The report covers data on the crypto market movements during 2018. Special focus has been given to the analysis of changes taking place over August 12-19, 2018.

Information as of August 20, 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 period (August 12-19, 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 May 1, 2018, to August 19, 2018*

Parameter1-May-181-June-18MoM, %1-July-18MoM, %1-Aug-18DoD, %5-Aug-18DoD, %12-Aug-18DoD, %19-Aug-18DoD, %
1Total market capitalization, USD billion423.2331.3-21.7% 257.7-22.2% 277.87.8%253.8-8.6% 212.5-16.3% 212.60.0%
2Altcoin market capitalization, USD billion265.8203.2-23.6%147.9-27.2%144.3-2.4%132.9-7.9%104.4-21.4%102.0-2.3%
Altcoin dominance, %62.8%61.3%57.4%51.9%52.4%49.1%48.0%
3Bitcoin price, $9 251.57 500.7-18.9% 6 411.7-14.5% 7 769.021.2%7 031.1-9.5% 6 283.7-10.6% 6 422.62.2%
Bitcoin market capitalization, USD billion157.4128.0-18.6%109.8-14.2%133.521.6%120.9-9.5%108.1-10.6%110.62.3%
Bitcoin dominance, %37.2%38.6%42.6%48.1%47.6%50.9%52.0%
4Ethereum price, $670.5578.7-13.7% 455.2-21.3% 433.9-4.7% 407.4-6.1% 320.8-21.2% 295.7-7.8%
Ethereum market capitalization, USD billion66.557.7-13.1%45.7-20.8%43.8-4.1%41.2-6.0%32.5-21.1%30.0-7.7%
Ethereum dominance, %15.7%17.4%17.7%15.8%16.2%15.3%14.1%
5Bitcoin Cash price, $1 348.6995.7-26.2% 749.2-24.8% 780.04.1%696.1-10.8% 564.4-18.9% 554.9-1.7%
Bitcoin Cash market capitalization, USD billion23.117.1-25.9%12.9-24.5%13.54.4%12.0-10.7%9.8-18.9%9.6-1.6%
Bitcoin Cash dominance, %5.5%5.2%5.0%4.8%4.7%4.6%4.5%
6Litecoin price, $148.3118.0-20.4% 81.5-30.9% 80.4-1.4% 73.4-8.7% 58.2-20.7% 57.2-1.7%
Litecoin market capitalization, USD billion8.46.7-19.8%4.7-30.4%4.6-0.6%4.2-8.6%3.4-20.5%3.3-1.5%
Litecoin dominance, %2.0%2.0%1.8%1.7%1.7%1.6%1.6%
7Volume (24h) 4 crypto, USD billion**11.87.7-35.0%7.1-7.1%7.55.4%5.6-25.7%7.839.8%5.5-29.8%
Market cap 4 crypto, USD billion279.7226.9-18.9%186.7-17.7%207.911.4%190.9-8.2%162.2-15.1%163.10.5%
ZAK-4 Crypto index4.2%3.4%3.8%3.6%2.9%4.8%3.4%
4 crypto dominance, %66.1%68.5%72.4%74.8%75.2%76.3%76.7%
8Volume (24h) 8 crypto, USD billion**16.09.2-42.4%8.2-10.5%8.75.2%6.4-25.9%8.836.8%6.4-26.6%
Market cap 8 crypto, USD billion319.5255.9-19.9%205.9-19.5%228.210.8%209.3-8.3%177.1-15.4%177.80.4%
ZAK-8 Crypto index5.0%3.6%4.0%3.8%3.1%5.0%3.6%
8 crypto dominance, %75.5%77.2%79.9%82.1%82.5%83.3%83.6%

* Data as of August 19, 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 (not including Tether) are used. At present (August 19, 2018), the cryptocurrencies Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, Stellar, and EOS are used to calculate the ZAK-8 index.
**** This report uses the data of ICOBox and coinmarketcap.com
When analyzing cryptocurrency market trends, the period from August 12-19, 2018, is used, while the calendar week from August 13-19, 2018, is used for the news overview and the analysis of the ICO market.

