This report presents data on the cryptocurrency market movements in September, with special attention paid to the analysis of changes taking place over September 2-9, 2018.

Information as of September 10, 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;
  • 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 during September 2018, including over the past week (September 2-9, 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 September 9, 2018*

Parameter1-Apr-181-July-18QoQ, %1-Aug-18MoM, %1-Sep-18MoM, %2-Sep-18DoD, %9-Sep-18DoD, %
1Total market capitalization, USD billion263.9257.7-2.3% 277.87.8%228.5-17.7% 236.83.6%193.2-18.4%
2Altcoin market capitalization, USD billion145.2147.91.9%144.3-2.4%107.0-25.8%112.85.4%85.8-23.9%
Altcoin dominance, %55.0%57.4%51.9%46.8%47.6%44.4%
3Bitcoin price, $7 003.16 411.7-8.4% 7 769.021.2%7 044.8-9.3% 7 189.62.1%6 223.4-13.4%
Bitcoin market capitalization, USD billion118.7109.8-7.5%133.521.6%121.5-9.0%124.02.1%107.4-13.4%
Bitcoin dominance, %45.0%42.6%48.1%53.2%52.4%55.6%
4Ethereum price, $397.3455.214.6%433.9-4.7% 283.5-34.7% 295.54.2%198.4-32.9%
Ethereum market capitalization, USD billion39.145.716.8%43.8-4.1%28.8-34.2%30.04.2%20.2-32.8%
Ethereum dominance, %14.8%17.7%15.8%12.6%12.7%10.5%
5Bitcoin Cash price, $688.0749.28.9%780.04.1%544.0-30.3% 616.013.2%474.6-23.0%
Bitcoin Cash market capitalization, USD billion11.712.99.9%13.54.4%9.4-30.0%10.713.3%8.2-22.9%
Bitcoin Cash dominance, %4.4%5.0%4.8%4.1%4.5%4.3%
6Litecoin price, $116.981.5-30.3% 80.4-1.4% 61.7-23.2% 66.06.9%53.3-19.3%
Litecoin market capitalization, USD billion6.54.7-28.6%4.6-0.6%3.6-22.6%3.86.9%3.1-19.1%
Litecoin dominance, %2.5%1.8%1.7%1.6%1.6%1.6%
7Volume (24h) 4 crypto, USD billion6.47.111.3%7.55.4%6.4-14.6%6.50.8%5.7-11.6%
Market cap 4 crypto, USD billion189.7186.7-1.6%207.911.4%173.0-16.8%178.53.2%146.9-17.7%
ZAK-4 Crypto index**3.4%3.8%3.6%3.7%3.6%3.9%
4 crypto dominance, %71.9%72.4%74.8%75.7%75.4%76.0%
8Volume (24h) 8 crypto, USD billion7.28.214.1%8.75.2%7.6-12.4%7.71.9%6.7-13.5%
Market cap 8 crypto, USD billion208.7205.9-1.4%228.210.8%189.2-17.1%195.43.3%160.0-18.1%
ZAK-8 Crypto index***3.5%4.0%3.8%4.0%4.0%4.2%
8 crypto dominance, %79.1%79.9%82.1%82.8%82.5%82.8%

* Data as of September 9, 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 (September 9, 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, ICOBox Blockchain Research Center (IBRC), and coinmarketcap.com
When analyzing cryptocurrency market trends, the period from September 2-9, 2018, is used, while the calendar week from September 3-9, 2018, is used for the news overview and the analysis of the ICO market

Cryptocurrency market capitalization fell over the analyzed period (September 2-9, 2018), and as of 03:00 UTC equaled $193.2 billion (see Table 1.1). In this regard, bitcoin dominance increased to 55.6%. The market dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on September 9, 2018, equaled 76% and 82.8%, respectively (see Table 1.1).

The drop in cryptocurrency market capitalization compared to the start of the month equaled around $35 billion, including a drop in bitcoin capitalization by $14 billion and altcoin capitalization by $21 billion.

