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 19-26, 2018.

Information as of August 27, 2018

This report was created by:

This report presents data on cryptocurrency market changes during 2018. Special emphasis has been placed on an analysis of the changes that have taken place during August 2018, including over the past week (August 19-26, 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 June 1, 2018, to August 26, 2018*

Parameter1-June-181-July-18MoM, %1-Aug-18DoD, %5-Aug-18DoD, %12-Aug-18DoD, %19-Aug-18DoD, %26-Aug-18DoD, %
1Total market capitalization, USD billion331.3257.7-22.2% 277.87.8%253.8-8.6% 212.5-16.3% 212.60.0%217.52.3%
2Altcoin market capitalization, USD billion203.2147.9-27.2%144.3-2.4%132.9-7.9%104.4-21.4%102.0-2.3%101.1-0.9%
Altcoin dominance, %61.3%57.4%51.9%52.4%49.1%48.0%46.5%
3Bitcoin price, $7 500.76 411.7-14.5% 7 769.021.2%7 031.1-9.5% 6 283.7-10.6% 6 422.62.2%6 754.65.2%
Bitcoin market capitalization, USD billion128.0109.8-14.2%133.521.6%120.9-9.5%108.1-10.6%110.62.3%116.45.2%
Bitcoin dominance, %38.6%42.6%48.1%47.6%50.9%52.0%53.5%
4Ethereum price, $578.7455.2-21.3% 433.9-4.7% 407.4-6.1% 320.8-21.2% 295.7-7.8% 279.5-5.5%
Ethereum market capitalization, USD billion57.745.7-20.8%43.8-4.1%41.2-6.0%32.5-21.1%30.0-7.7%28.4-5.3%
Ethereum dominance, %17.4%17.7%15.8%16.2%15.3%14.1%13.1%
5Bitcoin Cash price, $995.7749.2-24.8% 780.04.1%696.1-10.8% 564.4-18.9% 554.9-1.7% 536.5-3.3%
Bitcoin Cash market capitalization, USD billion17.112.9-24.5%13.54.4%12.0-10.7%9.8-18.9%9.6-1.6%9.3-3.3%
Bitcoin Cash dominance, %5.2%5.0%4.8%4.7%4.6%4.5%4.3%
6Litecoin price, $118.081.5-30.9% 80.4-1.4% 73.4-8.7% 58.2-20.7% 57.2-1.7% 58.11.5%
Litecoin market capitalization, USD billion6.74.7-30.4%4.6-0.6%4.2-8.6%3.4-20.5%3.3-1.5%3.41.6%
Litecoin dominance, %2.0%1.8%1.7%1.7%1.6%1.6%1.5%
7Volume (24h) 4 crypto, USD billion**7.77.1-7.1%7.55.4%5.6-25.7%7.839.8%5.5-29.8%4.9-9.9%
Market cap 4 crypto, USD billion226.9186.7-17.7%207.911.4%190.9-8.2%162.2-15.1%163.10.5%167.02.4%
ZAK-4 Crypto index3.4%3.8%3.6%2.9%4.8%3.4%3.0%
4 crypto dominance, %68.5%72.4%74.8%75.2%76.3%76.7%76.8%
8Volume (24h) 8 crypto, USD billion**9.28.2-10.5%8.75.2%6.4-25.9%8.836.8%6.4-26.6%5.6-13.7%
Market cap 8 crypto, USD billion255.9205.9-19.5%228.210.8%209.3-8.3%177.1-15.4%177.80.4%181.62.2%
ZAK-8 Crypto index3.6%4.0%3.8%3.1%5.0%3.6%3.1%
8 crypto dominance, %77.2%79.9%82.1%82.5%83.3%83.6%83.5%

* Data as of August 26, 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 26, 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 August 19-26, 2018, is used, while the calendar week from August 20-26, 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 19-26, 2018) and as of 03:00 UTC equaled $217.5 billion (see Table 1.1). Over the same period, bitcoin dominance increased to 53.5%. The market dominance of the four and eight largest cryptocurrencies as of 03:00 UTC on August 26, 2018, equaled 76.8% and 83.5%, respectively (see Table 1.1).

The drop in cryptocurrency market capitalization compared to the start of the month equaled around $60 billion, including a drop in bitcoin capitalization by $17 billion and altcoin capitalization by $43 billion.

During the period from August 19-26, 2018, cryptocurrency market capitalization fluctuated from $202.9 billion (min) to $222.8 billion (max) (Fig. 1a), i.e. within a range of $20 billion. For its part, bitcoin capitalization fluctuated from $108.5 billion (min) to $117.4 billion (max), i.e. within a range of $9.5 billion.

