This report presents analysis of cryptocurrency market movements during 2018 with special attention paid to the trends seen over June 11-17, 2018.
Information as of June 18, 2018
This report was created by:
- Professor Dmitrii Kornilov, Doctor of Economics, Member of the Russian Academy of Natural Sciences, and Leading Analyst at ICOBox;
- Dima Zaitsev, PhD in Economics, Head of International Public Relations and Business Analytics Department Chief at ICOBox;
- Nick Evdokimov, Co-Founder of ICOBox;
- Mike Raitsyn, Vision Director of Snowfox Technology
- Anar Babaev, Co-Founder of ICOBox;
- Daria Generalova, Co-Founder of ICOBox
This report presents data on cryptocurrency market changes during 2018. Special emphasis has been placed on an analysis of the changes that have taken place in June 2018, including over the past week (June 11-17, 2018).
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, month)
Table 1.1. Trends in capitalization of the cryptocurrency market and main cryptocurrencies from March 1, 2018, to June 17, 2018*
|Parameter||1-Mar-18||1-Apr-18||MoM, %||1-May-18||MoM, %||1-Jun-18||MoM, %||3-Jun-18||DoD, %||10-Jun-18||DoD, %||17-Jun-18||DoD, %|
|1||Total market capitalization, USD billion||440.0||263.9||-40.0%||423.2||60.4%||331.3||-21.7%||343.6||3.7%||335.5||-2.3%||280.0||-16.5%|
|2||Altcoin market capitalization, USD billion||264.6||145.2||-45.1%||265.8||83.1%||203.2||-23.6%||213.3||5.0%||207.4||-2.8%||168.2||-18.9%|
|Altcoin dominance, %||60.1%||55.0%||–||62.8%||–||61.3%||–||62.1%||–||61.8%||–||60.1%||–|
|3||Bitcoin price, $||10 385.0||7 003.1||-32.6%||9 251.5||32.1%||7 500.7||-18.9%||7 632.1||1.8%||7 499.6||-1.7%||6 545.5||-12.7%|
|Bitcoin market capitalization, USD billion||175.4||118.7||-32.3%||157.4||32.6%||128.0||-18.6%||130.3||1.8%||128.1||-1.7%||111.9||-12.7%|
|Bitcoin dominance, %||39.9%||45.0%||–||37.2%||–||38.6%||–||37.9%||–||38.2%||–||40.0%||–|
|4||Ethereum price, $||856.0||397.3||-53.6%||670.5||68.8%||578.7||-13.7%||591.3||2.2%||594.4||0.5%||499.5||-16.0%|
|Ethereum market capitalization, USD billion||83.8||39.1||-53.3%||66.5||69.8%||57.7||-13.1%||59.0||2.2%||59.4||0.7%||50.0||-15.8%|
|Ethereum dominance, %||19.0%||14.8%||–||15.7%||–||17.4%||–||17.2%||–||17.7%||–||17.9%||–|
|5||Bitcoin Cash price, $||1 204.8||688.0||-42.9%||1 348.6||96.0%||995.7||-26.2%||1 083.1||8.8%||1 087.5||0.4%||853.1||-21.6%|
|Bitcoin Cash market capitalization, USD billion||20.5||11.7||-42.7%||23.1||96.6%||17.1||-25.9%||18.6||8.8%||18.7||0.5%||14.7||-21.5%|
|Bitcoin Cash dominance, %||4.7%||4.4%||–||5.5%||–||5.2%||–||5.4%||–||5.6%||–||5.2%||–|
|6||Litecoin price, $||203.1||116.9||-42.4%||148.3||26.9%||118.0||-20.4%||123.3||4.5%||117.6||-4.6%||97.7||-16.9%|
|Litecoin market capitalization, USD billion||11.3||6.5||-42.0%||8.4||27.9%||6.7||-19.8%||7.0||4.5%||6.7||-4.5%||5.6||-16.7%|
|Litecoin dominance, %||2.6%||2.5%||–||2.0%||–||2.0%||–||2.0%||–||2.0%||–||2.0%||–|
|7||Volume (24h) 4 crypto, USD billion||10.1||6.4||-36.9%||11.8||84.2%||7.7||-35.0%||7.9||2.4%||9.3||18.3%||4.8||-48.1%|
|Market cap 4 crypto, USD billion||315.1||189.7||-39.8%||279.7||47.5%||226.9||-18.9%||233.2||2.8%||232.1||-0.4%||197.6||-14.9%|
|ZAK-4 Crypto index**||3.2%||3.4%||–||4.2%||–||3.4%||–||3.4%||–||4.0%||–||2.4%||–|
|4 crypto dominance, %||71.6%||71.9%||–||66.1%||–||68.5%||–||67.9%||–||69.2%||–||70.6%||–|
|8||Volume (24h) 8 crypto, USD billion||11.3||7.2||-36.3%||16.0||121.3%||9.2||-42.4%||10.0||8.5%||12.2||22.1%||5.6||-54.4%|
