Coinspeaker partnered with ICOBox to provide our readers with this weekly analysis conducted by Professor Dima Kornilov and Dima Zaitsev devoted to cryptocurrency and digital assets markets changes that took place in February 2018, including over the last week (February 5-11, 2018).

Information as of February 11, 2018

This report was created by:

This report presents data on the cryptocurrency and ICO market changes during 2017-2018. Special emphasis has been placed on an analysis of the changes that took place in February 2018, including over the last week (February 5-11, 2018).

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

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

Table 1.1. Trends in capitalization of the cryptocurrency market and main cryptocurrencies from December 1, 2017, to February 11, 2018*

Parameter1-Dec-171-Jan-18MoM, %1-Feb-18MoM, %4-Feb-18DoD, %11-Feb-18DoD, %
1Total market capitalization, USD billion305.1612.9100.9%517.2-15.6% 447.2-13.5% 422.2-5.6%
2Altcoin market capitalization, USD billion134.7376.2179.3%344.8-8.3%292.7-15.1%277.0-5.3%
Altcoin dominance, %44.1%61.4%66.7%65.4%65.6%
3Bitcoin price, $10 198.614 112.238.4%10 237.3-27.5% 9 175.7-10.4% 8 616.1-6.1%
Bitcoin market capitalization, USD billion170.4236.738.9%172.4-27.2%154.6-10.3%145.2-6.0%
Bitcoin dominance, %55.9%38.6%33.3%34.6%34.4%
4Ethereum price, $445.2755.869.8%1 119.448.1%964.7-13.8% 859.3-10.9%
Ethereum market capitalization, USD billion42.873.170.9%10949.1%94-13.8%83.8-10.8%
Ethereum dominance, %14%11.9%21.1%21%19.9%
5Bitcoin Cash price, $1 381.82 534.883.4%1 491.1-41.2% 1 273.2-14.6% 1 255.6-1.4%
Bitcoin Cash market capitalization, USD billion23.342.884.1%25.3-41%21.6-14.6%21.3-1.3%
Bitcoin Cash dominance, %7.6%7%4.9%4.8%5.0%
6Litecoin price, $88231.7163.3%163.7-29.3% 160.4-2% 155.4-3.1%
Litecoin market capitalization, USD billion4.812.6165.6%9-28.8%8.8-1.9%8.6-2.9%
Litecoin dominance, %1.6%2.1%1.7%2%2.0%
7Smith + Crown Index18 05827 54352.5%24 709-10.3% 22 262-9.9% 19 894-10.6%
8Volume (24h) 4 crypto, USD billion9.215.771.1%17.310.2%11.9-31.1%11.8-0.9%
Market cap 4 crypto, USD billion246.1441.679.4%351.6-20.4%305.7-13%292.0-4.5%
ZAK-4 Crypto index3.7%3.6%4.9%3.9%4.0%
4 crypto dominance, %80.7%72%68%68.4%69.2%
9Volume (24h) 8 crypto, USD billion10.317.267.5%1910.2%14.2-25.3%13.0-8.4%
Market cap 8 crypto, USD billion263.5488.685.4%393.4-19.5%341.6-13.2%325.7-4.6%
ZAK-8 Crypto index3.9%3.5%4.8%4.1%4.0%
8 crypto dominance, %86.4%79.7%76.1%76.4%77.2%

* Data as of February 11, 2018 (all figures calculated at 00:00 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 (February 11, 2018), the cryptocurrencies Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, Litecoin, Stellar, and NEO are used.
Data source: coinmarketcap.com, https://www.smithandcrown.com

Since the beginning of 2018, cryptocurrency market capitalization has fluctuated by around $650 billion. Over the course of one month, capitalization has dropped from a maximum figure of $835.5 billion (on January 7, 2018) to $276.8 billion (on February 6, 2018). Last week (February 5-6, 2018) began with another fall to $276.8 billion (fig. 1), but by Friday capitalization had already grown to $458 billion. One of the reasons for the sharp decline on Monday and Tuesday was the fall in all exchange indices (see below).

The Smith + Crown Index for the week dropped to 19,894.

The dominance of the four and eight largest cryptocurrencies as of February 11, 2018, (00:00 UTC) equaled 69.2% and 77.2%, respectively, with bitcoin dominance equaling 34.4% (see Table 1.1).

