As of the second quarter of 2021, the additional net appreciation of the crypto asset market is US$10 billion. This increase is consistent with the previous quarter’s value, but it is twice the value in the fourth quarter of 2020 and more than 5 times the value in the third quarter of 2020. The most important reasons for this substantial increase are the past 12 months:
- The value of most crypto assets has risen. For example, the price of Bitcoin has risen almost 2.5 times since the same period last year. Similarly, other assets have also experienced significant price increases last year, such as Ethereum, which has risen by more than 600%.
- Some foundations, teams and long-term holders hope to obtain liquidity at attractive prices, leading to an increase in asset circulation.
Two reasons for price increases and new free float in the market led to the growth of free float market value in the second quarter of 2021. The largest contributors were Ethereum (US$4.3 billion), XRP (US$2.3 billion), Dogecoin (US$1.3 billion) and Stellar Lumens ($640 million).
Last year, the crypto assets with the highest annual inflation rate in free circulation (denominated by currency standards) were Compound (625%), FTX Coin (36%), MakerDAO (27%), Zcash (26%) and XRP (24%). During the same period, Crypto.com Coin (-21%), Huobi Token (-18%) and Bitcoin (1.8%) had the lowest annual inflation rates.
Note: In February and April 2021, Crypto.com destroyed the 59.6 billion and 59 billion CROs in the addresses controlled by the foundation twice; the initial circulation of Compound was less when it was launched in March 2020 , Liquidity mining led to its early high inflation.
Foundation control address
During the second quarter of 2021, the net value of encrypted assets transferred to addresses outside the control of established foundations and companies was US$3.5 billion, down from US$17.1 billion in the previous quarter.
However, if the $13.3 billion burned by Crypto.com in the first quarter is excluded, the supply inflation caused by the addresses controlled by the Foundation remains relatively stable this quarter (a decrease of 5% this quarter). The two main reasons for the change in the number of tokens held by the foundation this quarter are as follows:
- The Crypto.com Coin foundation was destroyed for the second time, destroying 1.2 billion U.S. dollars worth of tokens from addresses controlled by the foundation.
- The Ripple Foundation transferred $850 million from an address controlled by the foundation.
Note: The company/foundation’s asset sales may be due to many reasons, including but not limited to operating expenses, team member/consultant ownership, strategic long-term cooperation or BD, planned and unplanned token destruction, strategic investment and financial management. Companies or foundations may also behave differently, or choose to release a large number of products infrequently, or release as needed. In addition, the transfer of assets from addresses controlled by the foundation/company does not necessarily mean that the assets have been sold (such as distribution to team members, destruction, strategic placement, community incentive plans, etc.).
Note: In February 2021, the Crypto.com Foundation destroyed $13.3 billion worth of CRO
Note: In April 2021, the Crypto.com Foundation destroyed USD 1.2 billion worth of CRO
Team control address
In the second quarter of 2021, the net value of encrypted assets transferred to addresses outside the control of the company team increased significantly, reaching a maximum of 3 billion U.S. dollars. During the second quarter of 2021, the assets of the team’s control address increased the most freely circulating supply as follows:
- XRP: Newly added 1.2 billion XRP into the more liquid market, valued at 1.4 billion US dollars.
- Chainlink: The newly added 19.5 million LINK enters the more liquid market, valued at US$624 million.
- Crypto.com: Among them, 2.3 billion CRO ($480 million) left the team’s control address, and most of them ended up in destructible wallets, so it did not affect the free circulation of Crypto.com.
Note: Moving out of the team’s control address does not necessarily mean that the asset has been sold, but may be a sign of activity (such as moving to a passive income tool such as Compound).
Details of free float changes
In the second quarter of 2021, the total number of ZRX removed from foundation-controlled addresses was 34 million, an increase of 24 million from the previous quarter.
However, 21 million ZRX of these were deposited into the ZRX vault. Since the tokens in ZRX vault can earn interest, perform governance functions, and are indistinguishable from other tokens, they are considered to be active and more liquid than passively held assets.
