.0311.740.3321.6102.4%2.40.853685 224
October 9, 2017342.8342.8289.053.7314.291.8%-8.20.832885 716
October 8, 2017360.1362.5337.025.5342.294.9%-5.10.902046 005
October 7, 2017363.6364.9356.18.8360.899.4%-0.60.95916 063
October 6, 2017355.4371.3355.016.3363.0102.0%2.00.961825 927
October 5, 2017358.4371.2348.522.7355.899.2%-0.80.942685 971
October 4, 2017404.2404.5354.649.9358.588.7%-11.30.942526 730
October 3, 2017421.8421.8395.726.1404.296.0%-4.01.061307 022
October 2, 2017415.9430.9411.819.0421.2101.5%1.51.112206 922
October 1, 2017433.4436.9415.221.8415.296.0%-4.01.091647 208

* Data as of October 23, 2017, 00:00 UTC

Data source: coinmarketcap.com

The Bitcoin Cash exchange rate depreciated from $433.40 to $331.70 (Table 1.4.c) during the analyzed period (October 1-22, 2017), with the largest fluctuation in the daily range equaling $85.30 (on October 17,2017).

The total Bitcoin Cash exchange rate index from August 1, 2017, equaled 0.87 (the rate of $380 at the close of the day on August 1, 2017, was taken as the basis for the calculation), i.e. during the period after the Bitcoin hard fork and the appearance of the new Bitcoin Cash cryptocurrency its exchange rate has fallen by 13%, while the Bitcoin exchange rate has appreciated over the same period by 121%.

 1.2 Market trends

The weekly cryptocurrency and digital asset market trends from July 2, 2017, to October 22, 2017, are presented as graphs (Fig. 1.1-1.5)*.

Table 1.5. Legends and descriptions of the figures

Global FiguresFigure**Description
Total cryptocurrency market capitalization, USD millionFig. 1.1This figure shows cryptocurrency and digital asset market capitalization trends from July 2, 2017.
The rate of market change (as a % compared to the beginning of the year)Fig. 1.1This 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 the previous period)Fig. 1.2This figure shows the weekly change in USD million (increase or decrease) in cryptocurrency and digital asset market capitalization from July 2, 2017.
The rate of market change (as a % compared to the previous period)Fig. 1.2This figure shows the % of weekly change (increase or decrease) in cryptocurrency and digital asset market capitalization from July 2, 2017.
Number of cryptocurrencies and digital assetsFig.1.3This 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 22, 2017, this number had already reached 1,123.
Average market capitalization, USD millionFig. 1.3This figure reflects the growth in the average cryptocurrency and digital asset market capitalization from July 2, 2017, i.e. the ratio between the market capitalization of all cryptocurrencies and digital assets and their number.
Forecast of total cryptocurrency market capitalizationFig. 1.4, 1.5This figure shows the time trend (forecast) change in cryptocurrency and digital asset market capitalization.

* Data as of October 23, 2017, 00:00 UTC

** The figures below present average data for 24 hours

Data source: coinmarketcap.com

Figure 1.1. Total cryptocurrency market capitalization**

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-1-1

** Average daily data

Figure 1.1 shows a graph of the weekly cryptocurrency market change from July 2, 2017, to October 22, 2017. Over this period, the market capitalization grew from $94,716 million to $171,232 million, a growth of 867% relative to the start of the year. Over the past week the total market capitalization decreased from $174,167 million to $171,232 million (as of October 22, 2017). The decrease was caused primarily by a reduction in the market capitalization of altcoins from USD 79.76 to USD 72.15 billion, while the capitalization of Bitcoin increased from USD 97.01 to 100.44 billion, i.e. one can conclude that there has been a partial transfer of funds from alternative cryptocurrencies to Bitcoin.

Figure 1.2. Change in market capitalization

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-1-2

Despite the significant growth in cryptocurrency market capitalization in Q3 2017 and over 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 (October 16-22, 2017), total cryptocurrency market capitalization decreased by $2,935 million or 2%.

