TL;DR: State of Blockchain Q2 2018
- The total cryptocurrency market cap was $254 B by June 30th, with BTC ($106 B), ETH ($44 B) and XRP ($18 B) as major currencies.
- Bitcoin price was down 11%.
- Search interest on Bitcoin, Ethereum, Blockchain, Cryptocurrency and ICO varied on small time scales but kept relatively stable averages.
- EOS had the greatest price change of +44%.
- ETH had a 653% increase in the average fee ($0.41), while Bitcoin’s average fee dropped 15% ($1.33).
- BTC hashrate grew 26%. This was relatively slower than the 47% growth in Q1.
- Bitcoin miner revenue dropped 22%, while ETH miner revenue increased 22%.
- Bitcoin’s dominance dropped from 47% to 45% relative to altcoins.
- The Lightning Network grew 77% on the number of nodes, 108% on the number of channels, 74% on the number of nodes with active channels and 200% in network capacity measured in BTC.
- Bitfinex dominates 54% of the Bitcoin trading volume, followed by Bitstamp (19%), Coinbase (18%) and Kraken (9%).
- Around 60% of the global daily Bitcoin exchange trading volume is in JPY.
Taking into consideration the following definitions about interests:
- Network and exchange interests decreased for Bitcoin, while social interest increased. Developer interest had a minor decrease.
- Developer and network interest were practically the same for Ethereum, while social and exchange interests decreased.
- Hacks and attacks in Q2 resulted in a summed loss of $89 M.
- The historical industry-wide total loss due to crypto hacks and scams currently sums up to $1.6 B.
- The most prominent example of 51% attack during Q2 was against Bitcoin Gold (loss of $18,000,000).
- The cost of a 1 hour-long 51% attack on Bitcoin is $ 456,898.00 and on ETH is $342,882.00. They are the most expensive currencies to attack.
- EOS raises $4.2 B, all-time-highest value for an ICO.
- Price per EOS token increased, reaching around 0.03 ETH.
- EOS Elected block producers are announced.
SEC statement on Ethereum
- SEC declared ETH not a security and price jumped 9% shortly after.
- EOS and Telegram are, currently, largest ICOs.
- Total ICO funding reaches $19 B. $7.3 B on the 192 ICOs during Q2.
- Total VC funding reaches $4.3 B. $1.1 B on the 178 deals during Q2.
- Total SAFT funding reaches around $700 M. $304 M on the 37 SAFTs during Q2.
- SAFT geographic concentration:
- The top ICO is EOS ($4.2 B raised), while the top VC deal is Bitmain (around $300 M raised).
- ICOs dominated funding during Q2, representing 86% of total funding.
- The United States is the country with the greatest number of Blockchain startups (around 300) and with most funding (around $4.8 B).
- The great majority of Blockchain startups have 1 to 50 employees.
- 2014 and 2017 were the years when most Blockchain startups were created.
- Enterprise live pilots were launched from Ripple, R3, JP Morgan, IBM, Hyperledger, Enterprise Ethereum Aliance, Consensys and Microsoft.
- Oracle, Salesforce, Amazon web services and Facebook start looking at possible Blockchain products/services. While Asian giants (Baidu, Alibaba, MUFG Bank, Tencent, JD) continue building their projects.
- Bitcoin is considered legal in most countries:
Most actors in Blockchain community are:
- Executives (20%), investors (12%) and developers (11%)
- Unaccredited investors (83%)
- From the US and Canada (48%)
- Male (94%)
- 26–45 years (58%)
- Liberal (27%), Conservatives (21%) and Libertarians (24%)
Most actors believe:
- Prices at the end of Q2 were undervalued and that the price decline is due to market shorts and rebounds from prior over-speculation.
- HODLing is more important than spending (70%) and almost never spend.
- Merchant adoption will increase in 2018 (72%)
- That regulated institutions will tokenize securities in 5 years.
- Cryptocurrencies conferences help foster the healthy growth of the industry (88%).
- Mining under PoW causes environmental concerns (59%).
- Check prices at least daily (84%)
- Didn’t move their position when the prices declined, they just HODLed (75%).
- Never participated in an ICO (57%).
- Feel positive about the current state of Bitcoin (70%) and Ethrereum (66%).
- Agree with the SEC statement that ETH is not a security (86%) and find that statement positive (89%).
(This summary was only possible thanks to CoinDesk’s original research. Find their presentation at https://www.coindesk.com/research/state-of-blockchain-q2-2018/.)