This report presents data on the cryptocurrency market movements in 2018, with special attention paid to the analysis of changes taking place over August 2018, most notably August 6-12, 2018.

Information as of August 13, 2018

This report was created by:

This report presents data on cryptocurrency market changes during 2018. Special emphasis has been placed on an analysis of the changes that have taken place during August 2018, including over the past week (August 5-12, 2018).

1. General cryptocurrency and digital assets market analysis. Market trends

1.1 General cryptocurrency and digital assets market analysis

Table 1.1. Trends in capitalization of the cryptocurrency market and main cryptocurrencies from April 1, 2018, to August 12, 2018*

Parameter1-Apr-181-May-18MoM, %1-June-18MoM, %1-July-18MoM, %1-Aug-18DoD, %5-Aug-18DoD, %12-Aug-18DoD, %
1Total market capitalization, USD billion263.9423.260.4%331.3-21.7% 257.7-22.2% 277.87.8%253.8-8.6% 212.5-16.3%
2Altcoin market capitalization, USD billion145.2265.883.1%203.2-23.6%147.9-27.2%144.3-2.4%132.9-7.9%104.4-21.4%
Altcoin dominance, %55.0%62.8%61.3%57.4%51.9%52.4%49.1%
3Bitcoin price, $7 003.19 251.532.1%7 500.7-18.9% 6 411.7-14.5% 7 769.021.2%7 031.1-9.5% 6 283.7-10.6%
Bitcoin market capitalization, USD billion118.7157.432.6%128.0-18.6%109.8-14.2%133.521.6%120.9-9.5%108.1-10.6%
Bitcoin dominance, %45.0%37.2%38.6%42.6%48.1%47.6%50.9%
4Ethereum price, $397.3670.568.8%578.7-13.7% 455.2-21.3% 433.9-4.7% 407.4-6.1% 320.8-21.2%
Ethereum market capitalization, USD billion39.166.569.8%57.7-13.1%45.7-20.8%43.8-4.1%41.2-6.0%32.5-21.1%
Ethereum dominance, %14.8%15.7%17.4%17.7%15.8%16.2%15.3%
5Bitcoin Cash price, $688.01 348.696.0%995.7-26.2% 749.2-24.8% 780.04.1%696.1-10.8% 564.4-18.9%
Bitcoin Cash market capitalization, USD billion11.723.196.6%17.1-25.9%12.9-24.5%13.54.4%12.0-10.7%9.8-18.9%
Bitcoin Cash dominance, %4.4%5.5%5.2%5.0%4.8%4.7%4.6%
6Litecoin price, $116.9148.326.9%118.0-20.4% 81.5-30.9% 80.4-1.4% 73.4-8.7% 58.2-20.7%
Litecoin market capitalization, USD billion6.58.427.9%6.7-19.8%4.7-30.4%4.6-0.6%4.2-8.6%3.4-20.5%
Litecoin dominance, %2.5%2.0%2.0%1.8%1.7%1.7%1.6%
7Volume (24h) 4 crypto, USD billion**6.411.884.2%7.7-35.0%7.1-7.1%7.55.4%5.6-25.7%7.839.8%
Market cap 4 crypto, USD billion189.7279.747.5%226.9-18.9%186.7-17.7%207.911.4%190.9-8.2%162.2-15.1%
ZAK-4 Crypto index3.4%4.2%3.4%3.8%3.6%2.9%4.8%
4 crypto dominance, %71.9%66.1%68.5%72.4%74.8%75.2%76.3%
8Volume (24h) 8 crypto, USD billion**7.216.0121.3%9.2-42.4%8.2-10.5%8.75.2%6.4-25.9%8.836.8%
Market cap 8 crypto, USD billion208.7319.553.1%255.9-19.9%205.9-19.5%228.210.8%209.3-8.3%177.1-15.4%
ZAK-8 Crypto index3.5%5.0%3.6%4.0%3.8%3.1%5.0%
8 crypto dominance, %79.1%75.5%77.2%79.9%82.1%82.5%83.3%

* Data as of August 12, 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 (August 12, 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 August 5-12, 2018, is used, while the calendar week from August 6-12, 2018, is used for the news overview and the analysis of the ICO market.

Cryptocurrency market capitalization decreased over the analyzed period (August 5-12, 2018) and as of 03:00 UTC equaled $212.5 billion (see Table 1.1). Meanwhile, bitcoin dominance exceeded 50%. The market dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on August 12, 2018, equaled 76.3% and 83.3%, respectively, with bitcoin dominance rising to 50.9% (see Table 1.1).

