CIRCLE-2019年第二季度加密货币报告（英文）-2019.7-81页_25mb

2Q19 Crypto Retrospective Summary

Core Content Overview

This summary provides an analysis of key developments and trends in the cryptocurrency space during the second quarter of 2019, focusing on Bitcoin, Ethereum, DeFi/Open Finance, institutionalization, stablecoins, and token offerings.

Main Trends and Developments

Bitcoin

• Performance: Bitcoin outperformed in price, daily transaction count, value, active addresses, and hashrate compared to Q1 2019.
• Upgrades: The community introduced privacy-enhancing upgrades like Taproot and Schnorr, which aim to improve scalability and privacy.
• Halving: The next Bitcoin halving is expected in May 2020, following a pattern where the price has historically risen after each halving event. The first two halvings saw price increases of 5.5x and 3.8x, respectively.
• Security: As block rewards decline, the reliance on transaction fees for miner incentives is a growing concern. The Fee Ratio Multiple (FRM) has decreased significantly, indicating a potential shift in security dynamics.
• Network Activity: Hashrate reached a new all-time high, with daily active addresses and transaction volume showing strong growth. However, Lightning Network (LN) metrics declined slightly compared to Q1.

Ethereum

• Performance: Ethereum also showed strong growth in daily active addresses and transaction volume, though the performance was more mixed than Bitcoin's.
• Ethereum 2.0 Phase 0: Prymatic Labs launched the Ethereum 2.0 beacon chain testnet, marking a major step in the transition to proof-of-stake. The Phase 0 launch is expected in October 2019, with a genesis event target for January 3, 2020.
• Istanbul Upgrade: The first set of Ethereum 1.x upgrades, dubbed "Istanbul," was set for October 2019. It included EIPs like EIP-2028 to reduce transaction data gas costs and improve scalability.
• DAOs: Decentralized Autonomous Organizations (DAOs) saw a resurgence, with notable examples including MolochDAO and Aragon. DAOs are being used to govern projects and manage community funds.

DeFi/Open Finance

• Growth: The DeFi ecosystem continued to expand rapidly, with increased interest in decentralized lending, DEX volumes, and composable protocols like Maker's DAI, 0x, and Compound Finance.
• Activity: While the number of dApps increased, the rate of deployment on major platforms like Ethereum and EOS declined significantly.

Institutionalization

• Institutional Involvement: There was a notable increase in institutional participation, including inflows into Grayscale products, CME futures volume, and regulatory approvals.
• Infrastructure: Regulated exchanges, custody providers, and investment vehicles are becoming more established, signaling the maturation of the crypto market.

Stablecoins

• Libra: Facebook's Libra project was a major topic, with mixed reactions. Some viewed it as a potential gateway to crypto, while others raised privacy and regulatory concerns.
• USDC and USDT: These stablecoins saw significant market cap growth, with USDC leading the rise in Q2 2019.

Token Offerings

• IEOs: Initial Exchange Offerings (IEOs) dominated the conversation, with Bitfinex's $1 billion LEO token sale being a notable example.
• Security Tokens: The security token industry remained in an embryonic phase, with limited offerings in Q2 2019.

Key Metrics and Data

Bitcoin Network Activity

• Daily Active Addresses: Up 26% q/q, reaching a 5-month consecutive increase.
• Daily Transaction Count: Up 17% q/q, with a significant rise in Q2.
• Daily Transaction Value: Up 106% q/q, though growth slowed in June.
• Lightning Network: Capacity increased 135% in USD terms but declined 11% in BTC terms.

Ethereum Network Activity

• Daily Active Addresses: Up 32.7% q/q, but down 12.6% y/y.
• Daily Transaction Count: Up 43.9% q/q, with a slight decline in June.
• Daily Transaction Value: Up 113.9% q/q, but down 47.1% y/y.
• Gas Usage: Total gas usage peaked in May, with an increase of 27.3% q/q and 9.3% y/y.

Innovative Proposals and Technologies

• Schnorr and Taproot: These upgrades aim to enhance privacy and scalability.
• Erlay: A protocol to reduce bandwidth consumption by 40%.
• Layer 2 Solutions: Lightning Network and Liquid Sidechain Network are being developed to improve transaction speed and privacy.
• Zero-Knowledge Proofs (ZKPs): Used in projects like Zether, AZTEC Protocol, and Kyber Network to enable private transactions and asset transfers.

Risks and Challenges

• Reorganizations: While reorgs can be used to reverse hacks, they carry significant risks to network credibility and may not be successful.
• DAOs: Vulnerable to manipulation by large token holders, with risks of plutocracy and lack of technical expertise.
• Security Model: As block rewards decrease, the sustainability of transaction fees as a security model is under scrutiny.

Conclusion

The second quarter of 2019 was marked by significant growth in the crypto space, particularly in Bitcoin and Ethereum networks. Institutional involvement increased, DeFi continued to expand, and new technologies like ZKPs and Layer 2 solutions were introduced. However, challenges remain, including the sustainability of security models and the risks associated with DAOs and reorganizations. The upcoming Bitcoin halving and Ethereum 2.0 upgrades are expected to have a major impact on the future of the space.