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The State of Blockchain Q4 2017 (report review)

by Administrator, on Feb 23
CoinDesk has released The State of Blockchain Q4 2017 report. Innmind offers its readers an overall summary of the report.
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CoinDesk, the leading digital media, events and information services company for the digital asset and blockchain technology community, has released The State of Blockchain Q4 2017 report - the ultimate, must-read analysis on the growth of blockchain technology.

Innmind offers its readers an overall summary of the report.

Q4 2017 Overall Summary

  • Multiple executive regulators announced aggressive action, markets boom to all-time high above $170bn.
  • Often debated soft fork resulted in segregated witness, opened Bitcoin to cryptographic innovations; hard fork resulted in big block Bitcoin Cash.
  • ICOs raise $1.24bn, led by Filecoin, Tezos. Coinbase raises $100mn: puts valuation at $1.6bn, becoming the industry’s first unicorn.
  • Cryptocurrencies see development of buy side, and sophisticated analysis for valuations.
  • Major law firms develop blockchain specialties.
  • Hedge against monetary policy was BTC’s best quality; 83% checked prices everyday (50%) or compulsively, every hour (33%).
  • Hash rate, >1MB Bitcoin blocks; ethereum hit a record for blockchain transactions.

Trends in public blockchain

  • Total cryptocurrency market cap breaks $600bn, nearly as much as the GDP of Argentina.
  • Fees moderately increase in general, but soar for BTC.
  • Many cryptocurrencies reached all time highs, notably BTC at almost $20k and ETH at almost $1k
  • Bitcoin dominance falls below 40% after a rebound above 50% early in the quarter
  • CryptoKitties’ popularity slowed down the ethereum network but showed promise for future developments.
  • Bitcoin Cash solidifies within the top 10 market cap with a hashrate that surpassed BTC’s for one day in November.

Trends In enterprise blockchain

  • R3 adds members, launches, Corda version 2.0. Corda becomes the first DLT to be accessible on Amazon Web Services (AWS).
  • Enterprise Ethereum Alliance adds members & 3 new working groups.
  • We.Trade, founded by 9 banks, aims to ease European domestic and cross-border trade with DLT made by IBM.
  • Hyperledger members CME Group, Deutsche Borse Group, R3, downgrade their membership to general. 15 other organizations cancel their membership.

Trends Investment

  • Total raised by ICOs hits $3.23bn in Q4, with VC amounting to $200mn. Q3 to Q4 growth less spectacular when shown in ETH (+56%) vs. USD (+146%).
  • Forks have raised 8x more than ICOs. Token generating events (TGE) are split between $44bn in forks vs. $5bn in ICOs cumulatively.
  • Bitcoin futures see high interest but low volume, with small traders going long and large traders going short.

Trends in Regulation & Government

  • The CFTC approved CME & Cboe’s launch of bitcoin futures contracts. - South Korea sees higher levels of regulation on trading.
  • Bitfinex & Tether become targets of US regulators after suspicious activity results in subpoena.
  • Russia moves to define regulatory environment with submission of new bill.

Q4 2017 Public Blockchain Summary

 

 

  • Public blockchain assets rallied 3x, over $75bn in value over the quarter.
  • Fees generally increased but BTC saw record- breaking fees and congestion in Q4.
  • Bitcoin ceded it’s +50% Q2 to Q3 comeback.
  • All major cryptocurrencies are up approximately 1,000%.
  • Google searches for blockchain terms see new highs, especially in December.
  • Transactions on major blockchains increased, ethereum broke all-time transaction records.

Bitcoin

  • Bitcoin almost breaks $20,000: This quarter saw multiple all time highs that ranged from $5k to $19k.
  • Fork postponed:The 2 MB block size increase was called off due to lack of support.
  • Transaction fees soared: Average transaction fees rose about 300% from Q3.
  • Global trading volume continued growth: JPY, USD solidify large shares.
  • Transactions rebound: The number of transactions rebounded about 30% from Q3 dip.
  • Hashrate up 60% to new all time high: Network security continued to grow but BCH had more at one day in November.