Cryptocurrency market capitalization remained practically the same over the analyzed period (August 12-19, 2018) and as of 03:00 UTC equaled $212.6 billion (see Table 1.1). At the same time, bitcoin dominance increased to 52%. The market dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on August 19, 2018, equaled 76.7% and 83.6%, respectively (see Table 1.1).

The drop in cryptocurrency market capitalization compared to the start of the month equaled around $65 billion, including a drop in bitcoin capitalization by $23 billion and altcoin capitalization by $42 billion.

Last week cryptocurrency market capitalization fell below the threshold of $200 billion for the first time this year, reaching the level of November 2017. During the period from August 12-19, 2018, cryptocurrency market capitalization fluctuated from $189.8 billion (min) to $225 billion (max) (Fig. 1a), i.e. within a range of $35 billion. For its part, bitcoin capitalization fluctuated from $103.2 billion (min) to $113.7 billion (max), i.e. within a range of $10.5 billion.

Figure 1a. Cryptocurrency market capitalization since August 12, 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. As a result, over the past week bitcoin dominance increased by 1.1%, from 50.9% to 52% (see Table 1.1).

Figure 1b. Capitalization of the cryptocurrency market (blue) and bitcoin (red) since August 12, 2018

Data source: coinmarketcap.com

A clear downward trend can be seen on August 13-14. What could be causing this fall in capitalization? All that can be said for certain is that after August 14 most of the news stories were positive (see Tables 1.3, 1.4)

The rise and fall of cryptocurrency prices over the past seven days (August 12-19, 2018)

Last week’s leaders from among the top 500 cryptocurrencies by capitalization, which showed an appreciation of more than 50%, were the projects TaTaTu (+252.13%), Ternio (+98.39%), Aston (+76.31%), Cortex (+73.53%), and All Sports (+64.24%). The growth of Ontology (+44.67%), Nano (+38.28%), VeChain (+35.76%) should also be noted.

During the period from August 12-19, 2018, the change in the prices of cryptocurrencies in the top 500 ranged from -50% (Paypex) to +252.1% (TaTaTu). The growth leader during this week was the TaTaTu project, which completed its ICO and token sale in late June with a considerable amount of collected funds ($575 million). Over the past week, its price appreciated by more than 250%. Two major jumps in price were seen on August 16 and 18. However, no notable news items took place on these days. In the end, the project’s capitalization increased from $20 million to $71 million (on August 20, 2018). This growth can be explained by manipulation by major market players and the gradual development of the project. Information was published on August 19 on the largest crypto giveaway from the TaTaTu project: $50 million for its users (The Biggest Crypto Giveaway: $50 Million for Users Who Join).

On the other hand, the Paypex price showed the worst result, falling by 50% over the week despite more than a threefold jump in price on August 15. This intense volatility may be due to the currency’s relatively small trading volume, which fluctuates from $30,000-50,000 per day.

Only 147 cryptocurrencies and digital assets from the top 500 showed growth, including 29 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 16 to 15, with the price of all of them decreasing except XRP (+7.8%), Monero (+2.26%), Bitcoin (+1.11%), Stellar (+0.29%), EOS (+0.1%) and Tether (the price of which is tied to the US dollar).

The coins and tokens from the top 100 that demonstrated the largest price growth are given in Fig. 2.

Biggest gainers and losers over the week (August 12-19, 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 100 by market capitalization were considered.

Figure 2. Largest growth in prices over the past week

This report uses the data of ICOBox and 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 19, 2018Market capitalization, USD billionFactors or events that might have led to a growth in cryptocurrency prices over the past week
1TaTaTuTTU252.13%$0.7263010.07The growth leader over the week was the TaTaTu project, which completed its ICO and token sale in late June with a considerable amount of collected funds ($575 million). Over the past week its price appreciated by more than 250% (see above).