Figure 1. Cryptocurrency market capitalization, February 5-11, 2018

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-1

Data source: coinmarketcap.com

 Last week (February 5-11, 2018) overall cryptocurrency market capitalization decreased slightly, which led to a depreciation in the prices of 90% of cryptocurrencies and digital assets in the top 500 cryptocurrencies. A similar trend is constantly in evidence: if the cryptocurrency market grows, so do the prices of most cryptocurrencies, and vice versa. This allows us to talk of a high level of correlation between the prices of the main cryptocurrencies, and, therefore, to conclude that the prices of cryptocurrencies are susceptible to the influence of one and the same factors.

During the analyzed period, only 50 of 500 cryptocurrencies showed an increase in price. The coins and tokens from the top 500 that showed the highest price growth are presented in figure 2.

The growth and fall of cryptocurrency prices over the past week (February 5-11, 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 top 10 cryptocurrencies that showed the largest change in price over the past week (fig. 2-3). In this regard, only those coins and tokens included in the top 500 in terms of market capitalization (according to the data of coinmarketcap.com) were considered.

Figure 2. Largest growth in prices over the last week

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-2

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

Over the past week, the number of cryptocurrencies with a capitalization of more than $1 billion dropped from 26 to 24, and only four of them showed an increase in price over this period: Ripple, Lisk, Bitcoin Gold, and Zcash.

Tables 1.2 and 1.3 show the possible factors or events that could have influenced the fluctuation in prices for certain cryptocurrencies. Table 1.4 shows the possible factors or events that could have influenced the cryptocurrency market in general.

Table 1.2. Factors and events that could have led to a growth in cryptocurrency prices over the past week

Coins and tokensSymbolGrowth in price over the week, %Average price in $ on Feb 11, 2018Market capitalization, USD billionFactors and events that could have led to a growth in cryptocurrency prices over the past week
1PlusCoinPLC489.79%0.0044330.025PlusCoin grew by almost 500% and reached a market capitalization of $25 million without the announcement of any news. However, it should be noted that the volume of trading over the past two days (February 10-11, 2018) equaled only $1,000-$2,000. With these 24-hour trading volumes, it would not be difficult to trigger such a jump.
2E-coinECN420.95%29.880.18E-coin reached a capitalization of $180 million. The price of this currency increased twice during the week, with trading volumes rising steadily from $6,000 to $520,000.
3SuperNETUNITY154.77%145.070.12SuperNET grew by 154.77% over the week. However, it should be noted that the two price spikes (February 5-6, 2018) took place during a period of minimal trading volume of around $1,000, and against the backdrop of a depreciation at the end of the previous week (February 2-4, 2018).
4EverusEVR62.99%0.3815880.01Everus has a 24-hour trading volume of approximately $5,000-$12,000, and therefore the 63% growth in price over the week can be attributed to market manipulations and volatility.
5E-Dinar CoinEDR57.90%0.0209900.02There were also no news items regarding E-Dinar Coin capable of sparking its growth, however on February 11, 2018, its price suddenly doubled with trading volumes of $30,000 to $65,000.
6MobileGoMGO50.05%0.6460560.06The MobileGo token began its gradual growth on February 6 at a price of $0.42 per token, and by February 11 it stood at around $0.65. There were several reposts of favorable news items on the project’s Twitter account.
7RevainR49.78% 2.360.44The Revain token remained in the top 10 gainers among cryptocurrencies for the second week in a row. To all appearances, this is due to the positive news regarding the token. For example, the listing of the token on one of the largest cryptoexchanges, OkeX, and its partnership with the largest Chinese wallet Bitpie were announced on its official Twitter account.
8HackenHKN36.85%5.320.02Most likely, the Hacken price increased on the back of the news on its listing on the KuCoin cryptoexchange, as well as a corrective adjustment after a serious fall in the price last week (January 29-February 2, 2018).
9CHIPSCHIPS33.68%0.3842060.01This week CHIPS had a 24-hour trading volume of $200 to $2,000, meaning that the 33% growth could be due to volatility.
10OysterPRL29.86%0.9605670.07The Oyster price increased by 30%, perhaps due to the favorable news on the launch of a new project, the tokens of which were distributed among all Oyster token holders.

