Q1 MARKET RESEARCH REPORT - Cryptology Blog · cryptology.com 1 market research report 4 Market nalysis Number of Unique Transactions per Day Q1 - 2018/03/31 fiffiffiffi 0 200000

MARKET RESEARCH REPORTQ1

Report is prepared by Cryptology Labs: Konstantin Zherebtcov. Head of Cryptology Labs Daria Patanina. Analyst at Cryptology Labs

2018

cryptology.com

cryptology.com 2Q1 market research report

Market Analysis

Market AnalysisContentsTotal Market Capitalization 2

Percentage of Total Market Capitalization 3

Number of Unique Transactions per Day 4

Changes in the Profitability of Mining 5

Changes in the Difficulty of Mining 6

Blockchain usage in ICO projects 7

Total Market CapitalizationQ1 - 2018

Mar

ket C

ap24

h Vo

l

Feb '18Jan '18 Mar '18 Apr '18

$200B

0

$400B

$600B

$800B

Market Cap 24h Vol coinmarketcap.com

Within the first quarter of 2018 the cryptocurrency market capitalization (market cap) dropped by more than half (54.7%). In March the market followed the negative trend. Thus, by the end of the first quarter of 2018 the market cap has dropped to $260 billion, that is, to the price level of November 2017.


Market Analysis

Percentage of Total Market CapitalizationQ1 - 2018

Perc

enta

ge o

f Tot

al M

arke

t Cap

Feb '18Jan '18 Mar '18 Apr '18

0%

10%

20%

30%

40%

50%

Bitcoin Ethereum Bitcoin Cash Litecoin Ripple Dash NEM Monero IOTA NEO Others

coinmarketcap.com

The share of Bitcoin increased from 38.6% to 45% within the first quarter. Whereas its rate decreased 50% within the first quarter, that is a bit less, than the reduction of the total market cap. This is due to a lower volatility of Bitcoin as compared to altcoins, and also due to a significant reduction of fees. As per other coins, they were in stable negative trend, caused by a protracted correction (after an incredible increase in the end of 2017) and negative news related with the tightened regulation of the crypto market in a number of countries, and a great number of hack attacks and thefts.


Market Analysis

Number of Unique Transactions per DayQ1 - 2018/03/31

Uni

que

tran

sact

ions

per

day

0

200000

400000

600000

800000

1000000

DASHZECXRPLTCETCBCHETHBTC

bitinfocharts.com

Despite the fact that the events of Q1 were mostly negative and in overall led to the decrease of crypto market cap, we see significant positive trends, that is, the cost of Bitcoin transactions significantly decreased. After the implementation of SegWit and Lightning, the possibilities of Bitcoin blockchain considerably increased.

Changes in Transaction Fee

Tran

sact

ion

fee

0

5

10

15

20

25

30

35

2018

01 01 01 05 12 19 2605 12 19 2608 15 22 29January February March

Bitcoin Ethereum bitinfocharts.com

Compare, in December 2017 the cost of transaction was $55, in the begining of 2018 it was $26, and by the end of Q 1 it has made up $1. In the second quarter the cost of transaction was fluctuating at the average level of $0.6. The decrease of the price is mostly connected with the two factors mentioned above.


Market Analysis

Changes in the Profitability of MiningBitcoin

Min

ing

Profi

tabi

lity

2018


0

0,5

1

1,5

2

2,5

3

3,5

bitinfocharts.com

Ethereum

Min

ing

Profi

tabi

lity

2018


0

0,05

0,1

0,15

0,2

0,25

bitinfocharts.com

While crypto mining is experiencing a slowdown due to Bitcoin and other cryptocurrencies yielding lower mining profits, many users doubt the profitability of mining in overall. In general, miners are becoming less and less interested to do it. The situation worsens because users stop believing in the future rise in price of coins, and this is the main thing that can now attract miners - long-term prospects.


Market Analysis

Changes in the Difficulty of MiningBitcoin

Com

plex

ity

2018


0

1T

2T

3T

4T

bitinfocharts.com

Ethereum

Com

plex

ity

2018


0

500T

1P

1,5P

2P

2,5P

3P

3,5P

bitinfocharts.com

While the growth of the difficulty of Bitcoin mining continues steadily, Ethereum’s mining has experienced a period of strong growth in January and February and has come to relative stability closer to March. In general, all instabilities in the mining of the Etherium network are related to their plan to change the POW to POS, which certainly disturbs all of their community and community of miners in the first place.