Figure 1.3. Number of cryptocurrencies and digital assets

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-1-3

The total number of cryptocurrencies and digital assets listed on exchanges during the third quarter grew from 881 to 1,123. Their number increased by 26 over the past week alone. At the same time, the average cryptocurrency and digital asset capitalization decreased from $158.8 to $152.5 million over the analyzed period.

Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-1-4

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-1-5

In the first week of October (October 2-8, 2017), the market stabilized after the fairly sharp fluctuations (drops) in September, with gradual growth in its capitalization being seen. The second week of October (October 9-15, 2017) was characterized by market growth of 16%. In the third week of October (October 16-22, 2017) the market adjusted downward by -2%. Many experts predict a significant increase in the exchange rates of the main cryptocurrencies by the end of the year. We believe that cryptocurrency exchange rates will continue to grow, but this growth will mainly be seen among the ten cryptocurrencies with the largest capitalization, with the Bitcoin exchange rate, in particular, exceeding $10,000 by the end of the current year. However, the risk of market fluctuations will remain.

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

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

  • Mastercard Expands Access to B2B Blockchain Payment Tools [source: Сoindesk]
  • Japanese Police Arrest Ripple Exchange Operator for Fraud [source: Сryptocoinsnews]
  • Byzantium Hard Fork Activates on Ethereum Network [source: Сryptocoinsnews]
  • Bitcoin Breaks $6,000 Barrier, Market Cap Now Exceeds $100 Billion [source: Сointelegraph]
  • Sberbank, Russia’s Largest State-Owned Bank, is Eyeing Ethereum Integration [source: Сointelegraph]
  • Microsoft CEO Issues Blockchain Challenge to Interbank Messaging Service Swift [source: Сointelegraph]
  • China: WeiyangX Fintech Review [source: Crowdfundinsider]
  • You’ve Got to See What the CEOs of JPMorgan Chase and Wells Fargo Just Said About Bitcoin [source: Foxbusiness]

    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 (see Table 2.1).

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

IndicatorDescription
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) ICOs4

IndicatorSeptember

2017

October 1-8,

2017

October 9-15,

2017

October 16-22,

2017

Total amount of funds collected,

USD million1

730.3105.7199.694.3
Number of companies that completed an ICO14510148
Maximum collected, USD million (ICO name)257 (Filecoin)26.5 (Power Ledger)32.7 (Airswap)40.0 (Electroneum)
Average collected funds, USD million16.210.614.311.8
Max token reward (ICO name)5.00x (Chainlink)n/a1.00x (Airswap)0.77x (Request network)
Average token reward (ATR)22.32xn/a1.00x0.77x
Weighted average current reward on funds (WACRF)32.71xn/a1.00x0.77x

Notes:

1 Data source: tokendata.io, coinschedule.com. 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. For some ICOs information may be incomplete (for instance, the amount of funds collected).

2 The average token reward for ICO projects was calculated as of October 8, 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 USD 1 spent on tokens during its token sale, if they are subsequently listed for USD on a cryptocurrency exchange, is $2.32 for projects completed in September 2017. To calculate this ratio, the authors used the data from 45 ICOs completed between September 1 and October 1, 2017. The maximum token reward for the period under review was 5x for the Chainlink ICO (based on the assessment made on October 8, 2017).

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

4 The data for many ICOs completed after October 1, 2017, is incomplete or non-existent.

The data for the second week of October (October 9-15, 2017) were adjusted to account for the appearance of more complete information on completed ICOs. The total amount of funds collected was $199.6 million. The amount collected through ICOs last week (October 16-22, 2017) was lower, and equaled $94.3 million. This total included the results of the eight most successful completed ICOs, with the highest collected amount equaling around $40 million (Electroneum). The average amount of funds collected per project was $11.8 million, which is somewhat less than the same indicator for September as a whole. Please see Table 2.5 for further details on the eight 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

IndicatorValue 
The number of projects conducting an active ICO as of the current date (October 22, 2017)293
The number of projects planning an ICO as of the current date (October 22, 2017)196
The number of projects planning an ICO between October 23-29, 20179

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

The number of projects conducting active ICOs as of the current date (October 22, 2017) is 293. At present, there is information available on at least 196 planned ICOs to be conducted after October 22, 2017, including 9 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

MonthCollected, $ millionNumber of ICOs*Average collected, $ million
January4.531.5
February9.751.94
March4.731.57
April127.8177.52
May168.41610.53
June995.23033.17
July461.32915.91
August330.0359.43
September730.34516.23
October 1-8, 2017105.71010.6
October 9-15, 2017199.61414.3
October 16-22, 201794.3811.8

* Information on funds collected is not available for all ICOs (information for last week is tentative and may be adjusted).

Table 2.4 shows that the greatest amount of funds was collected via ICOs in June 2017. In that month, the average collected funds per ICO was $33.17 million.

The data for the past week (October 16-22, 2017) may be adjusted as information on the amounts of funds collected via ICOs is finalized.

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

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-2-1

 

  1. Top ICOs

Table 2.5. Top 8 ICOs in terms of the amount of funds collected (October 16-22, 2017)

#Name of ICO***Category**Collected, $ millionDate
1ElectroneumInfrastructure40October 20, 2017
2Request NetworkPayments*33.3October 16, 2017
3ChangePayments*15.7October 16, 2017
4DOVUData Storage*2.6October 17, 2017
5GimliGaming & VR*1.3October 21, 2017
6ETCHPayments*0.9October 18, 2017
7Databroker DAOData Storage*0.3October 16, 2017
8QvoltaTrading & Investing*0.2October 20, 2017
Total collected funds94.3
Average collected funds, $11.8

* The category was established based on expert opinions.

** When compiling the lists of top ICOs, information from the websites tokendata.io, coinschedule.com and other specialized sources was used. The ICO project categories were taken from the website coinschedule.com. If there is no information on the website concerning the project category at the time of compilation of this analytical report, the category is determined by experts.

*** 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 8 ICOs which were successfully completed last week and collected the greatest amounts of funds. In the lead was the Electroneum project, which is focused on the creation of a cryptocurrency for use in a mobile application. The Electroneum cryptocurrency is based on accessibility and ease of use of all financial and technological capabilities for every smartphone owner, including mobile mining, simple fund transfers, online and offline wallets.

Figure 2.2. Top 8 ICOs in terms of the amount of funds collected (October 16-22, 2017)

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-2-2

  1. Top ICOs in their categories

The list of top ICOs for the week includes the following categories of ICO projects.

Table 2.6. Top 10 ICOs in terms of the amount of funds collected, Infrastructure category

Name of ICOCategory**Collected, $ millionDateToken performance
1TezosInfrastructure232.3July 13, 2017n/a
2EOS Stage 1Infrastructure185July 1, 2017n/a
3The DAOInfrastructure168May 28, 2016n/a
4BancorInfrastructure153June 12, 20170.52x
5KinInfrastructure97September 26, 20170.76x
6StatusInfrastructure90June 20, 20170.70x
7ICONInfrastructure42.8September 20, 2017n/a
8SonmInfrastructure42June 17, 20170.97x
9ElectroneumInfrastructure40October 20, 2017n/a
10AeternityInfrastructure37June 9, 20171.02x

* The category was established based on expert opinions.

** When compiling the lists of top ICOs, information from the websites tokendata.io, coinschedule.com and other specialized sources was used. The ICO project categories were taken from the website coinschedule.com. If there is no information on the website concerning the project category at the time of compilation of this analytical report, the category is determined by experts.

Table 2.6 lists the top 10 ICOs in the Infrastructure category. Nearly all of these projects were performed in 2017. Half of them performed an exchange listing, but, as we can see, the current token price of these projects does not exceed the token sale price (except for the tokens of the Aeternity project). For example, the tokens of the Bancor project could be purchased for approximately $3.86 (0.01 ETH) during the token sale, while the current token price on the cryptocurrency exchange is $2, i.e. token performance equals 0.52x. Total market capitalization of Bancor tokens as of October 22, 2017, equaled $76,533,532.

Figure 2.3. Top 10 ICOs in terms of the amount of funds collected, Infrastructure category

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-2-3

Second, third, and fourth place in last week’s rating belong to projects from the categories: Payments (Request Network and Change ICOs, with $33.3 and $15.7 million collected) and Data Storage (DOVU ICO, with $2.6 million collected).