During the period from September 2-9, 2018, cryptocurrency market capitalization fluctuated from $192.1 billion (min) to $240.3 billion (max) (Fig. 1a), i.e. within a range of $48 billion. For its part, bitcoin capitalization fluctuated from $107 billion (min) to $127.4 billion (max), i.e. within a range of $20.4 billion.

Figure 1a. Cryptocurrency market capitalization since September 1, 2018

Data source: coinmarketcap.com

Figure 1b shows bitcoin capitalization (red line) superimposed on cryptocurrency market capitalization (blue line). The high correlation between the indicators is obvious. This synchronicity has been seen for more than four months already, with a steady growth in bitcoin dominance. Since the start of May, bitcoin dominance has increased from 36% to 55.6%.

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

Data source: coinmarketcap.com

A clear downward trend can be seen on September 5-6. Capitalization fell by $39 billion over a space of 15 hours (Fig. 1a, 1b).

According to many publications, the report of Business Insider dated September 5 stating that Goldman Sachs was abandoning its plans to trade in cryptocurrencies was the incendiary news that led to this sharp drop. This “fake news,” as it turned out to be, managed to trigger a market collapse over these two days (Goldman Sachs назвал «фейком» новость об отказе от крипто-подразделения). Some major altcoins, including Ethereum, hit new record lows for the year (see the news in Tables 1.4, 1.6). Despite the denial of this report on September 7, capitalization did not recover. In fact, in the evening of September 8 there was another market plunge, with capitalization plummeting by another $8 billion (Fig. 1a, 1b).

The rise and fall of cryptocurrency prices over the past seven days (September 2-9, 2018)

Last week’s leaders from among the top 500 cryptocurrencies by capitalization that showed the largest growth were the projects BitcoinDark (+255.5%) and Digitex Futures (+96%). The growth of Lympo (+83.15%), Niobium Coin (+66.05%), Cosmo Coin (+56.65%), and Holo (+43.87%) should also be noted.

During the period from September 2-9, 2018, the change in the prices of cryptocurrencies in the top 500 ranged from -68.9% (ETERNAL TOKEN) to +255.5% (BitcoinDark). The price of the BitcoinDark cryptocurrency (BTCD), created in 2014, which previously positioned itself as an improved alternative to bitcoin, showed a growth of 255% over the week against the backdrop of increased trading volume. As reported by forklog, in 2018 the creators of BitcoinDark turned their attention to the development of the Komodo (KMD) cryptocurrency. After BTCD was left without the support of its creators, asset holders received the right to exchange the coins for KMD until mid-January 2018.

Eternal Token, on the other hand, showed the worst price dynamics. The price of this token has been falling for the entire month since it was listed on an exchange on August 10, with the negative trend being exacerbated by the pessimistic mood of the market.

The price of 40 cryptocurrencies and digital assets from the top 500 showed growth, including 4 from the top 100.

Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion remained the same at 15, with the price of all of them decreasing except Tether (the price of which is tied to the US dollar).

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 (September 2-9, 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

This report uses the data of ICOBox, ICOBox Blockchain Research Center (IBRC), 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 September 9, 2018Market capitalization, USD billionFactors or events that might have led to a growth in cryptocurrency prices over the past week
1BitcoinDarkBTCD255.49%$57.910.07The price of the BitcoinDark cryptocurrency (BTCD), created in 2014, which previously positioned itself as an improved alternative to bitcoin, showed a growth of 255% over the week against the backdrop of increased trading volume.

The price of Digitex increased by nearly 100%. Digitex is a futures exchange that does not charge a commission fee and does not require the trust of intermediaries, where users can trade in the prices of digital assets.

Cosmo Coin is the coin of a platform for trading in products of the beauty and fashion industry.

The Holo cryptocurrency is the digital token of the Holochain platform, which makes it possible to store and distribute data.

Arcblock is a cryptocurrency that has very similar functions to Cardano. In other words, Arcblock is an entire ecosystem for blockchain projects and their decentralized applications.

The Bitcoin Diamond team managed to increase its block size to 8 MB, allowing blocks to be generated five times faster than in the main network.