The team’s control address transferred out 16.8 million ZRX in the second quarter, a significant increase compared to the 4.5 million ZRX transferred out in the previous three quarters. However, most of these transferred tokens are deposited in Compound and Makerto, which may be used as collateral for loans or to earn income (perhaps both).
The net impact of the trading activities between the Foundation and Team ZRX is to increase the free float supply of 41.5 million ZRX.
Since Aave was only launched in the fourth quarter of last year, its history of free circulation is limited. By the end of the fourth quarter, Aave-controlled addresses still managed more than 3 million AAVEs, of which more than 500,000 were still in the Migration contract and were not claimed by LEND holders. AAVE also launched their liquidity mining in the second quarter, which led to an increase in the inflation rate of AAVE DAO. AAVE DAO now holds 2.6 million AAVE.
In the second quarter, AAVE increased its free float by a total of 365,000.
Balancer released 1.885 million BAL to the circulation field through their liquidity mining plan, which is the same value as the fourth quarter of 2020.
In the second quarter, the number of BALs released by the Balancer Foundation to enter more liquid markets decreased, and only 725,000 BALs were transferred from the addresses controlled by the foundation, which was lower than the 1.7 million BALs in the first quarter. Coupled with the small-scale net accumulation of 117,000 BALs in the team’s control address, the net change in the free float of Balancer this quarter was 2.5 million.
BASIC ATTENTION TOKEN (BAT)
During the second quarter of 2021, Basic Attention Token had the lowest quarterly growth in the past year. Only 11.2 million new BATs entered circulation in the second quarter, a decrease from 47.1 million in the previous quarter. Most of these impairments are due to reduced activity in wallets controlled by the Foundation. The most active’BAT: UPG Reserve’ among the wallets controlled by the foundation has only a net outflow of 6 million BAT, which is much lower than the amount in the previous three quarters-26.5 million (first quarter of 2021) and 28.8 million respectively. (The fourth quarter of 2020) and 24.7 million (the third quarter of 2020).
At the same time, the determined team control address made up for the increase in the remaining free circulation. This quarter, 4.4 million BAT entered the more liquid market, which was lower than the 20 million BAT outflow in the first quarter of 2021.
The number of new bitcoins issued by mining activities in the second quarter of 2021 was 75,200, which was slightly lower than the expectations of the previous quarters and issuance targets. The main reason for the decline was that Chinese miners took down mining machines to comply with new local regulations and law enforcement. , The hash rate has dropped significantly, resulting in fewer blocks being produced and a lower inflation rate this quarter.
However, there were 73,000 bitcoins in the quarter that have been inactive for more than 5 years. According to the free circulation calculation method, these tokens are classified as likely to be strategic long-term holders or have been lost, and therefore have no impact on the liquid market (and free circulation).
The above situation resulted in a net increase of Bitcoin’s free circulation of only 2000 BTC this quarter.
BITCOIN CASH (BCH)
The free circulation of Bitcoin Cash has decreased by approximately 100,000 compared to the previous two quarters. Although the mining emissions in the second quarter are consistent with the previous two quarters, only 50,000 BCH has entered the free circulation supply from the activated coins for the first time since Bitcoin Cash and Bitcoin separated, which is lower than the 160,000 BCH in previous quarters.
The above situation resulted in a net increase of 132,000 BCH in Bitcoin Cash’s free float during the quarter.
BITCOIN GOLD (BTG)
The free float of Bitcoin Gold increased by 157,000 BTG in the second quarter of 2021, which was in line with the level of the first quarter, but was more than 100,000 lower than the increase in the third and fourth quarters of 2020. Among them, 81,000 BTG came from mining activities, and the other 76,000 BTG came from the free float of Bitcoin Gold that was activated for the first time after the BTG fork.
The above situation led to a net increase of 157,000 BTG in Bitcoin Gold’s free float during the quarter.
BITCOIN SV (BSV)
In the second quarter of 2021, the free float supply of Bitcoin SV increased by 181,000 BSV, which is a significant drop from the 498,000 newly added free float in the first quarter of 2021.
Although the new issuance of Bitcoin SV related to mining is consistent with previous quarters, only 100,000 BSV has been activated since the BSV fork, which is the lowest quarterly increase in activation supply since the third quarter of 2020.