Figure 3. Largest fall in prices over the past week

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-3

The fall in the prices of most cryptocurrencies over the past week by up to 15% is perfectly understandable and has to do with overall trends on the cryptocurrency market.

Table 1.3. Factors and events that could have led to a fall in cryptocurrency prices over the past week

Coins and tokensSymbolFall in price over the week, %Average price in $ on Feb 11, 2018Market capitalization, USD billionFactors and events that could have led to a fall in cryptocurrency prices over the past week
1BitConnectBCC64.71%2.220.02The BitConnect price continued the freefall that began after the announcement of the closing of the project by its founders.

The fall in the Populous token price was not directly attributable to unfavorable news items, and was probably caused by an adjustment after its recent growth, the overall negative market trends, or the token’s heightened volatility.

Odyssey, Profile Utility Token and OriginTrail began to be traded on exchanges only 2-3 weeks ago. Heightened volatility and a fall in price is not uncommon during the first month of trading (for example, due to the desire of the market participants who supported the project during its early stages to secure their gains by selling their tokens).

No negative news items were seen regarding the Nano, Vibe and Qbao coins, and the Qbao project even announced the upgrade of its platform, but this did not help them to avoid a drop in price due to unfavorable trends on the market as a whole. The fall in the price for these three coins can be put down to an adjustment after a sharp increase.

2PopulousPPT56.19%25.060.93
3HEATHEAT52.02%0.2723440.01
4ColossusCoinXTCOLX48.45%0.0022780.02
5VIBEVIBE47.53%0.4234680.08
6NanoXRB44.65%8.731.16
7Profile Utility TokenPUT43.87%0.7978170.02
8OriginTrailTRAC43.31%0.1726050.04
9QbaoQBT42.63%0.5477840.04
10OdysseyOCN39.7%0.0197980.04

 

The consistent changes in the Dow Jones Industrial Average (DJIA) index and the bitcoin price over the past two weeks suggests that there is a certain connection (fig. 4). Naturally, volatility is much higher on the cryptocurrency market than on the stock market. For example, since January 30, 2018, the bitcoin price has fallen by 24.12%, while the DJIA has dropped by 7.39%. Nonetheless, this is an extremely notable drop for the stock market. On February 5 the Dow Jones index fell by 4.6% in one day, i.e. by more than 1,000 points, which is the largest one-day drop in the US’s main stock market index in the last 10 years.

The decline in the Dow Jones index was especially pronounced on February 5-6, 2018, and is attributed to an expected increase in the interest rate. On February 2, 2018, the US Department of Labor issued employment and wage statistics that were higher than expected. The published data may attest to an increase in consumer spending and could lead to a growth in inflation. To prevent possible inflation, the US Federal Reserve System will be forced to increase interest rates. The risk of an increase in interest rates has a fairly strong impact on the behavior of investors, who usually try to secure their profit in these situations.

Following the DJIA, similar behavior was seen on the S&P 500, the Nasdaq Composite, the Nikkei 225, and a number of other indices, which fell from November 6-10, 2018. The price of oil also fell.

Figure 4. Dow Jones Industrial Average (DJIA) Index and bitcoin price since January 30, 2018

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-4

Table 1.4 shows events that took place from February 5-11, 2018, and 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, February 5-11, 2018

Factors and events

(link to source)

Date of newsDate of event*DescriptionNature of impactType of impact
1.                    Bitcoin Price Drops Below $7,000 as China Blocks Access to Foreign Crypto Exchanges [source: Coinspeaker]February 6, 2018February 6, 2018China has blocked access to foreign cryptocurrency exchanges, which will result in the complete isolation of Chinese traders and have a negative impact on the entire market.Market ⇓

 

Unfavorable
2.                    Billionaire Trader Mike Novogratz Raises $250M for Crypto Merchant Bank [source: Coinspeaker]February 8, 2018February 8, 2018Billionaire trader Mike Novogratz raised $250 million for the creation of a new cryptobank which is meant to be an equivalent of Goldman Sachs in the crypto industry. This is good news, which could tip the scales for many financiers and institutional backers in favor of investments in cryptocurrencies.Market ⇑Favorable
3.                    SFC Warns of Cryptocurrency Risks [source: Sfc.hk]February 9, 2018February 9, 2018The SFC of Hong Kong has sent seven of the country’s cryptoexchanges a letter regarding the illegal issue and trading in tokens that have been recognized as securities. Some of the cryptoexchanges immediately ceased trading in these tokens.Market ⇓