Nexty (NTY) is the mineable digital coin of a platform for collecting funds for the development of ecommerce resources.

Bitcoin Interest is a cryptocurrency that appeared as a result of a bitcoin hard fork that has a number of distinguishing technical and ideological characteristics.

Tokenomy is a blockchain platform for the digitalization or tokenization of the assets of companies from the real sector of the economy.

The cryptocurrency Dropil (DROP) is a token used within a cryptocurrency investment platform.

2Digitex FuturesDGTX96.03%$0.0372490.03
3Cosmo CoinCOSM56.65%$0.0426230.02
4HoloHOT43.87%$0.0012800.17
5ArcblockABT29.49%$0.3257510.03
6Bitcoin DiamondBCD24.98%$1.660.25
7NextyNTY24.39%$0.0003020.04
8Bitcoin InterestBCI15.11%$1.450.03
9TokenomyTEN13.40%$0.1808570.04
10DropilDROP9.65%$0.0032930.07

 

A depreciation in price was seen last week for 460 coins and tokens from the top 500 cryptocurrencies and digital assets by capitalization. The ten crypto assets 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 September 9, 2018Market capitalization, USD billionFactors or events that might have led to a fall in cryptocurrency prices over the past week
1MOACMOAC-41.39%$1.340.08The MOAC cryptocurrency is the digital token of a platform that strives to create the best platform for developing decentralized apps using smart contracts.

Wanchain is the digital token of a decentralized platform concerned mainly with the provision of banking services such as: currency exchange, lending, and performance of transactions.

Bitcoin Private is a fast, anonymous, decentralized cryptocurrency with open source code that is managed by the community.

During the night of September 9, the price of the second largest cryptocurrency by capitalization, Ethereum, dropped below $200, returning to levels that were last seen in July 2017. Over the last few days the ETH price has depreciated by more than 12%, and over the week by more than 35%. Such a dramatic fall in the ETH price comes against the backdrop of the continuing overall negative mood of the market.

The Nano (NANO) cryptocurrency is a decentralized site that does not offer users anything other than monetary services.

The RChain cryptocurrency is the digital token of the eponymous platform, which is designed for the development of blockchain-based decentralized applications.

The ICON cryptocurrency is the digital token of the ICON site, which would like to become a platform to unite all blockchains in one place.

The IOS Token is the digital token of a brand new network based on the IOS (Internet of Services) blockchain.

The Ark project is a sort of combination of the Bitshares and Lisk cryptocurrencies. The technology of this project takes the best features and principles of these projects into account, but the developers also tried to improve them somewhat.

2WanchainWAN-38.90%$0.8869240.09
3Bitcoin PrivateBTCP-38.16%$2.920.06
4AuroraAOA-34.92%$0.0144220.05
5EthereumETH-34.13%$194.7319.83
6NanoNANO-33.55%$2.040.27
7RchainRHOC-33.27%$0.2615020.10
8ICONICX-32.55%$0.6350340.25
9IOSTIOST-32.42%$0.0114110.10
10ArkARK-32.30%$0.6290900.07

This report uses the data of ICOBox, ICOBox Blockchain Research Center (IBRC), and coinmarketcap.com
The change in price was calculated based on average daily data

Last week Ethereum was among the 10 coins and tokens that demonstrated the most significant fall in price (Fig. 3). As Business Insider writes, according to Wall Street analyst and co-founder of Fundstrat Global Advisors Tom Lee the launch of Ethereum futures might not only lead to a fall in the price of the second largest cryptocurrency by capitalization, but might also have a positive impact on its main competitor, bitcoin.