Figure 1a. Cryptocurrency market capitalization since August 19, 2018

Data source: coinmarketcap.com

Figure 1b shows bitcoin capitalization (red line) superimposed on cryptocurrency market capitalization (blue line). The more intensive growth in bitcoin compared to overall market capitalization can be seen (see Table 1.1). As a result, over the week bitcoin dominance increased by 1.5%, from 52% to 53.5%, and since the beginning of May by 16.5%, from 36% to 52.5%.

Figure 1b. Capitalization of the cryptocurrency market (blue) and bitcoin (red) since August 19, 2018

Data source: coinmarketcap.com

A clear downward trend can be seen on August 23. Coinspeaker writes that China is blocking access to foreign cryptoexchanges, with cointelegraph adding that the country is also blocking accounts with news about blockchain and cryptocurrencies. CNBC also announced that the SEC had rejected nine applications to open bitcoin ETFs. All of these news items were published on August 23, resulting in a market plunge of $20 billion over a twenty-four hour period (see the news in Tables 1.3, 1.4).

The rise and fall of cryptocurrency prices over the past seven days (August 19-26, 2018)

Last week’s leaders from among the top 500 cryptocurrencies by capitalization, which showed an appreciation of more than 100%, were the projects WABnetwork (+169.93%), B2BX (+169.19%) and Digitex Futures (+136.96%). The growth of Nano (+90.78%), which has been delighting its backers for two weeks in a row now (Nano’s growth the week before last was +38.28%), should also be noted. Its trading volumes are growing, and with them its price, due in large part to positive news items such as the upgrade of the Nano Node software (Twitter), and Andy Woolmer joining the Nano team (Twitter).

During the week the following coins with fairly significant trading volumes showed an increase in price by more than 50%: Experience Points (+84.12%), Byteball Bytes (+70.56%), Dent (+57.18%), Substratum (+56.36%), and DADI (+52.60%).

During the period from August 19-26, 2018, the change in the prices of cryptocurrencies in the top 500 ranged from -54% (Paypex) to +167% (WABnetwork). The Paypex price experienced the largest fall for the second week in a row (the fall in price the week before last equaled -50%).

In addition to the Paypex price falling faster than all other coins over the week, its 24-hour trading volumes are also dropping inexorably. All of this might signal the demise of the project. For example, the last entry on the project’s official Twitter account was made on August 14. Meanwhile, WABNetwork is growing fast on the back of news on its listing this week on two cryptoexchanges (Twitter)

The price of 229 cryptocurrencies and digital assets from the top 500 showed growth, including 47 from the top 100.

Some of the most stable cryptocurrencies are those whose price is tied to the US dollar such as Tether (Bitcoin, Ethereum blockchains), TrueUSD (Ethereum blockchain), bitUSD (BitShares blockchain), and Dai (Ethereum blockchain), as well as those tied to the euro – STASIS EURS (Ethereum blockchain).

Over the past week the number of cryptocurrencies with a capitalization of more than $1 billion remained the same at 15, however the price of all of them decreased except IOTA (+6.7%), Bitcoin (+4.4%), TRON (+1.9%), 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 19-26, 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, 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 August 26, 2018Market capitalization, USD billionFactors or events that might have led to a growth in cryptocurrency prices over the past week
1NanoNANO90.78%$2.990.40The Nano price increased primarily due to positive news items such as the upgrade of the Nano Node software (Twitter) and Andy Woolmer joining the Nano team (Twitter).

Byteball Bytes also had several favorable pieces of news this week, for example the update that will make it possible to use a username instead of long addresses to perform transactions (Twitter)

Substratum also introduced an upgrade to its node (Twitter), which led to the growth in its price on August 23.

QASH grew after the announcement of the launch of the Liquid system, in which Qash plays a key role (Twitter)

Waltonchain issued a new version of its White Paper, which might have had an impact on this cryptocurrency’s price (Twitter)

Lisk pleased its backers with news on the upcoming launch of the project’s main network (Twitter)

Aion is the digital token of a 3rd generation blockchain platform. The idea behind the 3rd generation platform is to create a site where different projects can “communicate.”

Theta Token is the key tool of a platform to promote video materials.

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.

Ark wants to make blockchain technology available to everyone on the planet, even those who have no idea that they are using blockchain.