The Cortex price also showed good growth, around 70% for the week. The main reason for the leap was the news on the token’s upcoming listing on the major exchange BitHumb (Twitter)

Ontology announced the launch of its main net in Seoul, thereby ensuring itself the third largest growth in price among the top 100 coins.(Twitter)

The Nano price increased after the successful testing of the beta version on August 16 (Twitter)

The VeChain price might have grown on the strength of positive news on the coin’s expanded trade opportunities on the major exchange KuCoin (Twitter)

One of the favorable news items that influenced the price of the Elastos coin could have been the publication of a positive weekly report (Twitter)

Populous (PPT) is a trading platform built on Ethereum blockchain that makes it possible to create invoices, something that no business can do without.

Metaverse ETP is a public and fully decentralized blockchain-based cryptocurrency.

Nebulas, which is in 66th place in terms of capitalization, is the token of a platform used to search for information required by blockchain projects.

Veritaseum (VERI) is an autonomous decentralized platform that works based on smart contracts.

 

2CortexCTXC73.53%$0.4752450.07
3OntologyONT44.67%$2.110.32
4NanoNANO38.28%$1.570.21
5VeChainVET35.76%$0.0126000.70
6ElastosELA30.64%$9.310.07
7PopulousPPT27.70%$5.280.20
8Metaverse ETPETP25.91%$3.120.15
9NebulasNAS22.95%$1.760.08
10VeritaseumVERI19.14%$28.830.06

 

A depreciation in price was seen last week for 353 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 19, 2018Market capitalization, USD billionFactors or events that might have led to a fall in cryptocurrency prices over the past week
1AuroraAOA-34.52%$0.0208200.07Aurora (AOA) is a blockchain platform for creating superfast and easy smart contracts for simple interaction with various technologies, including Big Data, the Internet of Things, artificial intelligence and more.

Binance Coin (BNB) is an ERC 20 standard token that is used to pay transaction fees at a discount when trading on the Binance exchange, which began its work in 2017 and is now one of the leading cryptoexchanges by trading volume.

MaidSafeCoin (MAID) is a decentralized platform for developing applications on Bitcoin blockchain and using the Proof of Resources protocol.

Bitcoin Diamond is a bitcoin hard fork that took place on November 24, 2017, at the 495,866th block of the bitcoin network.

Augur is a decentralized platform on Ethereum blockchain that can be used by any network participant to forecast the outcome of any world event.

WAX is the digital token of the first decentralized site that allows gamers to trade in virtual goods.

MOAC is the digital token of a platform that strives to create the best platform for developing decentralized apps using smart contracts.

Dropil (DROP) is a token used within a cryptocurrency financing platform. The essence of the project is autonomous financing using cryptocurrencies with minimal risks.

0x is a protocol that simplifies the exchange of ERC20 tokens. The protocol makes it possible to transmit ERC20 tokens between users quickly and safely using Ethereum smart contracts.

NXT is a fully decentralized cryptocurrency based on its own blockchain.

2Binance CoinBNB-15.71%$9.890.94
3MaidSafeCoinMAID-15.62%$0.2420130.11
4Bitcoin DiamondBCD-14.74%$1.090.17
5AugurREP-14.36%$18.010.20
6WAXWAX-14.23%$0.0724120.07
7MOACMOAC-14.19%$3.300.21
8DropilDROP-13.79%$0.0030190.06
90xZRX-13.48%$0.7519430.40
10NxtNXT-13.43%$0.0682530.07

This report uses the data of ICOBox and coinmarketcap.com
The change in price was calculated based on average daily data

Table 1.4 shows events that took place from August 13-19, 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 13-19, 2018

Factors and events

(link to source)

Date of newsDescriptionNature of impactType of impact
1.                    Crypto Traders Eye Turkey as Local Currency Tumbles [source: ethereumworldnews.com]August 13, 2018Residents of Turkey feel more confident with cryptocurrency than they do with the lira, which has lost a third of its value since the start of the year.Market ⇑

 

Favorable
2.                    Vietnamese Government Bans Mining Hardware Imports [source: bitcoinmagazine.com]August 15, 2018Vietnamese miners will become an endangered species: the final mining rig was imported into the country in June. Now these imports are banned in Vietnam, with importers subject to liability.Market ⇓Unfavorable
3.                    Jamaican Stock Exchange to Allow Crypto Trading [source: ethnews.com]August 15, 2018For now it is not clear which digital currencies or tokens will be included in the listing of the new JSE platform, but it is known that the trading platform will begin working before the end of this year. Moreover, the management of the exchange does not rule out the launch of its own cryptocurrency in the future.Market ⇑