|Market cap 8 crypto, USD billion||349.3||208.7||-40.2%||319.5||53.1%||255.9||-19.9%||264.9||3.5%||261.9||-1.1%||221.3||-15.5%|
|ZAK-8 Crypto index***||3.2%||3.5%||–||5.0%||–||3.6%||–||3.8%||–||4.7%||–||2.5%||–|
|8 crypto dominance, %||79.4%||79.1%||–||75.5%||–||77.2%||–||77.1%||–||78.1%||–||79.0%||–|
* Data as of June 17, 2018 (all figures calculated at 03:00 UTC)
** Since December 1, 2017, the ZAK-4 index has been calculated using the cryptocurrencies Bitcoin, Ethereum, Ripple, and Bitcoin Cash.
*** When calculating the ZAK-8 index, the cryptocurrencies with the largest capitalization are used. At present (June 17, 2018), the cryptocurrencies Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, Stellar, and EOS are used to calculate the ZAK-8 index.
Data source: coinmarketcap.com
When analyzing cryptocurrency market trends, the period from June 10-17, 2018, is used, while the calendar week (June 11-17, 2018) is used for the news overview and the analysis of the ICO market.
Over the analyzed period (June 10-17, 2018) cryptocurrency market capitalization decreased by $55.5 billion, and as of 03:00 UTC on June 17 equaled $280 billion (see Table 1.1). Overall, the fall since the start of the month has equaled around $50 billion.
The dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on June 17, 2018, equaled 70.6% and 79%, respectively, with bitcoin dominance increasing to 40% (see Table 1.1). Despite the overall reduction in cryptocurrency market capitalization, considerable growth was seen last week in the prices of certain cryptocurrencies from the third echelon by capitalization (top 500), such as GINcoin (+69.33%), Docademic (+56.89%), U.CASH (+35.71%), DubaiCoin (+32.36%), Karma (+32.35%) and others.
During the period (June 10-17, 2018) cryptocurrency market capitalization fluctuated from $335 billion (max) to $264.2 billion (min) (Fig. 1a), i.e. within a range of $70.8 billion. For its part, bitcoin capitalization fluctuated from $128.1 billion (max) to $107.6 billion (min), i.e. within a range of $20.5 billion.
As noted before, there has been a very high correlation between the capitalization of the cryptocurrency market as a whole (Fig. 1a) and bitcoin for more than a month, and the past week was not exception (see Fig. 1b). The maximum and minimum points and the overall configuration of the cryptocurrency market capitalization charts show an almost complete correspondence.
Figure 1a. Cryptocurrency market capitalization since June 10, 2018
Data source: coinmarketcap.com
Figure 1b shows bitcoin capitalization (red line) imposed on cryptocurrency market capitalization (blue line). The lines are practically identical.
Figure 1b. Capitalization of the cryptocurrency market (blue) and bitcoin (red) since June 10, 2018
Data source: coinmarketcap.com
During the analyzed period (June 10-17, 2018), overall cryptocurrency market capitalization dropped by 16.5% (or approximately $55.5 billion), with the largest market falls taking place on June 10 and 13, 2018 (see Fig. 1b, Table 1.1). The sharp decline in capitalization on June 10, 2018, can be partially explained by two events: the hacker attack on Coinrail (June 10, 2018), which cost the cryptoexchange $37 million, and the demand for data on transactions on major cryptocurrency exchanges (Coinbase, Kraken, Bitstamp and itBit) made the day before by the US Securities and Exchange Commission (June 8, 2018).