 

Unfavorable

* Event already took place

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. For example, on February 6, 2018, the 24-hour trading volume (Volume 24h) for the four dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, and Ripple) exceeded $23 billion (Table 1.5.a). The value of the ZAK-4 Crypto equaled 10.3%, which attests to the extremely high liquidity and market dynamism of the dominant cryptocurrencies. The value of the index increased during the downward adjustment of the cryptocurrency market (February 6, 2018), i.e. the daily turnover of cryptocurrencies exceeded 10% of their market capitalization.

Table 1.5.a. Daily ZAK-4 Crypto index calculation (from February 1, 2018, to February 11, 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 cryptoMarket cap 4 cryptoZAK-4 Crypto index
Date$USD billionUSD billion$USD billionUSD billion$USD billionUSD billion$USD billionUSD billionUSD billionUSD billion%
Feb 11, 20188 616 6.1 145.2 859 2.5 83.8 1 256 0.7 21.3 1.072.6 41.6 11.8 292.0 4.0%
Feb 10, 20188 720 7.8 147.0 882 2.9 86.1 1 312 0.7 22.2 0.954.7 37.0 16.1 292.2 5.5%
Feb 9, 20188 272 6.8 139.4 818 2.5 79.8 1 274 1.1 21.6 0.801.7 31.1 12.1 271.9 4.5%
Feb 8, 20187 638 9.3 128.7 756 3.7 73.7 952 2.2 16.1 0.730.9 28.4 16.2 247.0 6.6%
Feb 7, 20187 755 9.2 130.7 790 3.9 77.0 971 0.9 16.5 0.771.1 30.2 15.1 254.4 5.9%
Feb 6, 20187 052 14.0 118.8 708 6.5 69.0 891 0.8 15.1 0.712.4 27.5 23.7 230.4 10.3%
Feb 5, 20188 271 9.3 139.3 835 4.3 81.3 1 160 0.6 19.7 0.831.3 32.2 15.4 272.5 5.7%
Feb 4, 20189 176 7.1 154.6 965 3.0 94.0 1 273 0.7 21.6 0.911.2 35.6 11.9 305.7 3.9%
Feb 3, 20188 852 7.3 149.1 919 3.2 89.5 1 194 0.5 20.2 0.892.0 34.8 12.9 293.6 4.4%
Feb 2, 20189 142 12.7 154.0 1 036 6.7 100.8 1 273 0.9 21.6 0.963.5 37.5 23.9 313.8 7.6%
Feb 1, 201810 237 10.0 172.4 1 119 5.3 109.0 1 491 0.7 25.3 1.161.4 45.0 17.3 351.6 4.9%

* Data as of February 11, 2018, 00:00 UTC
** Data source: coinmarketcap.com

The 24-hour trading volumes (Volume 24h) for the eight dominant cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash, Ripple, Litecoin, Stellar, NEO, and Cardano) equaled $13 billion at the end of last week (Table 1.5.b), i.e. 4% 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)NEO (NEO)Litecoin (LTC)8 Crypto
 Price OpenVolume (24h)Market capPrice OpenVolume (24h)Market capPrice OpenVolume (24h)Market capPrice OpenVolume (24h)Market capVolume (24h)Market capZAK-8 crypto index
Date$USD billionUSD billion$USD billionUSD billion$USD billionUSD billion$USD billionUSD billionUSD billionUSD billion%
Feb 11, 20180.410.09 7.5 0.4050.310.5 110.50.267.2 1550.58.6 13.0 325.7 4.0%
Feb 10, 20180.400.23 7.3 0.3871.010.0 117.20.367.6 1630.69.0 18.2 326.2 5.6%
Feb 9, 20180.360.14 6.6 0.3530.49.1 112.00.217.3 1500.78.3 13.6 303.2 4.5%
Feb 8, 20180.340.12 6.4 0.3440.38.9 104.10.556.8 1380.97.6 18.1 276.6 6.5%
Feb 7, 20180.370.19 6.8 0.3670.79.5 105.10.576.8 1420.87.9 17.3 285.4 6.1%
Feb 6, 20180.340.52 6.2 0.3311.38.6 84.10.665.5 1281.17.0 27.3 257.7 10.6%
Feb 5, 20180.380.34 7.1 0.3850.710.0 107.60.317.0 1490.88.2 17.6 304.8 5.8%
Feb 4, 20180.430.23 7.9 0.4340.811.2 122.20.207.9 1601.08.8 14.2 341.6 4.1%
Feb 3, 20180.410.28 7.5 0.4011.410.4 121.00.267.9 1310.77.2 15.6 326.6 4.8%
Feb 2, 20180.460.40 8.4 0.4191.410.9 125.60.558.2 1430.87.8 27.1 349.1 7.8%
Feb 1, 20180.540.17 10.0 0.5160.613.4 146.00.369.5 1640.59.0 19.0 393.4 4.8%