2Byteball BytesGBYTE70.56%$90.530.06
3SubstratumSUB56.36%$0.1849750.07
4QASHQASH35.79%$0.2248340.08
5WaltonchainWTC35.41%$3.770.15
6LiskLSK32.41%$4.950.54
7AionAION28.71%$0.6371450.13
8Theta TokenTHETA28.04%$0.0988550.07
9WanchainWAN26.03%$1.080.11
10ArkARK25.16%$0.8288010.09

 

A depreciation in price was seen last week for 271coins 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 26, 2018Market capitalization, USD billionFactors or events that might have led to a fall in cryptocurrency prices over the past week
1AuroraAOA-16.80%$0.0173220.06Aurora (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.

KIN (KIN) is the digital token of the Kik Messenger platform, which is a free mobile app that allows messages to be exchanged anonymously and free of charge.

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. The main idea behind the development of the Metaverse ETP was to create a platform for storage of digital assets and performance of digital identification.

FunFair is a decentralized peer-to-peer platform based on Ethereum blockchain that allows users to create an online casino in just a few clicks.

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

GXChain (previously GXShares) is a blockchain-based decentralized data exchange, designed to create a bridge between sources of data issued on various platforms.

OmiseGO is a public financial technology based on Ethereum that can be used in popular wallets to ensure peer-to-peer trading in assets in real time.

KuCoin Shares is a digital monetary unit created as a means of payment by the users of the KuCoin exchange.

Qtum (read Quantum) is a Chinese hybrid platform that connects existing blockchains to a virtual machine such as Ethereum.

2KinKIN-15.66%$0.0001080.08
3PopulousPPT-14.91%$4.500.17
4Metaverse ETPETP-14.04%$2.680.13
5FunFairFUN-13.42%$0.0166670.08
6MOACMOAC-13.40%$2.850.18
7GXChainGXS-11.02%$1.360.08
8OmiseGOOMG-9.81%$3.750.53
9KuCoin SharesKCS-9.61%$1.350.12
10QtumQTUM-8.57%$4.120.37

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

Table 1.4 shows events that took place from August 20-26, 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 20-26, 2018

Factors and events

(link to source)

Date of newsDescriptionNature of impactType of impact
1.                    Winklevoss Twins Have a Plan to Police Cryptocurrency Trading

[source: bloomberg.com]

August 20, 2018Bitstamp, Bittrex, and bitFlyer have already formed a new association, the members of which are meant to combat fraud in the cryptocurrency sphere. The alliance will begin drafting rules for the industry in September.Market ⇑

 

Favorable
2.                    Chinese Bank Issues Securities Worth $66 Million on a Blockchain

[source: coindesk.com]

August 21, 2018One of the largest banks in the PRC, Zheshang Bank, became the first institution in the country to issue this type of security.Market ⇑

 

Favorable
3.                    China’s Social Media Giant WeChat Blocks a Number of Crypto Media Accounts, Sources Say

[source: cointelegraph.com]

August 22, 2018At least four cryptocurrency and blockchain media outlets were blocked on the most popular Chinese messenger WeChat. The service accused them of distributing data on ICOs and “supporting hype.”Market ⇓Unfavorable
4.                    124 Foreign Crypto Exchanges to be Forced Out of the Country by Chinese Authorities

[source: Coinspeaker]

August 23, 2018ICOs and cryptocurrency trading are already banned in China. Now the authorities have started blocking websites: the country’s regulator found 124 trading platforms being used by citizens and announced that it would block access to them in the near future.Market ⇓Unfavorable
5.                    SEC Rejects 9 Bitcoin ETF Applications

[source: cnbc.com]

August 23, 2018The cryptocurrency market crashed on the back of this news.Market ⇓Unfavorable

 

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 $4.9 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, and the lowest was seen on August 26.