Maximum bitcoin dominance in 2017 was 66.5% in early December, as a result of its headlong growth. In the end, its growth was a catalyst for the entire market. However, by mid-January 2018 bitcoin dominance had already fallen to 32%, which was the start of a protracted downward adjustment.

Starting in early May 2018 bitcoin dominance again began to rise, but this time against the backdrop of a falling market. All in all, bitcoin can unequivocally be called the “base asset” or “standard bearer” of the cryptocurrency market, whose price determines the direction of the movement of all other coins and tokens.

The drop in cryptocurrency market capitalization compared to the start of the month equaled around $65 billion, including a drop in bitcoin capitalization by $25 billion and altcoin capitalization by $40 billion.

During the period from August 5-12, 2018, cryptocurrency market capitalization fluctuated from $206.9 billion (min) to $260.1 billion (max) (Fig. 1a), i.e. within a range of $60 billion. For its part, bitcoin capitalization fluctuated from $105.2 billion (min) to $123.2 billion (max), i.e. within a range of $18 billion.

Figure 1a. Cryptocurrency market capitalization since August 5, 2018

Data source: coinmarketcap.com

Figure 1b shows bitcoin capitalization (red line) superimposed on cryptocurrency market capitalization (blue line). The lines are practically identical, but more intensive growth in bitcoin can be seen compared to overall market capitalization. Ultimately, over the past week bitcoin dominance increased by 3.3%, from 47.6% to 50.9% (see Table 1.1).

Figure 1b. Capitalization of the cryptocurrency market (blue) and bitcoin (red) since August 5, 2018

Data source: coinmarketcap.com

A clear downward trend can be seen on August 8. What could be causing the fall in capitalization?

As reported by coindesk, according to information officially published on August 7 the US Securities and Exchange Commission (SEC) delayed a decision on the VanEck-SolidX Bitcoin ETF until autumn. This information once again had an influence on cryptocurrency prices, with capitalization plunging by approximately $35 billion in one day (August 8) (Fig. 1a, 1b). We note that the SEC had previously rejected all applications on the issue of bitcoin ETFs. In response to the application of the Chicago Board Options Exchange (CBOE Global Markets), the SEC asked for comments. In our report dated July 30, we considered the impact of the previous two (1, 2) official announcements of the SEC. The first dated July 24 states that the adoption of decisions on the five applications on the issue of bitcoin ETFs submitted by Direxion had been postponed until September 21. In the second announcement dated July 26, the SEC rejected for the second time the application of the brothers Cameron and Tyler Winklevoss (Bats BZX Exchange, Inc. (“BZX”)) on the creation of a bitcoin exchange traded fund (Winklevoss Bitcoin Trust).

The rise and fall of cryptocurrency prices over the past seven days (August 5-12, 2018)

Last week’s leaders from among the top 500 cryptocurrencies by capitalization, which showed an appreciation of more than 100%, were the projects InflationCoin (+312.5%) and Global Currency Reserve (+126.1%). The growth of LoyalCoin (+55.14%), CashBet Coin (+51.37%), and MobileGo (+49.84%) should also be noted.

During the period from August 5-12, 2018, the change in the prices of cryptocurrencies in the top 500 ranged from -55% (Seele) to +312.5% (InflationCoin). The growth leader during this week was InflationCoin, the price of which appreciated by 312%. However, this price growth could be nothing more than the result of market manipulation, since the average 24-hour trading volume of this coin equals a mere $2,000. Seele experienced a large drop in price. This token has been undergoing a downward adjustment since mid-July, when the price reached its peak after a period of rapid growth.

Only 49 cryptocurrencies and digital assets from the top 500 showed growth, including 4 from the top 100 (not including Tether and TrueUSD).

Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion fell from 18 to 16, with the price of all of them decreasing except Tether (its price is tied to the US dollar). The depreciation in prices equaled: IOTA (-40.74%), NEO (-29.52%), XRP (-28.9%), EOS (-27.36%), 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 (August 5-12, 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) by market capitalization 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 tokensSymbolPrice growth over the week, %Average price in $ on August 12, 2018Market capitalization, USD billionFactors or events that might have led to a growth in cryptocurrency prices over the past week
1LoyalCoinLYL55.14%$0.0054780.03The main event influencing the price of LoyalCoin this week was the release of its own wallet (Twitter) It is available for download in App Store and Google Play.