 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.Most Korean Crypto Exchanges Unable to Use Government-Mandated System [source: Bitcoin.com]February 6, 2018So far, only four exchanges (Bithumb, Upbit, Coinone, and Korbit) have begun to use the new system for registration of the real names of account owners. The non-performance of the regulator’s requirements by the other exchanges could lead to serious consequences and have a negative effect on the market, as many players will be under the threat of punishment.MarketUncertain
2.Reply to Parliamentary Question on Banning the Trading of Bitcoin Currency or Cryptocurrency [source: mas.gov.sg]February 7, 2018After a study of cryptocurrencies by the relevant authorities of Singapore, a highly placed official announced that the government does not yet see the need to ban trading in cryptocurrencies.Market ⇑Favorable

 

    1.2 Market trends

The weekly cryptocurrency and digital asset market trends from October 1, 2017, to February 11, 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 October 1, 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 January 1, 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 October 1, 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 October 1, 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 February 11, 2018, this number had already reached 1,466.
Average market capitalization, USD millionFig. 1.3This figure reflects the growth in the average cryptocurrency and digital asset market capitalization from October 1, 2017, i.e. the ratio between the market capitalization of all cryptocurrencies and digital assets and their number.
Forecast of total cryptocurrency market capitalizationFig. 1.4, 1.5This figure shows the time trend (forecast) change in cryptocurrency and digital asset market capitalization.

* Data as of February 11, 2018, 00:00 UTC
** The figures below present average data for 24 hours
Data source: coinmarketcap.com

Figure 1.1. Total cryptocurrency market capitalization*

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-1-1

* Average daily data (according to the data of coinmarketcap.com).

Figure 1.1 shows a graph of the weekly cryptocurrency market change from October 1, 2017, to February 11, 2018. Over this period, market capitalization increased from $146.9 billion to $396.7 billion, a growth of 2,141% relative to the start of 2017. Over the first week of January 2018, total market capitalization exceeded $800 billion for the first time, but over the next five weeks (January 8-February 11, 2018) total market capitalization fell from $822.5 billion to $396.7 billion (as of February 11, 2018, based on the average figures from coinmarketcap.com), i.e. by more than half.

 Figure 1.2. Change in market capitalization

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-1-2

Despite the significant growth in cryptocurrency market capitalization in 2017, the market is susceptible to sudden and drastic fluctuations. The highest growth rate in Q4 2017 was around $200 billion, or 54%, during the week of December 17-24, 2017. During the first week of January, market capitalization increased by approximately $250 billion, or 44%, but over the following five weeks decreases of approximately $100 billion, $130 billion, $20 billion, $136 billion, and $46 billion, respectively, were seen (with due account of average daily data, see fig. 1.2).

Figure 1.3. Number of cryptocurrencies and digital assets

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-1-3

Data source: coinmarketcap.com

The total number of cryptocurrencies and digital assets listed on exchanges has grown since the start of October from 1,091 to 1,466. Their number decreased by 16 over the past week, from 1,482 to 1,466. In this regard, over the past five weeks average cryptocurrency and digital asset capitalization has decreased from $607 million to $270.6 million.

 Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-1-4

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-1-5

The market has been falling for five weeks in a row now. Capitalization has been more than halved. This is an ample adjustment after the headlong growth in December and early January, after which we can expect a bullish trend on the cryptocurrency market.

Even the company J.P. Morgan, in its report dated February 8, 2018, acknowledged cryptocurrencies as the “face of the innovative maelstrom”, despite the earlier declaration of company head Jamie Dimon that he believes bitcoin is a “fraud”. Meanwhile, the trust banks of Japan have been allowed to expand the methods of use of backers’ funds when entering the cryptocurrency sector. In this way, they will ensure a higher level of protection of transaction participants, including from the risks of fraud and bankruptcy of exchanges, through the professional management of contributed assets.

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

    2.1 Brief overview of the ICO market

Table 2.1 shows the development trends on the ICO market since 2017. Only popular and/or successfully completed ICOs (i.e. ICOs which managed to collect the minimum declared amount of funds) and/or ICOs listed on exchanges were considered.

Table 2.1. Aggregated trends and performance indicators of past (completed) ICOs1

IndicatorTotal

2017

December

2017

January

2018

Feb 1-4,

2018

Feb 5-11,

2018

Total amount of funds collected, USD million6 037.71 627.11 613.7319.7329.3
Number of companies that completed an ICO138274991216
Maximum collected, USD million (ICO name)258

(Hdac)

258

(Hdac)

100

(Envion)

46

(IUNGO)

104.5

(Fusion)

Average collected funds, USD million15.82216.326.620.6

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

The data for January and early February were adjusted to account for the appearance of more complete information on past ICOs. Last week (February 5-11, 2018) the amount of funds collected via ICOs equaled $329.3 million. This amount includes the results of the 16 most successful completed ICOs, with the largest amount collected equaling around $104.5 million (Fusion ICO). The average collected funds per project equaled $20.6 million. More detailed information on the main ICOs, including the 16 completed over the past week, is given in Tables 2.2 and 2.3.

Table 2.2. Amount of funds collected and number of ICOs

MonthCollected,

$ million

Number of ICOs*Average collected,

$ million

January 20174.531.5
February9.751.94
March4.731.57
April127.8177.52
May168.41610.53
June995.23033.17
July461.32915.91
August330359.43
September730.34516.23
October794.26811.7
November683.55013.7
December1 627.17422
January 20181 613.79916.3
February 1-4, 2018319.71226.6
February 5-11, 2018329.31620.6
Total8 300.350916.3

* Data source: tokendata.io, icodrops.com, icodata.io, coinschedule.com
Information on funds collected is not available for all ICOs (information for last week is tentative and may be adjusted).

Table 2.2 shows that the largest amount of funds was collected via ICOs in December 2017 and January 2018. The highest average funds collected per ICO equaled $33.17 million, and was seen in June 2017.

The data for last week (February 5-11, 2018) may be adjusted as information on the amounts of funds collected by completed ICOs is finalized.

Figure 2.1. Trends in funds collected and number of ICOs since the start of 2017

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-2-1

     2.2 Top ICOs

Table 2.3. Top 10 ICOs in terms of the amount of funds collected (February 5-11, 2018)

Name of ICO***Category*Collected, $ millionDate
1FusionFinance104.5February 11, 2018
2DatawalletContent Management39.4February 6, 2018
3CurrentCommerce and Advertising36February 7, 2018
4RefereumGaming & VR32.3February 8, 2018
5GBXFinance27February 8, 2018
6Play2LiveGaming & VR18.1February 6, 2018
7Insights NetworkContent Management17.4February 9, 2018
8DetherPayments13.4February 9, 2018
9GlobitexFinance12.3February 11, 2018
10COPYTRACKContent Management11.1February 10, 2018
 Top 10 ICOs311.5 
 Total funds collected from February 5-11, 2018 (16 ICOs)**329.3 
 Average funds collected 20.6 

* The category was established based on expert opinions.
** When compiling the lists of top ICOs, information from the websites tokendata.io, icodrops.com, icodata.io, coinschedule.com and other specialized sources is used.
*** Only popular and/or successfully completed ICOs (i.e. ICOs which managed to collect the minimum declared amount of funds) and/or ICOs listed on exchanges were considered. Information may be incomplete for some ICOs (for instance, the amount of funds collected).