Table 1.5.a. Daily ZAK-4 Crypto index calculation (from August 1-26, 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 26, 20186 755 3.3 116.4 280 1.2 28.4 536 0.3 9.3 0.330.2 13.0 4.9 167.0 3.0%
Aug 25, 20186 720 3.3 115.8 283 1.2 28.8 535 0.3 9.3 0.330.2 13.0 5.0 166.8 3.0%
Aug 24, 20186 552 4.1 112.9 278 1.5 28.2 532 0.3 9.2 0.330.2 12.9 6.1 163.2 3.7%
Aug 23, 20186 371 3.4 109.7 272 1.3 27.6 519 0.3 9.0 0.320.2 12.6 5.2 158.9 3.3%
Aug 22, 20186 486 4.7 111.7 282 1.5 28.6 535 0.3 9.3 0.330.3 13.2 6.8 162.8 4.2%
Aug 21, 20186 301 3.4 108.5 273 1.2 27.7 514 0.3 8.9 0.320.2 12.5 5.1 157.7 3.2%
Aug 20, 20186 501 3.7 111.9 301 1.4 30.6 570 0.4 9.9 0.340.3 13.6 5.8 165.9 3.5%
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, 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 $5.6 billion (Table 1.5.b), or 3.1% of their market capitalization. Activity has fallen since the start of the month. 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 26, 20180.220.04 4.2 0.0940.032.4 5.00.364.6 580.213.4 5.6 181.6 3.1%
Aug 25, 20180.220.04 4.2 0.0940.032.4 5.10.364.6 580.193.4 5.6 181.3 3.1%
Aug 24, 20180.210.05 4.0 0.0930.042.4 4.90.624.5 580.193.3 7.0 177.5 3.9%
Aug 23, 20180.210.05 4.0 0.0900.042.3 4.70.444.3 550.213.2 5.9 172.8 3.4%
Aug 22, 20180.220.06 4.1 0.0950.062.5 4.90.574.4 570.233.3 7.7 177.1 4.4%
Aug 21, 20180.220.06 4.1 0.0930.052.4 4.70.414.3 540.193.1 5.8 171.6 3.4%
Aug 20, 20180.230.06 4.3 0.1020.052.7 5.30.564.8 580.243.4 6.7 181.1 3.7%
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, 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.ADAB Solutions to Launch World’s First Islamic Crypto Exchange

[source: cryptovest.com]

August 23, 2018Only halal cryptocurrencies, all operations according to Sharia: a company from UAE opens the first Islamic cryptoexchange in the world with a ban on tokens of amoral projects and a promise to donate 5% of profit to charity.Market ⇑

 

Favorable
2.SEC to Reconsider the Latest Rejection of Three Bitcoin ETFs

[source: Coinspeaker]

August 24, 2018The decision on nine bitcoin ETFs is not final. A representative of the American Securities and Exchange Commission has announced that the regulator may reconsider its refusal.Market ⇑

 

Favorable
3.Bank of America Files a New Blockchain Patent at USPTO

[source: ambcrypto.com]

August 25, 2018The Bank speaks out against cryptocurrencies today, but it preparing the ground for the future.Market ⇑

 

Favorable

 

1.2 Market trends

The weekly cryptocurrency and digital asset market trends from December 31, 2017, to August 26, 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 26, 2018, this number had already reached 1,801 (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 August 26, 2018. Over this period, market capitalization dropped from $572.5 billion to $214.3 billion, i.e. by 63%. Last week (August 19-26, 2018) cryptocurrency market capitalization increased slightly from $212.3 billion to $214.3 billion (as of August 26, 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.

Four of the past eight 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 $40 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 1,890. 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 1,743 to 1,801, while average capitalization decreased to $119 million. In total, over the past month 226 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, KNOW, DPRating, Credit Tag Chain, and RRCoin showed high trading volumes.

Figures 1.4 and 1.5. Forecast of total cryptocurrency market capitalization

The adjustment of the cryptocurrency market is determined to a great extent by the mechanisms of state regulation and restrictions being introduced, as well as the actions of institutional backers and major cryptocurrency market players. However, hundreds of billions of US dollars have already been poured into the cryptocurrency market and blockchain. Therefore, this adjustment is sure to end at some point. Meanwhile, for nearly six months now the benefits have been going mainly to those betting on a fall in prices. One also gets the impression that constant manipulation is taking place on the cryptocurrency market. This is connected with the problems of rapid growth, decentralization of processes, and the immaturity of international regulatory mechanisms.

The scale and potential of the cryptocurrency market are huge. Just like any economy develops in a cyclical manner, the rapidly developing crypto industry has also seen at least 4-5 clearly discernable peaks and valleys starting from 2013. Each surge gives new projects, technologies, and ideas the chance to enter the market, and each fall makes it possible to weed out scams and ineffective projects. In just 2-3 years, only 20% of all projects currently presented on coinmarketcap.com will remain, but they will form the framework and foundation for the gradual transition to the digital economy on blockchain and tokenization of the overwhelming majority of assets.

The next stage will be the formation of the market of security tokens. During this stage the economy will reach a truly global scale. An increase in the number of assets in the crypto industry and their higher level of decentralization could fundamentally change the principles of economics and international relations. In this regard, the tokenization of the economy will also be cyclical in nature, with alternating stages of growth and decline (crisis). The existence of a multitude of problems and difficulties only opens up new vistas for the talented.

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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