The rise and fall of cryptocurrency prices over the past seven days (June 10-17, 2018)
During the period from June 10-17, 2018, the change in the prices of cryptocurrencies in the top 500 ranged from -51.93% (WaykiChain) to +69.33% (GINcoin). The favorable news for the price of GINcoin this week was its listing on a new cryptoexchange (Twitter). The price of WaykiChain fell in line with market trends, but the amplitude of its fall was larger.
The price of only 26 cryptocurrencies and digital assets from the top 500 showed growth, including only three from the top 100.
Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion contracted from 22 to 18, with Binance Coin being the only one to show a price increase (+5.94%). All the other coins showed a downward adjustment: NEO (-22.56%), IOTA (-21.87%), TRON (-20.76%), EOS (-20.19%), etc.
The coins and tokens from the top 200 that demonstrated the largest price growth are given in Fig. 2.
Biggest gainers and losers over the week (June 10-17, 2018)
The prices of some cryptocurrencies may fluctuate from -50% to +50% over the course of a single day. Therefore, when analyzing cryptocurrency price trends, it is advisable to use their average daily amounts on various cryptoexchanges.
Below we consider the 10 cryptocurrencies that demonstrated the most significant change in price over the past week (Fig. 2-3). In this regard, only those coins and tokens included in the top 200 (Fig. 2) and top 100 (Fig. 3) in terms of market capitalization (according to the data of coinmarketcap.com) were considered.
Figure 2. Largest growth in prices over the past week
Data source: coinmarketcap.com
The change in price was calculated based on average daily data
Tables 1.2 and 1.3 show the possible factors or events that might have influenced the fluctuation in prices for certain cryptocurrencies. Table 1.4 shows the possible factors or events that might have influenced the cryptocurrency market in general.
Table 1.2. Factors or events that might have led to a growth in cryptocurrency prices over the past week
|№||Coins and tokens||Symbol||Price growth over the week, %||Average price in $ on June 17, 2018||Market capitalization, USD billion||Factors or events that might have led to a growth in cryptocurrency prices over the past week|
|1||Docademic||MTC||56.89%||$0.289959||0.08||The Docademic price increased sharply this week despite the fall in the market thanks to the positive statements of John McAfee on this project (Twitter)
The other cryptocurrencies did not experience any major jump in prices this week.
Game.com (GTC) is a digital token created to act as a means of payment of app purchases on the Game.com platform.
Binance Coin (BNB) is a digital token created by the Binance exchange for the provision of the best trading terms.
Emercoin (EMC) is a fully decentralized cryptocurrency that uses two methods of protection in its work: Proof of Work and Proof of Stake
eosDAC is a digital token that is part of the EOS network under development.
Trade.io represents an innovative blockchain-based trading platform.
Decentraland will create a virtual reality platform where users will become the main owners, creators, and players.
TRUE USD is a digital currency that is 100% backed by the US dollar. This means that the cost of one TUSD equals USD 1.
DAI is the first project developed on the Maker platform, and is a stable virtual currency, or so-called stablecoin.
Tether is the first company in the world to create a platform that combines the functions of cryptocurrencies and fiat.
The last three cryptocurrencies in Table 1.2 are tied to the US dollar, and their prices are relatively stable and equal $1. This is one way to maintain the value of assets during a crisis on the cryptocurrency market and a fall in the prices of most cryptocurrencies. In particular, since the start of the year the capitalization of Tether has nearly doubled, from $1.4 billion to $2.6 billion.
A depreciation in price was seen last week for 474 coins and tokens from the top 500 cryptocurrencies and digital assets by capitalization. The ten cryptocurrencies from the top 100 that experienced the most noticeable drops in price are shown in Fig. 3 and Table 1.3.