Table 2.3 shows the top 10 ICOs which were successfully completed during the period February 5-11, 2018. The leader for the week was the Fusion project, which planned to collect $42.2 million (51,200 ETH), but actually collected 2.5x more. The tokens were purchased without the performance of KYC procedures, and therefore the shares will be recalculated pro rata to the funds collected, and that part of the funds collected that exceeds the initially announced goal will be returned to contributors. Therefore, technically one can take the view that the amount of funds collected equaled the planned $42 million.

Fusion is a public blockchain intended to ensure network-to-network connectivity and devoted to the creation of an inclusive crypto finance platform that will make it possible to transfer tokens from one network to another and perform their exchange. The special feature of the project is the use of a hierarchical hybrid consensus mechanism (HHCM), which uses PoS consensus at the first level of entry/contract processing, and PoW consensus at the second level.

Figure 2.2 presents the ten largest ICOs completed last week.

Figure 2.2. Top 10 ICOs in terms of the amount of funds collected (February 5-11, 2018)

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-2-2

     2.3 Top ICOs in their categories

The list of top ICOs by category is compiled with due account of the categories of the leading ICOs for the week.

Table 2.4. Top 10 ICOs in terms of the amount of funds collected, Finance category

Name of ICOCategory*Collected, $ millionDateToken performance
1FusionFinance104.5 (42)February 11, 2018n/a
2BankexFinance70.6December 28, 20170.49x
3Olympus LabsFinance60.3January 14, 20180.32x
4SALTFinance48.5August 15, 20174.71x
5SwissBorgFinance50.9January 9, 20180.62x
6KyberNetworkFinance48September 15, 20177.41x
7NAGAFinance45.3December 16, 20170.91x
8BloomFinance43.8January 1, 20180.7x
9PeerBanksFinance42.6September 22, 2017n/a
10FuzeXFinance36.2February 2, 2018n/a

* When compiling the lists of top ICOs, information from the websites tokendata.io, com, icodata.io, coinschedule.com and other specialized sources is used. The ICO project categories correspond to the information from the website coinschedule.com. If there is no information on the website concerning the project category at the time of compilation of this analytical report, the category is determined by experts.
** The top projects in this category completed in January-February 2018 are highlighted in red.

The leader of the week and the category was the Fusion project. The token has already been listed and is being traded on the BiBox exchange (symbol FSN). The price did not fall on the exchange, which is often the case at the start of trading (especially in view of the overall negative market trends), but on the contrary increased and is currently higher than its token sale price (0.0025 ETH).

At present, all projects from the top 10 in the Finance category have a token performance indicator of 0.32x to 7.41x. Half of the projects from the top 10 completed their ICOs in January-February 2018. The KyberNetwork exchange listing can be considered one of the most successful ICOs, as this project has a current token price to token sale price ratio of 7.41x. When considering this indicator, it is important to remember that the KyberNetwork ICO was completed on September 15, 2017, i.e. the 7.41x growth took place over more than four and a half months. The market capitalization of KyberNetwork currently exceeds $375 million.

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

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-2-3

In February the ICOs of three projects that can be assigned to the Content Management category were also completed.

Table 2.5. Top 10 ICOs in terms of the amount of funds collected, Content Management category

Name of ICOCategory*Collected, $ millionDateToken performance
1DatawalletContent Management39.4February 6, 2018n/a
2Insights NetworkContent Management17.4February 9, 2018n/a
3COPYTRACKContent Management11.1February 10, 2018n/a
4Hubii NetworkContent Management7.46September 7, 20173.29x
5AuthorshipContent Management4.16September 14, 2017n/a
6LunyrContent Management3.35April 28, 201711.2x
7WYSContent Management2.5January 31, 2018n/a
8BlockpoolContent Management1.75June 30, 20173.14x
9PublicaContent Management1.14November 16, 20177.51x
10CreativecoinContent Management0.28May 1, 201710.05х

* When compiling the lists of top ICOs, information from the websites tokendata.io, com, icodata.io, coinschedule.com and other specialized sources is used. The ICO project categories correspond to the information from the website coinschedule.com. If there is no information on the website concerning the project category at the time of compilation of this analytical report, the category is determined by experts.
** The top projects in this category completed in January-February 2018 are highlighted in red.

From among the top 10 projects in the Content Management category, the Lunyr and Creativecoin projects currently have good token performance indicators. Their market capitalization currently exceeds $41 and $5 million, respectively.

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

weekly-cryptocurrency-and-ico-market-analysis-february-5-11-2018-figure-2-4

Over the last week (February 5-11, 2018), 16 ICO projects were successfully completed, each of which collected more than $100,000, with a total amount of collected funds of more than $330 million. The leader of the past week was the Fusion project ($104.5 million). The total amount of funds collected by a number of ICOs failed to reach even the $100,000 mark (the information for some projects is still being finalized).

The Glossary is given in Annex 1.

Annex 1 – Glossary

 

Key termsDefinition
Initial coin offering, ICOA form of collective support of innovative technological projects, a type of presale and attracting of new backers through initial coin offerings to future holders in the form of blockchain-based cryptocurrencies (tokens) and digital assets.
Market capitalizationValue of an asset calculated based on its current market (exchange) price. This economic indicator is used to assess the total aggregate value of market instruments, players, and markets. [Source: https://en.wikipedia.org].
Cryptocurrency market capitalizationAggregate market value of cryptocurrencies circulating on the market.
Total cryptocurrency market capitalizationCryptocurrency and digital asset market capitalization, i.e. the aggregate market value of all cryptocurrencies and digital assets circulating on the market.
Token rewardToken performance (current token price / token sale price during the ICO), i.e. the reward per $1 spent on buying tokens.
DominanceMarket share, i.e. the ratio of market capitalization of a particular cryptocurrency (token) to total cryptocurrency market capitalization. Expressed as a %.
Token sale price

Current token price

Token sale price during the ICO.

Current token price.

Not Mineable

 

A coin that is not mineable. The term is used for cryptocurrencies (tokens) which cannot be mined or issued through mining.
Pre-minedA pre-mined coin. The term is used for cryptocurrencies (tokens) which are issued through mining, and a certain number of coins (tokens) have been created and distributed among certain users at the start of the project.
The rate of market increase (as a % compared to the beginning of the year)The rate of market increase (as a % compared to the start of the year), i.e. by how many % points did market capitalization increase compared to the start of the year.
The growth rate of the market (as a % compared to the beginning of the year)The market growth (as a % compared to the start of the year), i.e. by how many times did market capitalization grow compared to the start of the year.
Increase in market capitalization (in USD million compared to the previous period)Increase in cryptocurrency and digital asset market capitalization (in USD million compared to the previous period), i.e. by how many USD million did market capitalization increase over the period.
The rate of market increase (as a % compared to the previous period)Rate of market increase (as a % compared to the previous period), i.e. by how many % points did market capitalization increase over the period.
The market growth rate (as a % compared to the previous period)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 time when this glossary was compiled over 1,070 cryptocurrencies and digital assets were circulating on the market.
Average market capitalizationAverage market capitalization, i.e. the ratio of the market capitalization of all cryptocurrencies and digital assets to their number.
Token return Performance of funds spent on buying tokens or the ratio of the current token price to the token sale price, i.e. performance of $1 spent on buying tokens during the token sale, if listed on an exchange for USD.
ETH reward – current dollar value of $1 spent on buying tokens during the token saleAlternative performance indicator of funds spent on buying tokens during the ICO or the ratio of the current ETH rate to its rate at the start of the token sale, i.e. if instead of buying tokens $1 was spent on buying ETH at its rate at the start of the token sale and then it was sold at the current ETH rate.
BTC reward– current dollar value of $1 spent on buying tokens during the token saleSimilar to the above: Alternative performance indicator of funds spent on buying tokens during the token sale, i.e. if instead of buying tokens $1 was spent on buying BTC at its rate at the start of the token sale and then it was sold at the current BTC rate.
Token/ETH reward This ratio describes the backer’s economic benefits and disadvantages resulting from buying tokens during the token sale relative to buying ETH. If the result is over 1, the backer spent his funds more efficiently on buying tokens than if he were to have spent his funds on ETH.
Token/BTC reward This ratio describes the backer’s economic benefits and disadvantages resulting from buying tokens during the token sale relative to buying BTC. If the result is over 1, the backer spent his funds more efficiently on buying tokens than if he were to have spent his funds on BTC.
ZAK-n Crypto indexThe index is calculated as a percentage and represents a ratio between the 24-hour 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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