Market Analysis

Blockchain usage in ICO projects

Ethereum

279

Own

104

Other11

NEO Waves8 5

suicide.ventures

Ethereum undoubtedly remains the leader in this field, practically 70% of all ICO projects use Ethereum to set up their platforms.

8Q1 market research report

Crypto Analysis

cryptology.com

Crypto Analysis

ContentsTotal Number of ICOs and Funds Raised 8

Number of Successfully Ended ICOs 9

Geographical Distribution for ICO Projects 10

Line-Up of the Main News in the Crypto World 11

Total Number of ICOs and Funds RaisedMonthly ICO Raise vs. Number of ICOs

ICO

($) R

aise

Am

ount

Num

ber of ICO

s

Jul '17 Aug '17 Sep '17 Oct '17 Dec '17 Jan '18 Feb '18 Mar '18 Apr '18Nov '17 May '18 Jun '18

0 0

10

20

40

50

60

70

80

$1 B

$2 B

$3 B

$4 B

$5 B

$6 B

Raise Amount ($M) Count of ICOs

$5499 M

$1061 M$726 M

$2128 M$2352 M

$1741 M$1406 M

$841 M$948 M$705 M

$117 M

$568 M

60

63

696362

7376

5051

43

15

33

coindesk.com

A surprising, but easy-to-explain phenomenon is the growth in the number of ICO, despite all the deplorable state of the market. An even more interesting phenomenon is that in the first quarter of 2018 118% of funds were already attracted, compared to the whole of 2017. The new market is rapidly attracting new ideas and new people, despite the tragic completion of the fall in the prices of coins and the Total Market Capitalization in January.


Crypto Analysis

cryptology.com

Number of Successfully Ended ICOsICO Analysis for Q1 2018

These indicators are more than expected. 2017 attracted a large number of people who are not familiar with the investment market, wishing to make quick money. Therefore, many of them were disappointed, having lost money, investing in scam projects. Now, crypto investors are becoming wiser and more discriminating, which is easy to see in numbers. The second even more predictable trend is the transition of many projects from crowd sale to a private sale and work with private funds and investors.

Failed252 65%ICOs

SuccessfulICOs138 35%

coindesk.com


Crypto Analysis

cryptology.com

Geographical Distribution for ICO Projects

Canada$16,6 m

9 projects

Gibraltar$133,7 m

6 projects

Netherlands$16,8 m

6 projects Switzerland$268,2 m14 projects

Estonia$122.6 m

16 projects

Cayman Islands$96,5 m

9 projects

USA$583,8 m

59 projects

UK$99,7 m

26 projects

Singapore$468,1 m

34 projects

British Virgin Islands

$158,5 m5 projects

Australia$30 m

6 projects

China$202,1 m9 projects

Hong Kong$82,1 m

13 projects

Russia$20,8 m

13 projects

Q1

icorating.com

2018 began with key innovations: restrictions related to regulatory processes (SEC), restrictions on security-tokens. The prohibition of the ICO in countries such as China and South Korea. All this slightly shifted the registration of ICO projects to the crypto-friendly countries, but overall, did not change the whole picture.


Crypto Analysis

cryptology.com

Line-Up of the Main News in the Crypto World

January 2018

March 2018

February 2018

3.01.18Market capitalization reaches $ 700 billion for the first time

13.02.18Dubai began issuing licenses to

companies in the crypto industry (this is the first permit

for trade in crypto-currencies in the Middle East)

20.02.18Coinbase and Bitfinex

announced the integration of Segwit

26.02.18The European Union

recognized the importance of cryptocurrency for

financial markets

19.03.18On the eve of the G20, the head of the FSB said that cryptocurrencies do not pose risks to global financial stability

9.01.18Banks of India block the accounts of Indian crypto-exchanges

19.01.18SEC showed its negative attitude to ETF-derivatives for Bitcoin

6.02.18China has blocked access to all

foreign crypto-exchanges.

8.03.18Nobuaki Kobayashi, the trustee of the bankrupt MT Gox, sold its assets worth $ 400 million

26.01.18Japanese crypto-exchange Coincheck reported the largest hacking and theft of $ 500 million

31.01.18Facebook banned advertising related to the crypto industry

The first quarter of 2018 was full of negative news, directly affecting the market. A list of all the main news is given below.

cryptology.com

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Q1 MARKET RESEARCH REPORT - Cryptology Blog · cryptology.com 1 market research report 4 Market nalysis Number of Unique Transactions per Day Q1 - 2018/03/31 fiffiffiffi 0 200000