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The Hard Fork – Weekly Market Commentary

This Week’s Topics:
1) Ethereum trading volume falls to near 2019 low
2) $124 million project set to go live
3) Exchange website views decline YoY


Indices Round-Up

TradeBlock Index Asset1 Price ($) 7d∆2
XBX Bitcoin 9,789.58 -5.52%
XRX XRP 0.25 -5.52%
BCX Bitcoin Cash 287.05 -7.68%
ETX Ethereum 171.36 -9.69%
EOSX EOS 3.26 -9.71%
LTX Litecoin 65.51 -11.02%
XLMX Stellar Lumens 0.06 -12.02%
ZCX Zcash 44.93 -13.54%
XMRX Monero 70.00 -14.41%
ECX Ethereum Classic 6.29 -14.89%
1. Underlying asset sorted in descending order by 7 day price movers.
2. 7 day price movers monitored from 08/26/2019 06:00 ET thru 09/02/2019 06:00 ET.

7 day price movers

Digital currencies broadly declined on the week despite an ease in global recession concerns as US equities traded higher. On Wednesday, the space saw a sudden market correction as bitcoin traded down 7% in a matter of minutes. The crash coincided with little public news announcements or fundamental concerns. Following the decline, digital currencies rebounded modestly before continuing their downward slide. Among our indexed currencies, ether classic traded down the most, falling 14.89%. Conversely, bitcoin and XRP declined the least, with both losing 5.52% on the week.


Ethereum trading volumes hit 2019 low

Ether trading volumes, across US accessible exchanges, reached their second lowest monthly trading volume of 2019 in the month of August. While trading volumes had increased in the spring, on the back of accelerated price momentum, ether volumes have declined recently as price has followed suit. In the figure below we diagram ETH/USD trading volumes across the following exchanges: Bitstamp, Bittrex, Coinbase, Gemini, itBit, and Kraken. Bitcoin dominance, measured by trading volume and market cap, continues to increase relative to alt-coins, (including ether) over 2019.

Figure 1: Ether trading volumes over time

Data for chart sourced from the TradeBlock Professional Platform

Despite the slump in on-exchange trading volumes, as we detailed in a recent report, off-exchange usage of Ethereum based tokens have increased over time. In our stablecoin report published last month, we found that stablecoins following the ERC-20 standard had recently seen a surge in transactional activity.


$124 million project set to go live

Hedera Hashgraph intends to launch its mainnet on September 16th. Additionally, the project announced that a large financial corporation, FIS Group, will join its 39 member governing council in a bid to decentralize the platform’s governance. Distribution of Hedera Hashgraph’s tokens (HBAR) will begin during the mainnet launch.

Hedera Hashgraph is looking to tackle the micropayments industry with a platform that can facilitate transactions at significant scale. The project claims its public network can facilitate 10,000 transactions per second, which is higher than bitcoin and aims to come close to traditional payment processors, such as Visa, whose infrastructure has been stress tested to handle more than 65,000 transaction messages per second. In 2018, Visa processed just under 4,000 transactions per second on average. The network also plans to allow for smart contract functionality and support distributed file storage for enterprises.

Hedera Hashgraph raised capital through a series of SAFT offerings in 2018. Hedera conducted one of the top 20 largest token sales to date, bringing in nearly $125 million in capital.


Exchange website views decline YoY

Falling alt-coin trading volumes, as demonstrated in the first topic, could be hampering website visits at digital currency exchanges. We tracked monthly website visits across various digital currency exchanges over the past year. While bitcoin entered a bull market in 2019, and has traded considerably higher than in late 2018, website views across exchanges actually decreased year-over-year.

Figure 2: Exchange website visits over time

Data for chart sourced from Similar Analytics

While website visits increased in the spring of 2019, as digital currencies broadly rallied, exchanges have seen falling visits recently. The two largest exchanges, Coinbase and Binance, retained the greatest market share whereas smaller exchanges saw a considerable decrease in website visits. Both Poloniex and Bittrex saw more than 40% reduction in website visits year-over-year, whereas Coinbase and Binance saw flat to modest uptick in visits.

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