The above situation resulted in a net increase of 182,000 BSV in free float during the quarter.
In the second quarter of 2021, Cardano’s free float increased by 247 million ADA, compared with a single quarter’s free float supply increased by 1.5 billion ADA, a record decline in the first quarter.
Most of the increase in the quarter was the result of PO, which added 178 million ADA to Cardano’s supply chain.
Chainlink’s free float supply has increased for the third consecutive quarter, experiencing the highest quarterly growth since the third quarter of 2019. In the second quarter of 2021, 19.5 million LINKs were added, which was higher than the 17.5 million LINKs in the first quarter.
The increase in its free float supply is due to transfer-out transactions from the team’s confirmed address.
In the second quarter, a total of 665,000 COMP entered the free float supply, a decrease of 26% compared to the first quarter (898,000 COMP).
This quarter, the amount of COMP tokens released by foundation-controlled addresses decreased by 56%, and only 244,000 COMP tokens were released to the more liquid market, mainly through liquidity mining.
However, the distribution of team-controlled addresses has increased. 420,000 COMP has left the closely-held team-controlled addresses, which is an increase from 388,000 in the first quarter and 87,000 in the fourth quarter of 2020. This may be the result of the distribution of tokens attributable to the team, as the agreement has been launched for more than a year.
CRYPTO.COM COIN (CRO)
In the second quarter of 2021, the Crypto.com Foundation once again destroyed the units held by the CRO Foundation, and sent 5 billion CRO to the destruction address on April 1.
Since the destroyed unit comes from an address controlled by the Foundation, this destruction does not affect the free circulation of CRO, but reflects the change in the maximum total supply of CRO in the future. During the quarter, 2.3 billion CROs from addresses controlled by the team were sent to the destruction address for destruction. In addition, 2.1 billion CROs were burned during the quarter, some of which came directly from the free float of the Bittrex exchange.
The net effect of the above changes is that the free float supply of CRO has been reduced by 2.2 billion, and its free float has been reduced for two consecutive quarters.
In the second quarter of 2021, Curve’s free circulation supply increased by 173 million CRV, slightly higher than the 130 million CRV (first quarter of 2021) and 137 million CRV (the fourth quarter of 2020) in the previous two quarters.
Curve is a relatively new protocol launched in August 2020. It has a scheduled token issuance speed and will continue to be issued at an approximate speed in the next few quarters. Most of the increase in free circulation supply comes from the transfer from the foundation-controlled address to the liquidity mining, which leads to an increase in issuance, and the CRV released by the team-controlled address.
The issuance of DASH for mining-related activities in the second quarter was 154,000, which was similar to the previous quarters (that is, after experiencing the 6.0% inflation rate adjusted quarters that occurred in the second quarter of 2020). During the quarter, 23,000 DASH tokens were considered inactive for more than 5 years and belonged to long-term strategic investors or lost supplies.
The net result of the above two factors is that the free float of DASH increased by 131,000 during the quarter.
The free float supply in the second quarter of 2021 increased by 289,000 DCR tokens, an increase from the lowest record of free float increase in the first quarter (40,000). Most of the increased free float supply comes from the increase of 323,000 DCR in mining activities this quarter, another 28,000 DCR was removed from the supply due to aging (inactive for more than 5 years), and 11,000 DCR tokens were accumulated due to the foundation. Was removed from supply.
Digibyte’s free circulation supply increased by 252 million DGB in the second quarter, a 14% decrease from the first quarter. Inflation related to Digibyte mining continues to decrease every quarter. The increase this quarter is 27 million, which is down again from the 279 million in the first quarter.
Another 21 million DGB were removed from free float during the quarter due to inactivity for more than 5 years. According to the free circulation method, these tokens will be classified as potentially strategic long-term holders or have been lost, and therefore have no impact on the liquid market (and free circulation).
In the second quarter of 2021, Dogecoin’s free float has again seen a relatively large increase. The reason for the increase is that a certain holding of 2.6 billion DOGE tokens suddenly made a transaction (previously there was no activity for more than 5 years), and the new on-chain supply of 1.2 billion DOGE tokens brought about by mining activities.