The ratings of the ICO projects in these categories are given below.

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

Name of ICOCategoryCollected, $ millionDateToken performance
1TenXPayments64.0June 24, 20172.17x
2MonethaPayments36.6August 31, 20170.47x
3Request NetworkPayments*33.3October 16, 20170.77x
4DomRaiderPayments31.0October 11, 2017n/a
5MonacoPayments26.6June 18, 20172.82x
6OmiseGoPayments25.0July 5, 201723.43x
7Centra TechPayments18.5August 25, 20170.74x
8ChangePayments*15.7October 16, 2017n/a
9TokenCardPayments12.7May 2, 20172.28x
10PlutusPayments1.0June 30, 20166.58x

* The category was established based on expert opinions.

At present, the Token Performance indicator for all top 10 projects in the Payments category ranges between 0.47x and 23.43x. The exchange listing of the OmiseGo ICO can be considered one of the most successful projects, as the ratio of Current Token Price to Token Sale Price ratio of this project is 23.43x. When considering this indicator, it is important to remember that the OmiseGo ICO ended on July 5, 2017, i.e. the token performance grew 23.43 times over the course of approximately three months.

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

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-2-4

Table 2.8. Top 4 ICOs in terms of the amount of funds collected, Data Storage category

Name of ICOCategoryCollected, $ millionDateToken performance
1FilecoinData Storage257.0September 7, 2017n/a
2StorjData Storage29.2May 25, 20170.65x
3DOVUData Storage*2.6October 17, 2017n/a
4Databroker DAOData Storage*0.3October 16, 2017n/a

* The category was established based on expert opinions.

Table 2.8 shows the top 4 ICOs in the Data Storage category. One of the projects mentioned in this category, the Storj ICO, has already performed its exchange listing. This project has a Current Token Price to Token Sale Price ratio of 0.65x.

Figure 2.5. Top 4 ICOs in terms of the amount of funds collected, Data Storage category

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-2-5

Table 2.9. Top 10 ICOs in terms of the amount of funds collected, Gaming & VR category

Name of ICOCategoryCollected, $ millionDateToken performance
1MobileGOGaming & VR53.1May 24, 20170.52x
2DecentralandGaming & VR26.2August 17, 20170.33x
3DMarketGaming & VR10.9August 21, 2017n/a
4Enjin Pre-SaleGaming & VR10.8September 18, 2017n/a
5GameCoinGaming & VR8.9September 29, 2017n/a
6NEVERDIE & TELEPORTGaming & VR6.1August 31, 2017n/a
7FirstBloodGaming & VR5.5September 25, 20164.12x
8Reality ClashGaming & VR2.5September 29, 2017n/a
9GimliGaming & VR*1.3October 21, 2017n/a
10AugmentorsGaming & VR1.1February 28, 201724.05x

* The category was established based on expert opinions.

Table 2.9 shows the top 10 ICOs in the Gaming & VR category. Only the tokens of four projects are currently being traded on the exchange. The exchange listing of the Augmentors ICO can be considered one of the most successful projects in this category, as its Current Token Price to Token Sale Price ratio is 24.05x.

Figure 2.6. Top 10 ICOs in terms of the amount of funds collected, Gaming & VR category

weekly-cryptocurrency-and-ico-market-analysis-october-16-22-2017-figure-2-6

Eight ICO projects were successfully completed over the past week (October 16-22, 2017), each of which collected more than $100,000, with a total amount of funds collected of at least $94.3 million. The week’s leader was the Electroneum project ($40 million). The total amount of funds collected by a number of ICOs failed to reach even the $100,000 mark (the information for some projects is still being finalized). Overall, project organizers collected $100 million less funds last week as they did in the second week of October. At least another 9 ICOs are planned to take place next week.

The Glossary is given in Annex 1.

Annex 1 – Glossary

Key termsDefinition
Initial coin offering, ICOA form of collective support of innovative technological projects, a type of presale and attracting of 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 asset 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, 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-minedA 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 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)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 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 assetsNumber 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 capitalizationAverage 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 saleAlternative 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 saleSimilar 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 indexThe 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) is calculated for the period from 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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