The key positive news item of the week for DAEX, which led to the increase in its price, was its partnership with tokenomy and its listing on six cryptoexchanges (including LBank) (Twitter)

The price of Litecoin Cash increased on the back of news on its partnership with the American College of Academic International Medicine (Twitter)

Namecoin and Peercoin, a couple of the oldest cryptocurrencies, also appreciated this week despite the fact that there were no decidedly positive news items concerning these cryptocurrencies other than the upgrade of the Peercoin wallet (Twitter)

The price of Holo increased after the latest AMA with Matthew Schutte (Twitter). Previously (July 24, 2018) Holo was listed on Binance.

The fluctuation in the prices of the other cryptocurrencies can be explained by volatility.
U.CASH is a brand new token that will be used as a means of payment on the eponymous exchange.

Iconomi is the digital coin of a blockchain-based digital asset management platform.

The FuzeX project would like to make digital assets as convenient and simple to use as fiat currencies. Put simply, the project is developing a smart card with which a user can unite his or her own bank cards.

ChainLink is a digital token of the platform of the same name, the purpose of which is to apply smart contract technology in the existing financial system.

2DAEXDAX43.26%$0.0755460.03
3Litecoin CashLCC36.57%$0.0407650.02
4NamecoinNMC35.39%$2.160.03
5PeercoinPPC29.57%$1.830.05
6HoloHOT17.40%$0.0006550.09
7U.CASHUCASH13.73%$0.0031830.03
8IconomiICN10.07%$0.5953030.06
9FuzeXFXT9.14%$0.0435490.03
10ChainLinkLINK8.10%$0.2678160.09

 

A depreciation in price was seen last week for 451 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 tokensSymbolFall in price over the week, %Average price in $ on August 12, 2018Market capitalization, USD billionFactors or events that might have led to a fall in cryptocurrency prices over the past week
1IOTAMIOTA-40.74%$0.5363231.49One of the major cryptocurrencies, IOTA, took the largest fall this week. The price dropped against the backdrop of the scandal involving the founders of the cryptocurrency (cointelegraph.com).

The other cryptocurrencies that depreciated within the limit of 35% were following the negative market trend, and fell in price on the heels of bitcoin.
Ontology is a multitier network that makes it possible for internal companies to interact with decentralized apps created on the NEO, Ethereum, EOS and other platforms.

Nebulas holds 66th place in the rating by capitalization and is the token of a platform for the search for necessary information among blockchain projects.

The purpose of the Bytom project is to bring the real world into the digital world and to tokenize all assets in the real sector.

Zilliqa is a platform for the creation of decentralized apps that differs from its competitors in the high throughput capacity of its network.

Loopring is the digital token of a site for trading in tools produced on the Ethereum platform and other tools that use the ERC20 protocol.

Aeternity is a decentralized platform that will be distinguished by its transaction throughput capacity, smart contracts, and set of oracles.

Mixin is a messenger that can be used for the transfer of all cryptocurrencies using end-to-end encryption, thereby offering the simplest way into the world of blockchain.

GXChain (previously GXShares) is a blockchain-based decentralized data exchange, designed to create a bridge between sources of data issued on various platforms and to perform data exchange between peer-to-peer companies and all organizations and agencies.

VeChain is a very volatile digital token of the eponymous blockchain-based VeChain platform, which is a global site for data conversion. You will recall that on July 23, 2018, the VeChain team converted ERC-20 standard VEN tokens into new VET tokens at a rate of 1:100. The owners of the new VET tokens will receive rewards in the form of VeThor.

 

2OntologyONT-35.42%$1.460.22
3NebulasNAS-34.45%$1.430.07
4BytomBTM-33.45%$0.1807880.18
5ZilliqaZIL-32.60%$0.0380150.29
6LoopringLRC-31.86%$0.1147190.07
7AeternityAE-31.61%$1.150.27
8MixinXIN-31.57%$249.750.11
9GXChainGXS-30.23% $1.640.10
10VeChainVET-29.92%$0.0092810.51

Data source: coinmarketcap.com
The change in price was calculated based on average daily data

Table 1.4 shows events that took place from August 6-12, 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, August 6-12, 2018

Factors and events

(link to source)