The free float of Dogecoin in the quarter increased by 3.8 billion.
The free circulation of Ethereum increased by 1.2 million ETH in the second quarter of 2021. Most of the new supply came from block subsidies from miners (1.2 million), and another 31,000 ETH was transferred from the foundation-controlled address to liquidity. A stronger market (in-depth note: The Ethereum Foundation once realized more than 30,000 Ethereum in May), it has been Lost assets) and the 38,000 ETH removed from the free float supply offset each other.
FTX TOKEN (FTT)
In the fourth quarter, the free circulation supply of FTX tokens declined for the second consecutive quarter. This is the result of 1.6 million FTT tokens being sent to the destruction address and destroyed.
The amount burned in the second quarter was 24% lower than the 2.1 million FTT in the first quarter. In the second quarter of 2021, there were no transactions that sent teams or foundation-controlled addresses to more liquid addresses, resulting in a decrease of 1.6 million in the free circulation supply of FTT in this quarter.
HUOBI TOKEN (HT)
The Huobi token is still one of the most stable deflationary assets in the cryptocurrency market, and it has experienced a decrease in free circulation supply in each quarter of 2020. This situation did not change in the second quarter, and the free circulation supply of HT decreased by 1.21 million. This includes:
- Huobi continued to burn HT on the chain, sending HT to the destruction address (this address received 16.2 million HT in this quarter).
- The Huobi Foundation transferred 4 million HT from an address controlled by the foundation to a more liquid market.
In the second quarter, the free circulation supply of Litecoin increased by 587,000 LTC, which is basically the same as the previous quarter’s growth. Although the new supply from mining-related activities remained relatively stable, with an increase of 644,000 LTC in the second quarter, the net increase of 57,000 LTC from dormant addresses over 5 years removed some liquidity from the market.
The net result of this quarter is that the free float supply of Litecoin has increased by 587,000 LTC.
MakerDAO’s free circulation supply resumed its net growth in the second quarter of 2021, with 75,000 MKR added to free circulation.
The main reason for this increase was that 55,000 MKR was removed from the MakerDAO governance contract. In addition, MakerDAO has also experienced a reduction in supply on the chain. This quarter, 3900MKR was repurchased from the expenses incurred by DAI and destroyed.
In the second quarter of 2021, NEO’s free float increased by 21,800. This increase comes from the transfer from foundation-controlled addresses to more liquid addresses during the quarter.
STELLAR LUMENS (XLM)
In the second quarter of 2021, the free circulation supply of Stellar Lumen increased by 532 million XLM, a decrease of 29% compared to the previous quarter. The increase in free float came from XLM that was transferred from foundation-controlled addresses to more liquid addresses during the quarter.
In the second quarter of 2021, Uniswap’s free-circulation supply increased by 1 million UNIs. The increase in free-circulation supply was due to first-time users still requesting their airdrops from addresses allocated by UNI.
In the second quarter of 2021, the free circulating supply of XRP increased by 2 billion, which is basically the same as their performance in the first two quarters. The largest contributor to the additional liquidity in the market this quarter was the address controlled by Ripple Team, which provided a net outflow of 1.2 billion XRP, which has increased four times since the second quarter of 2020. At the same time, the addresses controlled by Ripple Team also provide a net outflow of 800 million XRP.
In the second quarter of 2021, Year’s free circulating supply decreased by 770YFI. Most of these are derived from the YFI added to the determined team control address, and most of these increments are derived from the deployed treasury assets in Yearn Vaults.
In the second quarter of 2021, the free float supply of Zcash increased by 326,000 ZEC, which is very similar to the growth of the previous quarter (the smallest quarterly free float increase in history occurred in the previous quarter). The low level of growth this quarter is the result of the recent ZCash block halving event that occurred in November 2020.
There are no other known changes to Zcash’s free circulation supply. Please note that if the foundation and the team adopt private transactions, it is unknowable whether they control assets (privacy is still very useful!).
Detailed free circulation classification table
*Shenchao CryptoFLow reminds investors to guard against risks. The views in this article do not constitute any investment advice.
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Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/2021q2-token-transparency-report-which-project-teams-are-transferring-tokens/
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