Figure 3. Largest fall in prices over the past week
Table 1.3. Factors or events that might have led to a fall in cryptocurrency prices over the past week
|№||Coins and tokens||Symbol||Fall in price over the week, %||Average price in $ on June 17, 2018||Market capitalization, USD billion||Factors or events that might have led to a fall in cryptocurrency prices over the past week|
|1||WaykiChain||WICC||-51.93%||$0.794416||0.14||This was a bad week for all cryptocurrencies, as bitcoin dragged all the altcoins down after it. The price of most cryptocurrencies fell.
WaykiChain is a new digital currency that has set itself the goal of helping business to build and develop new business models.
Skycoin is a digital currency created using the bitcoin source code that wants to resolve all the problems with digital gold.
Cortex (CTXC) is a digital token that is part of a blockchain platform for artificial intelligence.
Qash (QASH) is a specially created digital currency that will be used as a means of payment on the Liquid platform.
Polymath is a digital token for a platform that wants to create a single platform for trading in blockchain security tokens.
Maker is a digital token created for the Ethereum platform of the Maker project, the main goal of which is to create a line of decentralized digital assets that would be tied to the value of underlying instruments such as currency, gold, etc.
Syscoin is a decentralized digital currency created in 2014 that the community has yet to give its due.
Nuls is the digital token of a multi-blockchain platform that offers a unique solution for integration of the activity of enterprises on blockchain.
Nano (NANO) is a decentralized site that does not offer users any functions other than monetary functions.
Data source: coinmarketcap.com
The change in price was calculated based on average daily data
Table 1.4 shows events that took place from June 11-17, 2018, that had an impact on both the prices of the dominant cryptocurrencies and the market in general, with an indication of their nature and type of impact.
Table 1.4. Key events of the week having an influence on cryptocurrency prices, June 11-17, 2018
|№||Factors and events
(link to source)
|Date of news||Description||Nature of impact||Type of impact|
|1.||Bitcoin Falls Below $7000 [source: Coinmarketcap]||June 11, 2018||Over the course of one day the first cryptocurrency lost around 7%.||Market ⇓||Unfavorable|
|2.||Thailand Unveils New Crypto Laws, Legalizes 7 Cryptocurrencies [source: Blokt]||June 11, 2018||The legalized cryptocurrencies include bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin, Ripple, and Stellar.||Market ⇑||Favorable|
|3.||South Korea to Regulate Cryptocurrency Exchanges Just Like Commercial Banks [source: Coinspeaker]||June 12, 2018||The regulator has proposed a new draft law with stricter requirements on financial institutions.||Market||Uncertain|
|4.||UK Financial Watchdog Tells Banks to ‘Enhance Scrutiny’ on Crypto Clients [source: CCN]||June 12, 2018||The FCA recommends more careful consideration of clients and increased crypto literacy for bank employees.||Market ⇓||Unfavorable|
|5.||South Korea to Develop ‘Crypto Beach’, Modelled After Switzerland’s ‘Crypto Valley’ [source: Cointelegraph]||June 14, 2018||South Korea plans to collect blockchain enterprises in one place, as was done in the Crypto Valley in Switzerland. According to the initiators, the creation of favorable terms inside the country could give the South Korean crypto sector a boost in development.||Market ⇑||Favorable|
To analyze trading activity on cryptocurrency exchanges, the ZAK-n Crypto index is calculated (see the Glossary). The values of the ZAK-4 Crypto and ZAK-8 Crypto indices are presented in Tables 1.1, 1.5.a, and 1.5.b. In June the 24-hour trading volumes (Volume 24h) for the four dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple) equaled from $4.8 billion to $9.3 billion (Table 1.5.a). The value of the daily ZAK-4 Crypto ranged from 2.4% to 4.4% of capitalization. The highest trading volume was seen on June 14.