 

Favorable
4.                    U.S. Investors Can Now Buy the Swedish Exchange-Traded BTC Note [source: Coinspeaker]August 16, 2018A new solution has appeared for American traders – an ETN tied to the US dollar.Market ⇑

 

Favorable
5.                    The Bitcoin Price Has Increased to $6,500 [source: coinmarketcap.com]August 17, 2018Market ⇑

 

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 $5.5 billion to $8.1 billion (Table 1.5.a). The value of the daily ZAK-4 Crypto ranged from 2.9% to 5.2% of capitalization. The highest trading volume was seen on August 14.

Table 1.5.a. Daily ZAK-4 Crypto index calculation (from August 1-19, 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 19, 20186 423 3.3 110.6 296 1.4 30.0 555 0.4 9.6 0.330.3 12.9 5.5 163.1 3.4%
Aug 18, 20186 583 4.0 113.3 317 1.8 32.1 598 0.4 10.3 0.360.4 14.3 6.6 170.1 3.9%
Aug 17, 20186 341 5.0 109.2 288 2.0 29.2 517 0.5 8.9 0.290.5 11.5 7.9 158.8 5.0%
Aug 16, 20186 294 4.3 108.3 283 1.6 28.7 513 0.4 8.9 0.280.2 11.1 6.5 157.0 4.2%
Aug 15, 20186 221 4.9 107.1 280 1.9 28.4 513 0.4 8.9 0.280.3 10.9 7.5 155.3 4.8%
Aug 14, 20186 288 5.3 108.2 286 2.1 29.0 535 0.4 9.3 0.280.3 11.0 8.1 157.4 5.2%
Aug 13, 20186 341 4.1 109.1 320 1.8 32.4 571 0.4 9.9 0.300.2 11.7 6.4 163.1 4.0%
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
*** This report uses the data of ICOBox and coinmarketcap.com

By the end of the week the 24-hour trading volumes (Volume 24h) for the eight dominant cryptocurrencies not including Tether (Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, EOS, and Cardano) equaled $6.4 billion (Table 1.5.b), or 3.6% 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) 8 crypto*Market cap 8 cryptoZAK-8 Crypto index
Date**$USD billionUSD billion$USD billionUSD billion$USD billionUSD billion$USD billionUSD billionUSD billionUSD billion%
Aug 19, 20180.220.06 4.2 0.1000.052.6 5.10.664.6 570.203.3 6.4 177.8 3.6%
Aug 18, 20180.240.07 4.5 0.1100.102.8 5.50.825.0 620.243.6 7.8 186.0 4.2%
Aug 17, 20180.220.09 4.0 0.0960.102.5 4.51.014.1 550.263.2 9.4 172.6 5.5%
Aug 16, 20180.220.07 4.1 0.0950.052.5 4.60.654.2 550.213.2 7.5 170.8 4.4%
Aug 15, 20180.220.10 4.1 0.0950.092.5 4.70.694.2 550.283.2 8.6 169.2 5.1%
Aug 14, 20180.220.10 4.2 0.1030.112.7 4.60.594.2 570.253.3 9.2 171.8 5.3%
Aug 13, 20180.220.10 4.2 0.1130.062.9 5.00.674.5 590.223.4 7.5 178.2 4.2%
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
*** This report uses the data of ICOBox and 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.Chinese State-Owned Aerospace Firm Turns to Blockchain to Manage Billions of Invoices [source: cointelegraph.com]August 14, 2018Cheaper, easier, quicker: the Chinese Aerospace Science and Industry Corporation Ltd. has developed a blockchain system for the tax service.Market ⇑

 

Favorable
2.Crypto’s Millennial Mining Tycoon Is Planning a $3 Billion IPO [source: www.bloomberg.com]August 15, 2018If you believe Bloomberg, the mining giant has toned down its appetite considerably and is no longer bidding to become the largest IPO in history. In all likelihood, this is due to the losses that the company incurred in the second quarter due to a fall in the price of Bitcoin Cash.Market ⇑