Date of newsDescriptionNature of impactType of impact
1.                    Japan’s Licensed Crypto Exchanges Formally Apply for Self-Regulatory Body [source: ccn.com]August 7, 2018An association of Japanese cryptoexchanges may receive a new status. This will allow it to establish rules for working in this area in the country.Market ⇑

 

Favorable
2.                    SEC Delays VanEck-SolidX Bitcoin ETF Decision to September [source: coindesk.com]August 7, 2018There will be a bitcoin ETF, only later: the American regulator has postponed the consideration of applications from two New York-based companies. Sources had previously said that the application would probably be approved.Market ⇓Unfavorable
3.                    The Bitcoin Price Has Fallen to $6,500 [source: coinmarketcap.com]August 7, 2018 

 

Market ⇓Unfavorable
4.                    Microsoft Introduces Ethereum Proof-of-Authority Algorithm on Azure [source: cointelegraph.com]August 8, 2018The new Microsoft product is intended for corporate networks, so the developers decided not to use the Proof-of-Work algorithm.Market ⇑

 

Favorable
5.                    Iran Turns to Cryptocurrency to Blunt US Sanctions [source: cryptoblockwire.com]August 9, 2018The government of the Republic is currently actively developing the mechanism for launching digital currencies and implementing them in the country’s economy. The project is being performed together with the Central Bank and will represent the country’s response to American sanctions, which will enter into force next month.Market ⇑

 

Favorable
6.                    IBM and Maersk Announce the Global Launch of TradeLens Blockchain Platform [source: Coinspeaker]August 10, 2018Trading partners could use this decision for cooperation and overall transaction management without any loss of confidentiality.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 August the 24-hour trading volumes (Volume 24h) for the four dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple) equaled from $5.6 billion to $7.8 billion (Table 1.5.a). The value of the daily ZAK-4 Crypto ranged from 2.9% to 4.8% of capitalization. The highest trading volume was seen on August 12.

Table 1.5.a. Daily ZAK-4 Crypto index calculation (from August 1-12, 2018)

CryptoBitcoin (BTC)Ethereum (ETH)Bitcoin Cash (BCH)Ripple (XRP)4 Crypto
 Price Open Volume (24h)*Market capPrice Open Volume (24h)*Market capPrice OpenVolume (24h)*Market capPrice OpenVolume (24h)*Market capVolume (24h) 4 crypto*Market cap 4 cryptoZAK-4 Crypto index
Date**$USD billionUSD billion$USD billionUSD billion$USD billionUSD billion$USD billionUSD billionUSD billionUSD billion%
Aug 12, 20186 284 5.7 108.1 321 1.6 32.5 564 0.3 9.8 0.300.2 11.8 7.8 162.2 4.8%
Aug 11, 20186 186 4.0 106.4 334 1.8 33.8 572 0.3 9.9 0.320.3 12.6 6.5 162.8 4.0%
Aug 10, 20186 571 4.5 113.0 366 1.7 37.0 610 0.3 10.5 0.350.2 13.6 6.8 174.2 3.9%
Aug 9, 20186 306 4.3 108.4 357 1.6 36.1 591 0.4 10.2 0.330.3 13.1 6.6 167.9 3.9%
Aug 8, 20186 747 5.1 116.0 380 2.0 38.4 660 0.5 11.4 0.380.4 15.0 7.9 180.8 4.4%
Aug 7, 20186 958 4.7 119.6 407 1.8 41.2 693 0.4 12.0 0.410.2 16.3 7.1 189.0 3.8%
Aug 6, 20187 063 3.9 121.4 411 1.4 41.5 711 0.3 12.3 0.430.2 17.1 5.9 192.3 3.1%
Aug 5, 20187 031 3.7 120.9 407 1.4 41.2 696 0.3 12.0 0.430.2 16.8 5.6 190.9 2.9%
Aug 4, 20187 439 4.3 127.9 418 1.5 42.3 723 0.3 12.5 0.440.2 17.3 6.2 200.0 3.1%
Aug 3, 20187 562 4.6 130.0 413 1.7 41.7 733 0.4 12.7 0.430.3 16.9 7.0 201.2 3.5%
Aug 2, 20187 634 4.2 131.2 421 1.6 42.5 768 0.4 13.3 0.450.2 17.6 6.4 204.5 3.1%
Aug 1, 20187 769 4.8 133.5 434 1.9 43.8 780 0.5 13.5 0.440.3 17.1 7.5 207.9 3.6%