Table 1.5.a. Daily ZAK-4 Crypto index calculation (from June 1-17, 2018)
|Crypto||Bitcoin (BTC)||Ethereum (ETH)||Bitcoin Cash (BCH)||Ripple (XRP)||4 Crypto|
|Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Volume (24h) 4 crypto||Market cap 4 crypto||ZAK-4 crypto index|
|Date*||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||USD billion||USD billion||%|
|Jun 17, 2018||6 546||3.1||111.9||499||1.3||50.0||853||0.3||14.7||0.54||0.2||21.0||4.8||197.6||2.4%|
|Jun 16, 2018||6 455||3.2||110.4||490||1.3||49.1||847||0.3||14.6||0.54||0.2||21.1||5.0||195.1||2.6%|
|Jun 15, 2018||6 674||4.0||114.1||520||1.8||52.1||896||0.4||15.4||0.56||0.2||22.0||6.4||203.6||3.1%|
|Jun 14, 2018||6 343||5.1||108.4||478||2.5||47.9||844||0.5||14.5||0.54||0.4||21.0||8.5||191.8||4.4%|
|Jun 13, 2018||6 597||5.1||112.7||498||2.1||49.8||877||0.5||15.1||0.56||0.4||22.1||8.0||199.7||4.0%|
|Jun 12, 2018||6 906||4.7||118.0||533||1.9||53.3||957||0.5||16.4||0.60||0.3||23.6||7.4||211.4||3.5%|
|Jun 11, 2018||6 799||4.7||116.2||525||2.0||52.5||938||0.6||16.1||0.59||0.3||23.0||7.7||207.8||3.7%|
|Jun 10, 2018||7 500||5.8||128.1||594||2.2||59.4||1 087||0.8||18.7||0.66||0.5||25.9||9.3||232.1||4.0%|
|Jun 9, 2018||7 633||3.8||130.4||601||1.5||60.1||1 117||0.4||19.2||0.67||0.2||26.5||5.9||236.1||2.5%|
|Jun 8, 2018||7 685||4.2||131.3||605||1.6||60.5||1 145||0.5||19.7||0.68||0.2||26.6||6.6||238.0||2.8%|
|Jun 7, 2018||7 651||4.5||130.7||608||1.9||60.7||1 135||0.6||19.5||0.68||0.2||26.5||7.2||237.4||3.0%|
|Jun 6, 2018||7 626||4.7||130.2||610||1.8||61.0||1 157||0.6||19.9||0.68||0.3||26.6||7.3||237.7||3.1%|
|Jun 5, 2018||7 501||5.0||128.1||593||1.8||59.3||1 110||0.7||19.1||0.66||0.4||26.0||7.9||232.4||3.4%|
|Jun 4, 2018||7 723||5.0||131.8||619||1.9||61.9||1 171||0.9||20.1||0.69||0.6||27.2||8.4||241.0||3.5%|
|Jun 3, 2018||7 632||4.9||130.3||591||1.8||59.0||1 083||0.8||18.6||0.64||0.3||25.2||7.9||233.2||3.4%|
|Jun 2, 2018||7 537||4.9||128.6||580||1.9||57.9||1 003||0.7||17.2||0.62||0.3||24.5||7.8||228.3||3.4%|
|Jun 1, 2018||7 501||4.9||128.0||579||1.9||57.7||996||0.5||17.1||0.61||0.3||24.0||7.7||226.9||3.4%|
All figures given as of 03:00 UTC of the corresponding day
Data source: coinmarketcap.com
The 24-hour trading volumes (Volume 24h) for the eight dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, EOS, and Cardano) decreased to $5.6 billion by the end of last week (Table 1.5.b), or 2.5% of their market capitalization. The ZAK-4 Crypto and ZAK-8 Crypto indices are considered in more detail in Tables 1.5.a and 1.5.b.
