📊 Huobi Research Report: Huobi Data Analytics weekly, an overview
Founded in April 2016, Huobi Research of blockchain application (Huobi Research), currently consists of 24 highly educated team members, that analyze blockchain projects and market statistics. The team is employed under the supervision of Huobi Research Director, Hubery Yuan.
Huobi Research is a subsidiary of Huobi Global, just like digital asset exchanges Huobi Pro and HADAX. Huobi Research publishes industry reports, monthly and weekly reports about the cryptocurrency market. The weekly report on the cryptocurrency industry, is titled: Huobi Blockchain Big Data Weekly Insights.
The information in this article is based on the Huobi Research Report Big Data Insights Vol. 2, from the 13th until the 20th of June.
✅ To keep crypto-enthusiasts and industry professionals up-to-date about the current cryptocurrency market, trading patterns as well as understanding the market dynamics, Huobi Research publishes a weekly cryptocurrency update report, in which they publish an overall overview of different market aspects. You can read the weekly reports by clicking on this link. Among others, the weekly report entails Concentration of Wealth on BTC network, ETH data, Key Words of Reddit, Social Media Data, BTC and ETH transactions per second (TPS) and Github Code Activity.
One of the main items in last weeks’ report was the part about the Secondary Market Performance where Huobi Research states:
‘The cryptocurrency market seemed to put a break on its current downtrend’
Source: Huobi Data Analytics Weekly.
With this statement Huobi Research implies, it believes the current bear market is halted to a stop, which means we are either in a consolidation (sideways pattern) or we are going back up again (bull market).
✅ Last week top gainers were TRON (+ 7%) and ETH (+2%), while the biggest losers were IOTA (-13%), LTC (-7%) and NEO (-9%). In the image above you can see the Price Volatility of the previous week, with IOTA having the highest price volatility and Bitcoin having the lowest.
The biggest market turnover projects last week were EOS (80%), TRX (49.4%) and Bitcoin 29.3%). While Stellar (7.8%) Ripple (10.6%) and Cardano (16.1) have the smallest turnover last week.
As you can see in the graph below, the blue line is the ROI for the time period in the report and the red line states the turnover for that same time period.
✅ Price correlation between the top 10 digital assets as stated on coinmarketcap.com do not move in tandem anymore, according to the Huobi Research weekly cryptocurrency update.
To calculate the price movements between top 10 digital assets, Huobi Research incorporates the Pearson’s correlation coefficient theory, using logarithmic-returns and volume-weighted average daily prices over the previous week.
In the matrix below you can see an overview of the weekly coin correlation. In which you see the strongest correlations in price are between IOTA/XRP (0.93), IOTA/NEO (0.92) and IOTA/BCH (0.91), while the weakest correlations are between IOTA/ETH (0.12), EOS/NEO (0.22) and EOS/IOTA (0.28).
✅ While Huobi Research states they believe that the cryptocurrency market is momentarily done with the price decline, my personal opinion is slightly different.
My personal opinion is, the digital asset market hasn’t seen the absolute bottom yet, before changing directing and moving up. I support my (unpopular) opinion with two examples:
➡️ For one, the summer holiday season is just around the corner and that’s historically seen not the best time for trading, with the low volume a big seller can more easily produce a sell-off.
➡️ I also believe the Bitcoin price should be really low for the majority of the people to even consider stepping back in. Anywhere between 1,000 USD — 3,000 USD will be a great price for BTC to get a renewed hype of people wanting to get in on the FOMO train, to a new All-Time-High.
These are just my personal opinions and my educated guesses, because other than the big players manipulating the market no-one knows what will happen to the prices of Bitcoin and other cryptocurrencies.
Do I hope I’m wrong? Absolutely, because I firmly believe in the underlying technology and expect it to disrupt a lot of industries. On the other hand I also think its just too early to assign such a high valuation to these projects, without the majority of them having working projects with a real world use case yet.
I do believe there are a few projects that can outperform the market. For instance blockchain projects that can solve the blockchain trilemma (scalability, security and efficiency). A high throughput blockchain, that can easily and massively deploy DApps can become extremely successful if it can achieve a lot of TPS.
I believe Thunder Token™ and Seele (digital asset exchange Huobi Korea recently announced its listing Seele) have a very good chance of solving these emerging blockchain issues as they are backed by a team of respected scientists that did extensive research in this field. Only time will tell whether they will actually be able to succeed in developing the next generation, high throughput blockchain.
If you don’t have a Huobi Pro trading account yet and you would like to sign-up, here is my sign-up link: