Market Overview

This week, the crypto market has shown a wide range of fluctuations, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still entering the market. The poor market sentiment is mainly influenced by Trump's failure to timely introduce cryptocurrency policies after taking office. Although Trump signed the cryptocurrency bill and repealed SAB-121 on Thursday, it failed to significantly boost market sentiment, leading to most tokens declining more than the overall market, with Altcoins overall underperforming the benchmark index.

DeFi Ecosystem Development

The DeFi sector performed outstandingly, with TVL increasing by 0.56% to $53.8 billion, marking two consecutive weeks of positive growth. This is mainly attributed to the rise in the prices of underlying assets and project incentive points, leading to a general increase in on-chain APY. Projects like Sumer.money and Meteora have shown impressive TVL performance, indicating that investors are refocusing on the foundational returns of DeFi.

Development of the AI Track

Influenced by Trump's announcement of a $500 billion AI infrastructure plan, the total market value of the AI sector reached $41.9 billion, but subsequently adjusted due to weak market sentiment. Virtuals Protocol, Swarms, and others continue to push for technological innovation, focusing on autonomous trading agents, multi-agent collaboration frameworks, and infrastructure development, with attention on emerging narratives such as TEE technology applications and agent economic systems.

Meme Coin Trends

This week, the focus of Meme coins is on the TRUMP and MELANIA tokens issued on Solana by Trump and Melania, leading to a concentration of market funds and attention on these two tokens, while other Meme coins have significantly declined, showing the highly speculative and trend-following characteristics of the Meme coin market.

Public Chain Performance Analysis

Solana and Tron performed outstandingly, with Solana benefiting from the issuance of TRUMP tokens, and the on-chain stablecoin supply reaching a new high of $10.138 billion. Emerging public chains such as Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields, demonstrating strong potential for ecological development.

Future Market Outlook

Next week, the market will focus on the Federal Reserve FOMC meeting, the PCE price index, and tech stock earnings reports. The market is expected to maintain a volatile trend, but investors are optimistic about the opportunities arising from clearer cryptocurrency policies after February. The DeFi and AI sectors are likely to benefit from improved fundamentals and policy support, while competition within the public chain ecosystem will intensify.