Table 1.5.b. Daily ZAK-8 Crypto index calculation (continuation of Table 1.5.а)
|Crypto||Stellar (XLM)||Cardano (ADA)||EOS (EOS)||Litecoin (LTC)||8 Crypto|
|Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Price Open||Volume (24h)||Market cap||Volume (24h)||Market cap||ZAK-8 crypto index|
|Date||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||$||USD billion||USD billion||USD billion||USD billion||%|
|Jun 17, 2018||0.23||0.03||4.3||0.163||0.04||4.2||10.6||0.43||9.5||98||0.24||5.6||5.6||221.3||2.5%|
|Jun 16, 2018||0.23||0.03||4.3||0.163||0.04||4.2||10.7||0.68||9.5||97||0.26||5.5||6.0||218.7||2.8%|
|Jun 15, 2018||0.24||0.04||4.5||0.172||0.07||4.5||11.3||0.94||10.1||101||0.29||5.8||7.7||228.4||3.4%|
|Jun 14, 2018||0.22||0.05||4.1||0.160||0.20||4.2||10.2||1.41||9.1||94||0.37||5.4||10.5||214.5||4.9%|
|Jun 13, 2018||0.23||0.05||4.3||0.166||0.10||4.3||10.3||1.27||9.2||101||0.36||5.7||9.8||223.3||4.4%|
|Jun 12, 2018||0.26||0.05||4.7||0.181||0.08||4.7||11.6||1.05||10.3||107||0.33||6.1||8.9||237.3||3.8%|
|Jun 11, 2018||0.25||0.05||4.6||0.176||0.09||4.6||11.3||1.57||10.1||107||0.33||6.1||9.7||233.1||4.2%|
|Jun 10, 2018||0.28||0.05||5.3||0.202||0.14||5.2||14.0||2.32||12.6||118||0.40||6.7||12.2||261.9||4.7%|
|Jun 9, 2018||0.29||0.04||5.3||0.205||0.05||5.3||14.0||1.18||12.6||120||0.24||6.8||7.5||266.2||2.8%|
|Jun 8, 2018||0.29||0.05||5.5||0.211||0.07||5.5||14.6||1.11||13.1||122||0.29||6.9||8.1||268.9||3.0%|
|Jun 7, 2018||0.30||0.05||5.5||0.216||0.08||5.6||14.0||1.02||12.5||121||0.37||6.9||8.7||268.0||3.2%|
|Jun 6, 2018||0.29||0.05||5.5||0.221||0.08||5.7||14.3||1.02||12.8||122||0.32||6.9||8.8||268.5||3.3%|
|Jun 5, 2018||0.29||0.05||5.4||0.214||0.12||5.6||13.6||1.45||12.2||120||0.30||6.8||9.8||262.3||3.7%|
|Jun 4, 2018||0.30||0.06||5.7||0.228||0.12||5.9||14.6||1.30||13.1||125||0.30||7.1||10.1||272.7||3.7%|
|Jun 3, 2018||0.30||0.06||5.5||0.228||0.12||5.9||14.8||1.63||13.3||123||0.32||7.0||10.0||264.9||3.8%|
|Jun 2, 2018||0.29||0.06||5.4||0.223||0.12||5.8||12.3||2.88||11.0||120||0.31||6.8||11.2||257.2||4.4%|
|Jun 1, 2018||0.30||0.06||5.5||0.225||0.13||5.8||12.3||1.06||11.0||118||0.29||6.7||9.2||255.9||3.6%|
Since May 22, Huobi, one of the largest cryptoexchanges, began issuing the new consolidated HUOBI 10 index, which shows the trends of 10 digital assets with a high market value and liquidity. The index equaled around 900 points (June 18, 2018, 20:00 UTC/GMT+3). We remind you that the base point of the HUOBI 10 is 1000.
Table 1.6 gives a list of events, information on which appeared last week, which could impact both the prices of specific cryptocurrencies and the market in general.
Table 1.6. Events that could have an influence on cryptocurrency prices in the future
|Factors and events
(link to source)
|Date of news||Description||Nature of impact||Type of impact|
|1.||Cointelegraph]||June 15, 2018||The technology is capable of limiting the supply of electricity and paying for it in cryptocurrency.||Market ⇑
|2.||Binance CEO: There Are ‘Definitely Questionable Volumes’ on Many Crypto Exchanges [source: Dailyhodl]||June 15, 2018||The head of the company talked about ways to inflate trading volumes and other dishonest practices, shared his observations concerning inflated trading volumes, and recognized that this is a fairly widespread phenomenon.||Market ⇓
1.2 Market trends
The weekly cryptocurrency and digital asset market trends from December 31, 2017, to June 17, 2018, are presented as graphs (Fig. 1.1-1.5).
Table 1.7. Legends and descriptions of the graphs
|Total cryptocurrency market capitalization, USD million||Fig. 1.1||This figure shows cryptocurrency and digital asset market capitalization trends from December 31, 2017.|
|The rate of market change (as a % to the beginning of 2017)||Fig. 1.1||This figure shows the % change in cryptocurrency and digital asset market capitalization compared to December 31, 2017.|
|Change in the market capitalization (in USD million compared to previous period)||Fig. 1.2||This figure shows the weekly change in USD million (increase or decrease) in cryptocurrency and digital asset market capitalization from December 31, 2017.|
|The rate of market change (as a % compared to the previous period)||Fig. 1.2||This figure shows the % of weekly change (increase or decrease) in cryptocurrency and digital asset market capitalization from December 31, 2017.|
|Number of cryptocurrencies and digital assets||Fig. 1.3||This figure shows the trends in the increase of the number of cryptocurrencies and digital assets circulating on cryptocurrency exchanges. On January 1, 2017, their number was 617, and as of June 17, 2018, this number had already reached 1,547 (coins and tokens on which there is information on capitalization and/or turnover were considered).|
|Average market capitalization, USD million||Fig. 1.3||This figure reflects the growth in the average cryptocurrency and digital asset market capitalization from December 31, 2017, i.e. the ratio between the market capitalization of all cryptocurrencies and digital assets and their number.|
|Forecast of total cryptocurrency market capitalization||Fig. 1.4, 1.5||This figure shows the time trend (forecast) change in cryptocurrency and digital asset market capitalization.|
* NB! Average daily data are given in the graphs below. For this reason, the figures in the graphs may differ from the data in Table 1.1, where all figures were calculated at 03:00 UTC.
These differences in the values may be significant during periods of high cryptocurrency market volatility.
Data source: coinmarketcap.com
Figure 1.1. Total cryptocurrency market capitalization (Q1 and Q2 2018)
*Average daily data(according to the data of coinmarketcap.com)
Figure 1.1 shows a graph of the weekly cryptocurrency market change from December 31, 2017, to June 17, 2018. Over this period, market capitalization dropped from $572.5 billion to $281.3 billion, i.e. by 51%. Last week (June 10-17, 2018) cryptocurrency market capitalization decreased from $324.2 billion to $281.3 billion (as of June 17, 2018, based on the average daily figures from coinmarketcap.com).
Figure 1.2. Change in market capitalization (Q1 and Q2 2018)
The market is susceptible to sudden and drastic fluctuations. During the first week of January, market capitalization increased by approximately $250 billion, or 44%. The largest weekly fall in the first quarter of 2018 equaled $136 billion, or 23%, during the period from January 28-February 4, 2018.
Nine of the thirteen weeks in the first quarter of 2018 were “in the red”, i.e. capitalization fell based on the results of each of these weeks. In the second quarter, the market grew over the first five weeks, followed by periods of downward adjustment. Over the past week (June 10-17, 2018) the market contracted by around 13%, or $42.3 billion (with due account of average daily data, see Fig. 1.2).
Figure 1.3. Number of cryptocurrencies and digital assets (Q1 and Q2 2018)
Data source: coinmarketcap.com (coins and tokens on which there is information on capitalization and/or turnover were considered)
Since December 31, 2017, the total number of cryptocurrencies and digital assets considered when calculating market capitalization has increased from 1,335 to 1,585. Over the past week their number decreased by 38, from 1,585 to 1,547, and average capitalization equaled $181.8 million. In total, over the past month 73 new coins and tokens have appeared on coinmarketcap.com. However, it should be noted that a number of other coins and tokens were also excluded from the list. From among the tokens that were added to coinmarketcap.com last week, Sentinel Protocol, XMax, and GoChain showed high trading volumes.
Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization
The latest cryptocurrency losses are connected with the hack of the South Korean Coinrail cryptoexchange (June 10, 2018). To date it has been confirmed that 70% of the reserve coins/tokens were kept secure. Some assets (tokens) have been frozen until the circumstances are clarified. The attack targeted the tokens of the Pundi X (NPXS), Aston (ATX), Dent (DENT), Tron (TRX), and other projects. Certain publications mention that the losses from the hacker attack equaled around KRW 40 billion. The Pundi X (NPXS) token was the hardest hit by the attack. Medium reports that the Pundi X project is indicating that they received a notification from Coinrail on unauthorized trading with 2,619,542,080 NPXS tokens, which were transferred to IDEX (this amount of NPXS tokens equals 3% of all NPXS available for trading, and is valued at approximately $20 million).