 

Favorable

 

1.2 Market trends

The weekly cryptocurrency and digital asset market trends from December 31, 2017, to August 19, 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 19, 2018, this number had already reached 1,743 (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 of the corresponding day. These differences in values may be significant during periods of high cryptocurrency market volatility.
** This report uses the data of ICOBox and 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 19, 2018. Over this period, market capitalization dropped from $572.5 billion to $212.3 billion, i.e. by 63%. Last week (August 12-19, 2018) cryptocurrency market capitalization decreased from $214.6 billion to $212.3 billion (as of August 19, 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 seven weeks of the third quarter saw an increase in capitalization, and four a decrease (with due account of average daily data of coinmarketcap.com, see Fig. 1.2). On the whole, since early July capitalization has fallen by approximately $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 1,855. 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 1,743, while average capitalization decreased to $121.8 million. In total, over the past month 230 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, Smart Application Chain, HitChain, TTC Protocol, and Ubex showed high trading volumes.

 Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

Without a doubt, right now we are experiencing one of the moments of truth for the crypto industry. Opinions are split on whether there will be further growth or a continued fall.

Ethereum co-founder Joseph Lubin, in an interview on the Bloomberg television channel, said that the price surge at the end of last year was a bubble and in previous years “we’ve seen six big bubbles….,” but this is a normal process for a growing ecosystem that is becoming stronger, even when prices fall. Lubin sees a future in which Ethereum will be significant among hundreds of other co-existing protocols.

At the same time, last week, on August 13, the Ethereum price dropped below $300 and almost reached the level of $250 (i.e. the level of October-November 2017). In the opinion of the head of BitMEX, today Ethereum is making its way to $200. Meanwhile, the prices of most projects’ tokens have fallen, in the best-case scenario, by 50% since 2017. In the worst-case scenario, they are barely above zero.

Naturally, the Ethereum price depends on the capitalization of the tokens issued on its platform, therefore its ascent took place during the ICO boom.

In the opinion of the President of the Xaro startup, which he expressed on his Twitter account, “we could be in the midst of the extinction-level event for ‘cryptoassets’… 90%+ of @CoinMarketCap list will disappear. Meantime, lower BTC price means incredible opportunity to buy more #bitcoin.”

Meanwhile, according to the data of Blockchain.info the number of transactions in the bitcoin network has fallen to the level of early 2016.

There is a distinct relationship between the bitcoin price and the number of transactions.

For instance, CoinDesk analyst Omkar Godbole believes that bitcoin may soon set a new low for this year.

Coinbase CEO Brian Armstrong, in an interview with Bloomberg, expressed the opinion that the mass acceptance of bitcoin will take time. He highly assesses the potential for countries that are experiencing an economic crisis to use cryptocurrencies, and believes that in 3-5 years people will see a real alternative in bitcoin and other cryptocurrencies.

The prime example of Venezuela’s use of cryptocurrencies can be seen as a confirmation of his words. The country’s President Maduro plans to tie prices and wages to the national cryptocurrency, El Petro.

The crypto industry is developing. The lifespan of some projects is very short, and they are replaced by new projects, but the strongest projects remain and grow and develop with each new turn.

On August 13 Square published in Twitter that the Bitcoin application Cash App has become available in the 50 US states. The Chinese Aerospace Science and Industry Corporation Ltd. (CASC), meanwhile, plans to use blockchain to manage billions of invoices. CoinDesk writes that the South Korean Ministry of Economy and Finance is investing $880 million in the development of innovative technologies.

As Bloomberg reported on August 15, exchange-traded bitcoin notes tied to the US dollar have been introduced on Nasdaq Stockholm. This is an alternative to regulated bitcoin ETFs, which everyone is tired of waiting for the SEC to approve.

The Internet giant JD.com presented a blockchain platform for the corporate sector on which digital apps can be used to track invoices.

In conclusion, it can be said that he who correctly determines where the bottom is for bitcoin and Ether will get richer!

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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