Ethereum

  • Hit all time high of almost $1k: Ethereum skyrocketed, along with other cryptos, especially in December.
  • Successful Byzantium hard fork: Ethereum successfully completed the Byzantium hard fork, verified zk-snark proof among other developments.
  • Network Hashrate continues rise: Hashrate grew by about 40% continuing the growth trend.
  • Transaction Volume bursts in Q4: Ethereum transaction volumes continue to outpace BTC by almost 200%.
  • Exchange Volumes Nearly Double: Ethereum’s USD exchange volume grew by almost 2x on average for Q4, but suffered some drop-off at the end of the year.

Miscellaneous

  • Bitcoin Cash Increased 457% Over Q4 and reached All-Time High of $65.9bn in Market Cap
  • Litecoin Increased 304% Over Q4 and reached All-Time High of $8.9bn in Market Cap
  • XRP Increased 971% Over Q4 and reached All-Time High of $85.2bn in Market Cap
  • ZCash Increased 123% Over Q4 and reached All-Time High of $1.9bn in Market Cap
  • Monero Increased 253% Over Q4 and reached All-Time High of $7.3bn in Market Cap

Q4 2017 Enterprise Blockchain

  • Annual revenue for the enterprise blockchain will increase from approximately $2.5bn worldwide in 2016 to $19.9bn by 2025, with a CAGR of 26.2%.
  • Enterprise Ethereum Alliance adds members and 3 new organizational structures.
  • 9 banks set up joint venture aiming to ease European domestic and cross-border trade with DLT built by IBM.
  • Microsoft launches of blockchain for Azure
  • R3 adds members, launches Corda version 2.0. Corda becomes the first DLT to be accessible on Amazon Web Services (AWS).
  • Hyperledger members CME Group, Deutsche Borse Group, R3, downgrade their membership to general. 15 other organizations cancel their membership.

Q4 2017 Trading & Investment Summary

  • Total raised by ICOs hits $3.23bn in Q4, with VC amounting to $200mn.
  • Sirin Labs raised its way into 3rd all-time highest ICO ($158mn).
  • Less spectacular when denominating in ETH with +56% vs. +146% for USD (Q3 to Q4).
  • CME & Cboe futures launched with regulatory approval and market interest.
  • BitGo raised $43mn and Bitpay raised $30mn.
  • Token generating events (TGE) are split between $44bn in forks vs. $5bn in ICOs cumulatively.

Q4 2017 Government & Regulation Summary

  • The US Commodities & Futures Trade Commission gave approval for CME & Cboe to launch bitcoin futures contracts.
  • US regulators subpoena crypto exchange Bitfinex and Tether.
  • Q4 was filled with consternation that eventually ended in an increase in regulatory measures on trading.
  • Russian bill submitted which will determine the procedure for issuing, taxing, buying and circulation of cryptocurrency.

Q4 2017 Blockchain Sentiment Survey

 

 

  • 69% feel positive about the current state of bitcoin, down 18% from last quarter.
  • 82% didn’t go into debt to purchase cryptocurrency, and of those that did 52% have already paid it back.
  • 94% checked prices everyday (56%) or compulsively, every hour (37%).
  • 75% agreed with the postponement of SegWit2x, with 33% citing BCH as an existing market alternative.
  • 70% believe cryptocurrencies have moved away from cypherpunk roots. About 40% accept that something digitally native can be private property.
  • 60% just started following cryptocurrencies in 2017, with less than 2% getting involved in 2010.

The study has proved that an overall climate towards blockchain application in different sectors of economy is quite positive, and many countries are eager to adopt cryptocurrency and introduce blockchain services.

You can find previous coindesk reports here and Innmind’s summaries here.


Read other reviews of the reports:

▶ The State of Blockchain Q3 2017 (report review)

▶ Review of ICO funding in 2017

▶ Global Cryptocurrency Benchmarking Study


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