The Chinese cybersecurity company Qihoo 360 Netlab has announced that a group of hackers stole Ethereum worth more than $20 million from wallets and mining apps on the Ethereum platform (CoinDaily, June 12, 2018).
As we have written in previous reports, one of the most important tasks in the crypto industry is protecting digital assets from hacker attacks, theft, security breaches, and the possible loss of assets due to the appearance of scam projects and phishing websites.
The importance of developments in this area cannot be overstated.
Here are a few examples: in April 2018 a hacker attack took place on the well-known wallet MyEtherWallet, as a result of which The DAO users lost 12 million ETH in 2016; Mt.Gox – around 850,000 BTC; Bitfinex – $65 million in BTC; NiceHash – $70 million in BTC; Tether – $30 million in USDT; and finally, just recently, in 2018, Coincheck – $534 million in NEM. In total, in the first half of 2018, Cybersecurity Carbon Black estimated that the digital currency had been stolen for about $ 1.1 billion. All of this speaks to the fact that one of the most important tasks in the industry in the near future is to create reliable security technology for all types of cryptocurrency wallets, improving the social responsibility of ICO projects and cryptoexchanges (including decentralized ones), and creating a user-friendly interface for cryptocurrency management.
Annex – Glossary
|Market capitalization||Value of an asset calculated based on its current market (exchange) price. This economic indicator is used to assess the total aggregate value of market instruments, players, and markets. [Source: https://en.wikipedia.org].|
|Cryptocurrency market capitalization||The market value of an individual coin or token circulating on the market.|
|Total cryptocurrency market capitalization||The market capitalization of cryptocurrencies and digital assets, i.e. the aggregate market value of cryptocurrencies and digital assets (coins and tokens) circulating on the market.|
|Dominance||Market share, i.e. the ratio of market capitalization of a particular cryptocurrency (coin, token) to total cryptocurrency market capitalization. Expressed as a %.|
|A coin that is not mineable. The term is used for cryptocurrencies (coins, tokens) which cannot be mined or issued through mining.|
|Pre-mined||A pre-mined coin. The term is used for cryptocurrencies (coins, tokens) which are issued through mining, and a certain number of coins (tokens) have been created and distributed among certain users at the start of the project.|
|The rate of market increase (as a % compared to the beginning of the year)||The rate of market increase (as a % compared to the start of the year), i.e. by how many % points did market capitalization increase compared to the start of the year.|
|The growth rate of the market (as a % to the beginning of the year)||The rate of market growth (as a % compared to the start of the year), i.e. by how many times did market capitalization grow compared to the start of the year.|
|Increase in market capitalization (in USD million compared to the previous period)||Increase in cryptocurrency and digital asset market capitalization (in USD million compared to the previous period), i.e. by how many USD million did market capitalization increase over the period.|
|The rate of market increase (as a % compared to the previous period)||The rate of market increase (as a % compared to the previous period), i.e. by how many % points did market capitalization increase over the period.|
|The market growth rate (as a % compared to the previous period)||The market growth rate (as a % compared to the previous period), i.e. by how many times did market capitalization grow compared to the previous period.|
|Number of cryptocurrencies and digital assets||Number of cryptocurrencies and digital assets. At the beginning of 2018 over 1,300 cryptocurrencies and digital assets (coins and tokens) were circulating on the market.|
|Average market capitalization||Average market capitalization, i.e. the ratio of the market capitalization of all cryptocurrencies and digital assets to their number.|
|ZAK-n Crypto index||The index is calculated as a percentage and represents a ratio between the trading volume (transactions) on cryptocurrency exchanges per day (Volume 24h) for n dominant cryptocurrencies to their total market capitalization.
ZAK-4 Crypto index calculations include four dominant cryptocurrencies with the greatest market capitalization: Bitcoin, Ethereum, Bitcoin Cash, and Ripple.
ZAK-8 Crypto index calculations include the trading volume and market capitalization for eight cryptocurrencies.
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