Table 1.4 shows events that took place from September 3-9, 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, September 3-9, 2018

Factors and events

(link to source)

Date of newsDescriptionNature of impactType of impact
1.                   Microsoft Linking Products to Blockchain

[source: chainbits.com]

September 3, 2018Slowly but surely Microsoft is switching all its services to blockchain. Now you can even send information from Twitter to a distributed ledger, having first placed it in the company’s cloud services.Market ⇑

 

Favorable
2.                   Walmart Explores Blockchain for Connecting Automated Delivery Drones

[source: coindesk.com]

September 3, 2018The largest retailer, Walmart, has been patenting new developments in the area of blockchain all year. The latest application has to do with a management system for delivery drones.Market ⇑

 

Favorable
3.                   Australian Securities Exchange Delays Planned Switch to Blockchain by Six Months

[source: cointelegraph.com]

September 4, 2018The Australian Securities Exchange had big plans: to transition the system for processing clearing settlements to blockchain by March 2018. In September it was learned that the project has been delayed.Market ⇓Unfavorable
4.                   China Blockchain Pilot Includes Hong Kong, Macau, Guangdong

[source: cryptobriefing.com]

September 5, 2018The credit institution intends to concentrate in the coming years on researching innovations in cloud-computing, big data, artificial intelligence, blockchain, and the Internet of Things.Market ⇑

 

Favorable
5.                   Cryptocurrencies Collapse After Report Goldman Is Rolling Back Trading Desk Plan

[source: cnbc.com]

September 6, 2018The world’s leading investment bank prefers to wait for the introduction of coherent rules on the cryptocurrency market. For now the organization will only develop custody services aimed at large funds.Market ⇓Unfavorable
6.                   ‘Fake News.’ Goldman Sachs Denies Report About Its Cryptocurrency Trading Desk That Sent Bitcoin Plunging

[source: fortune.com]

September 7, 2018This news, which was first reported by Business Insider, turned out to be fake, but managed to trigger a market collapse over these two days. Cryptocurrency capitalization fell by more than $30 billion, and several major altcoins, including Ethereum, hit new record lows for the year.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 September the 24-hour trading volumes (Volume 24h) for the four dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple) equaled from $5.7 billion to $9.1 billion (Table 1.5.a). The value of the daily ZAK-4 Crypto ranged from 3.4% to 5.2% of capitalization. The highest trading volume was seen on September 5-6.

Table 1.5.a. Daily ZAK-4 Crypto index calculation (from September 1-9, 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%
Sep 9, 20186 223 3.7 107.4 198 1.6 20.2 475 0.3 8.2 0.280.2 11.0 5.7 146.9 3.9%
Sep 8, 20186 460 3.8 111.5 218 1.5 22.2 502 0.3 8.7 0.290.2 11.5 5.8 153.9 3.8%
Sep 7, 20186 529 4.3 112.6 230 1.7 23.4 519 0.4 9.0 0.300.2 12.0 6.5 157.0 4.2%
Sep 6, 20186 755 5.5 116.5 232 2.1 23.6 530 0.4 9.2 0.280.3 11.2 8.4 160.5 5.2%
Sep 5, 20187 361 5.8 127.0 286 2.4 29.1 626 0.5 10.9 0.330.3 13.1 9.1 180.1 5.0%
Sep 4, 20187 263 4.3 125.3 289 1.6 29.4 627 0.4 10.9 0.340.2 13.3 6.5 178.9 3.6%
Sep 3, 20187 279 4.1 125.5 295 1.4 30.0 648 0.4 11.2 0.340.2 13.6 6.1 180.4 3.4%
Sep 2, 20187 190 4.3 124.0 295 1.3 30.0 616 0.6 10.7 0.350.2 13.8 6.5 178.5 3.6%
Sep 1, 20187 045 4.1 121.5 284 1.5 28.8 544 0.5 9.4 0.340.3 13.3 6.4 173.0 3.7%