* Adjusted Volume – Volume from spot markets excluding markets with no fees and transaction mining
** All figures given as of 03:00 UTC of the corresponding day
Data source: coinmarketcap.com

By the end of the week the 24-hour trading volumes (Volume 24h) for the eight dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, EOS, and Cardano) equaled $8.8 billion (Table 1.5.b), or 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)

CryptoStellar (XLM)Cardano (ADA)EOS (EOS)Litecoin (LTC)8 Crypto
 Price Open Volume (24h)*Market capPrice Open Volume (24h)*Market capPrice OpenVolume (24h)*Market capPrice OpenVolume (24h)*Market capVolume (24h) 4 crypto*Market cap 4 cryptoZAK-4 Crypto index
Date**$USD billionUSD billion$USD billionUSD billion$USD billionUSD billion$USD billionUSD billionUSD billionUSD billion%
Aug 12, 20180.220.07 4.1 0.1120.042.9 5.00.604.6 580.283.4 8.8 177.1 5.0%
Aug 11, 20180.220.09 4.2 0.1160.073.0 5.30.654.8 590.263.4 7.5 178.2 4.2%
Aug 10, 20180.220.11 4.2 0.1240.073.2 5.80.775.3 640.263.7 8.0 190.5 4.2%
Aug 9, 20180.200.08 3.8 0.1150.093.0 5.60.715.1 620.273.6 7.7 183.3 4.2%
Aug 8, 20180.230.07 4.3 0.1260.083.3 6.60.896.0 680.313.9 9.2 198.3 4.7%
Aug 7, 20180.230.06 4.4 0.1310.063.4 7.10.576.4 740.304.3 8.1 207.5 3.9%
Aug 6, 20180.250.05 4.6 0.1310.063.4 7.10.486.4 750.274.3 6.7 211.0 3.2%
Aug 5, 20180.240.05 4.5 0.1270.043.3 7.00.486.3 730.274.2 6.4 209.3 3.1%
Aug 4, 20180.260.06 4.8 0.1310.053.4 7.20.476.5 770.264.5 7.1 219.2 3.2%
Aug 3, 20180.260.08 4.9 0.1310.083.4 7.10.526.4 760.304.4 8.0 220.4 3.6%
Aug 2, 20180.280.06 5.2 0.1410.073.7 7.20.566.6 780.294.5 7.4 224.5 3.3%
Aug 1, 20180.280.08 5.2 0.1430.083.7 7.40.706.7 800.304.6 8.7 228.2 3.8%

* Adjusted Volume – Volume from spot markets excluding markets with no fees and transaction mining
** All figures given as of 03:00 UTC of the corresponding day
Data source: coinmarketcap.com

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 newsDescriptionNature of impactType of impact
1.Goldman Sachs Is Reportedly Weighing a Crypto Custody Service [source: coindesk.com]August 6, 2018A custody service would make it possible to reduce the risk of a loss of digital assets through various types of hacker attacks. Industry sources confirm that this issue is being discussed within the company, but no concrete dates have been set.Market ⇑

 

Favorable
2.Barclays Still Showing an Interest in Crypto Trading, Despite Previously Ruling It Out [source: cryptodaily.co.uk]August 8, 2018Despite their official skepticism regarding cryptocurrencies, major banks and financial institutions are still hatching plans to trade in digital assets, which, granted, have not yet been officially approved.Market ⇑

 

Favorable
3.Australia’s Biggest Bank Launches World’s First Blockchain Bond with World Bank [source: newsbtc.com]August 10, 2018This became possible as part of the implementation of the World Bank’s mandate to reduce poverty in the world.Market ⇑Favorable

 

1.2 Market trends

The weekly cryptocurrency and digital asset market trends from December 31, 2017, to August 12, 2018, are presented as graphs (Fig. 1.1-1.5).

Table 1.7. Legends and descriptions of the graphs

Global FiguresFigure**Description
Total cryptocurrency market capitalization, USD millionFig. 1.1This 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. 1.1This 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. 1.2This 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. 1.2This 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 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 August 12, 2018, this number had already reached 1,735 (coins and tokens on which there is information on capitalization and/or turnover were considered).
Average market capitalization, USD millionFig. 1.3This 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 capitalizationFig. 1.4, 1.5This 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

*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 August 12, 2018. Over this period, market capitalization dropped from $572.5 billion to $214.6 billion, i.e. by 63%. Last week (August 5-12, 2018) cryptocurrency market capitalization decreased from $253.8 billion to $214.6 billion (as of August 12, 2018, based on the average daily figures from coinmarketcap.com).

 Figure 1.2. Change in market capitalization

The market is susceptible to sudden and drastic fluctuations. Nine of the thirteen weeks in the first quarter of 2018 were “in the red,” i.e. capitalization fell based on the results of each of these weeks, and the weekly fluctuations ranged from USD -136 billion to USD +250 billion.

Six of the thirteen weeks in the second quarter were “in the red.” The market grew based on the results of the other seven weeks. As noted earlier, a growth was seen in April, while in May and June there was generally a reduction in capitalization. The weekly fluctuations ranged from USD -72 billion to USD +62.2 billion.

Three of the past six weeks of the third quarter saw an increase in capitalization (with due account of average daily data of coinmarketcap.com, see Fig. 1.2). In the whole, since early July capitalization has fallen by $45 billion.

Figure 1.3. Number of cryptocurrencies and digital assets

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 presented on coinmarketcap has increased from 1,335 to 1,818. However, when calculating cryptocurrency market capitalization only those coins and tokens on which there is information on trades (trading volume) are taken into consideration. Over the past week their number increased from 1,645 to 1,735, while average capitalization decreased to $123.7 million. In total, over the past month 210 new coins and tokens have appeared on coinmarketcap.com. However, it should be noted that a number of other coins and tokens were also excluded from the list. Among the tokens that were added to coinmarketcap.com last week, Pundi X NEM, HYCON, GSENetwork, Insight Chain, ProximaX, Thingschain, and Social Lending Token showed high trading volumes.

 Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

One of the world’s largest financial corporations, the Intercontinental Exchange (ICE), has created Bakkt, a global platform for trading in digital assets. In November 2018, this platform plans to launch a one-day physically delivered bitcoin future (provided that it is reviewed and approved by the US Commodity Futures Trading Commission (CFTC)), after the maturity of which the backer will receive the underlying asset (bitcoin) and not a monetary equivalent (As an initial component of the Bakkt offering, Intercontinental Exchange’s U.S.-based futures exchange and clearing house plan to launch a 1-day physically delivered Bitcoin contract along with physical warehousing in November 2018, subject to CFTC review and approval).

The platform also plans to create a guarantee fund and other services for users and institutional backers. According to the director of the Pantera Capital cryptocurrency hedge fund, Dan Morehead, the news concerning the delay by the US Securities and Exchange Commission (SEC) of a decision on bitcoin ETFs is not so important, but the development of the Bakkt platform by Intercontinental Exchange, Microsoft and Starbucks is important news. “This is really important news. It will have a huge impact on market development for the next 5-10 years.

I am convinced that people should be focusing more on this news,” announced Morehead.Due to growing demand from clients, another Swiss bank, Maerki Baumann, will begin to work with cryptocurrencies.On August 9 the CEO of Binance, Zhao Changpeng, presented the first version (pre-a) of the Binance Decentralized Exchange (DEX), as well as the process of creation, listing and trading in tokens.

Overall, despite the drop in cryptocurrency market capitalization, trading volumes increased over the past week. As we mentioned in our previous report, this is due to the increasing popularity of fee mining. The trans-fee model (or trade-to-mine, trans-fee mining) proposes the issue of tokens to traders by exchanges as a reward for trading. In particular, on August 13 the 24-hour trading volumes without adjustment (Reported Volume) of the three leading cryptocurrency exchanges (BitForex, BitMEX, and Iquant) equaled around $10 billion. The 24-hour trading volumes with adjustment (Adjusted Volume) of the three leaders (Binance, OKEx, and Huobi) equaled only around $2.5 billion, according to the data of coinmarketcap.

Annex – Glossary 

Key termsDefinition
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 capitalizationThe market value of an individual coin or token circulating on the market.
Total cryptocurrency market capitalizationThe 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.
DominanceMarket share, i.e. the ratio of market capitalization of a particular cryptocurrency (coin, token) to total cryptocurrency market capitalization. Expressed as a %.
Not Mineable

 

A coin that is not mineable. The term is used for cryptocurrencies (coins, tokens) which cannot be mined or issued through mining.
Pre-minedA 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 assetsNumber 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 capitalizationAverage market capitalization, i.e. the ratio of the market capitalization of all cryptocurrencies and digital assets to their number.
ZAK-n Crypto indexThe 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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