* 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, ICOBox Blockchain Research Center (IBRC), 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 $6.7 billion (Table 1.5.b), or 4.2% 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%
Sep 9, 20180.190.05 3.6 0.0780.052.0 4.80.624.3 530.253.1 6.7 160.0 4.2%
Sep 8, 20180.210.05 3.9 0.0840.042.2 5.10.534.6 560.223.3 6.7 167.9 4.0%
Sep 7, 20180.210.06 3.9 0.0890.042.3 5.20.654.7 570.233.3 7.5 171.2 4.4%
Sep 6, 20180.210.07 3.9 0.0880.072.3 5.20.844.7 580.353.4 9.7 174.8 5.6%
Sep 5, 20180.230.07 4.4 0.1050.102.7 6.51.015.9 680.413.9 10.6 197.0 5.4%
Sep 4, 20180.220.05 4.2 0.1030.052.7 6.50.775.9 650.313.8 7.6 195.4 3.9%
Sep 3, 20180.220.05 4.2 0.1050.052.7 6.60.726.0 660.243.8 7.1 197.2 3.6%
Sep 2, 20180.230.04 4.3 0.1070.062.8 6.70.906.0 660.273.8 7.7 195.4 4.0%
Sep 1, 20180.220.06 4.2 0.1020.072.6 6.40.755.8 620.313.6 7.6 189.2 4.0%

* 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, ICOBox Blockchain Research Center (IBRC), 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.Bitcoin Price Analysis: BTC/USD Recovers Monthly Losses; Columbia Luring Crypto Startups With Tax Breaks

[source: fxstreet.com]

September 3, 2018The Colombian authorities will support cryptocurrencies and exempt blockchain companies from taxes for five years. The country’s citizens reacted incredulously to the initiative.Market ⇑

 

Favorable
2.Coinbase Plans to Join Forces with BlackRock for Bitcoin ETF
[source: Coinspeaker]
September 7, 2018The largest US cryptoexchange will join the ranks of the companies wanting to open bitcoin ETFs. Coinbase has already begun talks with professionals to receive approval.Market ⇑

 

Favorable
3.Bitcoin ETF May Become a Reality Rather Sooner Than Later as the SEC Gets Another Crypto Supporter; Market Reaction Is Muted So Far

[source: fxstreet.com]

September 7, 2018The new member of the Commission is a politician who is a crypto supporter.Market ⇑

 

Favorable

 

1.2 Market trends

The weekly cryptocurrency and digital asset market trends from December 31, 2017, to September 9, 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 September 9, 2018, this number had already reached 1,749 (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, ICOBox Blockchain Research Center (IBRC), 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 September 9, 2018. Over this period, market capitalization dropped from $572.5 billion to $193.4 billion, i.e. by 67%. Last week (September 2-9, 2018) cryptocurrency market capitalization fell from $237.2 billion to $193.4 billion (as of September 9, 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.

Five of the past ten weeks of the third quarter saw an increase in capitalization, and five a decrease (with due account of average daily data of coinmarketcap.com, see Fig. 1.2). In July there was an increase of $20 billion, but August saw a decrease of $49 billion. On the whole, since early September capitalization has fallen by approximately $35 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 1,926. 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 decreased from 1,824 to 1749, while average capitalization decreased to $110.6 million. In total, over the past month 113 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, AiLink Token and ShineChain showed high trading volumes.

 Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

The movement toward the standardization of regulatory documents for the cryptocurrency industry and the rules for holding ICOs within the European Union could significantly reduce the risks for all participants by increasing the transparency of interactions and a lessening of uncertainty with respect to cryptocurrency startups.

The experts of the Belgian research center Bruegel have prepared a report that, according to a story in Reuters, was supposed to be presented at an informal meeting of EU ministers of finance on September 7-8 in Vienna. The report could become the basis for the standardization process within the EU.

At the same time, the EU’s new rules on money laundering may increase the number of audits on cryptoexchange platforms, the users of which will have to undergo mandatory verification. For example, on September 4 the popular instant digital cryptocurrency exchange platform ShapeShift already launched a membership program (“loyalty program”) that stipulates the collection of personal data, which may become a mandatory condition. That being said, an indisputable restriction on regulatory processes is the decentralized nature of the crypto market.

Ultimately, it must be admitted that the approval of rules and regulations could have both a positive and a negative effect on the crypto industry. Back in April the European Parliament approved a set of new measures in the fight with money laundering in the countries of the European Union, including a strengthening of control over bitcoin and other cryptocurrencies. The EU member states were given 18 months to introduce the new rules into their national legislative frameworks.

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: Wikipedia].
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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