Crypto Market Weekly Report

This week, the crypto market has shown wide fluctuations, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market cap of stablecoins continues to grow, indicating that institutional funds are still entering. The low market sentiment is mainly influenced by policies related to Trump, and although a cryptocurrency bill was issued on Thursday, it failed to significantly boost the market. Most tokens have fallen more than the overall market, with Altcoins generally weaker than the benchmark index.

The DeFi sector performed outstandingly, with TVL increasing by 0.56% to $53.8 billion. The rise in the price of underlying assets and project incentives have boosted on-chain APY, with notable TVL growth in projects like Sumer.money and Meteora.

The total market value of the AI sector reached 41.9 billion USD, but then it pulled back. Projects like Virtuals Protocol and Swarms continue to advance technological innovation, focusing on autonomous trading agents and multi-agent collaborative frameworks. Emerging narratives such as TEE technology applications and agent economic systems are gaining attention.

The focus of the meme coin market is concentrated on the TRUMP and MELANIA tokens issued by the Trump couple on Solana, leading to a significant decline in other meme coins.

In the public chain ecosystem, Solana and Tron stand out. The supply of stablecoins on the Solana chain has reached a historic high of 10.138 billion USD. Emerging public chains like Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields.

Looking ahead to next week, the market will focus on important events such as the Federal Reserve FOMC meeting, the PCE price index, and earnings reports for tech stocks. The market is expected to remain volatile, but investors are optimistic about opportunities arising from clearer policies after February. The DeFi and AI sectors are likely to continue benefiting, and competition in the public chain ecosystem will intensify.

Market Overview

Overall Market Overview

This week, the crypto market experienced wide fluctuations, with the sentiment index dropping to 10%, entering the extreme fear zone. The market capitalization of stablecoins continues to grow, with USDT reaching 138.9 billion and USDC reaching 51.9 billion, indicating that institutional funds are still entering the market. The market sentiment is sluggish, mainly influenced by Trump-related policies. Although a cryptocurrency bill was issued on Thursday and SAB-121 was repealed, it failed to significantly boost the market. Most tokens fell more than the overall market, and Altcoins were generally weaker than the benchmark index.

DeFi Ecosystem Development

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

Development of the AI Track

The total market capitalization of the AI sector reached $41.9 billion, but then experienced a pullback. Projects like Virtuals Protocol and Swarms continue to promote technological innovation, focusing on the layout of autonomous trading Agents, multi-Agent collaboration frameworks, and infrastructure. The application of TEE technology and emerging narratives such as the Agent economic system are gaining attention.

Meme Coin Trends

This week, the focus of Meme coins is on the TRUMP and MELANIA tokens issued by Trump and Melania on Solana, resulting in a large influx of funds and attention, while other Meme coins have seen significant declines, demonstrating the market's highly speculative and trend-following characteristics.

Analysis of Public Chain Performance

Solana and Tron have performed outstandingly, especially Solana benefiting from the TRUMP token issuance, with 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 sectors, demonstrating strong potential for ecological development.

Future Market Outlook

Looking ahead to next week, the market will focus on important events such as the Federal Reserve FOMC meeting, PCE price index, and earnings reports from tech stocks. The market is expected to remain volatile, but investors are optimistic about opportunities arising after February as policies become clearer. The DeFi and AI sectors are expected to continue benefiting, and competition in the public blockchain ecosystem will further intensify.

Market Sentiment Index Analysis

The market sentiment index has dropped from 35% last week to 10%, entering the extreme fear zone.

Altcoins underperformed the benchmark index overall this week, with most tokens declining more than the broader market. This is mainly due to investors waiting for the introduction of the Crypto bill and policies in Trump's new administration. Although the cryptocurrency bill was issued on Thursday and SAB-121 was repealed, it failed to significantly boost market sentiment, leading to cautious investment and overall poor market sentiment. It is expected that in the short term, Altcoins will remain in sync with the benchmark index.

Overview of Overall Market Trends

• The crypto market has been volatile this week, with the sentiment index entering the extreme fear zone.

• DeFi projects perform better than other sectors, showing that the market continues to focus on increasing basic yields.

• AI-related projects are receiving a lot of attention, indicating that investors are actively looking for the next market breakout.

Hot Tracks

The Rise of AI: From Trump's $500 Billion Infrastructure to 90% On-Chain Transaction Intelligence, Web3 is Welcoming the Year of the AI Revolution

This week, following Trump's announcement of a $500 billion AI infrastructure plan for the next four years, the AI sector rebounded overall, but then fell back due to low market sentiment.

Projects are steadily advancing: Virtuals Protocol updates the value accumulation mechanism, Swarms establishes a 10 million token ecological fund and plans to launch new features, AI16Z expands the Near and Avalanche ecosystems, Holoworld launches Launchpool, and AIXBT continues to top Kaito's attention leaderboard. The market mainly focuses on autonomous trading agents, multi-agent collaboration frameworks, and infrastructure construction, with emerging narratives such as TEE technology application verification, the formation of agent economic systems, and cross-chain agent ecosystem integration attracting attention.

According to Messari's prediction, by the end of 2025, it is expected that 90% of on-chain transactions will be completed by AI agents. These intelligent agents can make micropayments based on real-time data, continuously optimize liquidity pools, fairly allocate rewards, and achieve more efficient and intelligent operations. It is foreseeable that the crypto market is about to enter the AI era.

DeFi track

TVL Growth Ranking

In the past week, the top 5 projects with the largest TVL growth in the market, excluding public projects with a smaller TVL, are those with a standard of over 30 million USD, data source: Defilama.

Sumer.money( Unissued Token ): ( Recommended Index: ⭐️⭐️⭐️ )

( collaborated with many projects to launch an NFT minting event.

• Project Introduction: Sumer.money is a cross-chain synthetic asset protocol with a lending market, deployed on supported chain networks. It supports the creation of synthetic assets like SuToken)USD, ETH, and BTC, providing users with a credit card-like experience.

• Latest developments: This week, TVL has surpassed the 100M milestone, and we have launched an NFT minting event in collaboration with BeraSkool, Bera Horses, and Kingdomly, strategically joining the Core Ignition program of Core DAO. The team revealed the Sumer Money Multipliers ###suBTC( optimization strategy and is actively preparing new funding pool design plans. We are maintaining community engagement through Twitter interactive competitions.

Meteora) Unissued Token (: ) Recommendation Index: ⭐️⭐️⭐️(

) introduces the "Liquidity Ratio Slider" feature to enhance user experience.

• Project Introduction: Meteora is a DeFi project based on Solana, aiming to enhance capital efficiency and trading experience by optimizing liquidity. It provides decentralized liquidity management tools, including automated trading, fee analysis, and anti-sniping bot protection for token issuance.

• Latest Developments: This week, we launched the innovative "Liquidity Ratio Slider" feature, simplifying the process for users to adjust their asset liquidity allocation. The LP Army is showcasing diversified development, attracting users from different languages and regions to participate in liquidity provision, in collaboration with the Starseed team. We are strengthening user interaction through activities such as LP Army community conference calls and Office Hours.

Silo Finance(SILO):###Recommendation Index:⭐️⭐️(

) launched S-ETH and S-USDC to increase user returns.

• Project Introduction: Silo Finance is a decentralized, permissionless lending protocol that provides a secure and efficient monetary market by utilizing isolated elements. It is designed to address the main pain points of existing lending protocols, solving the security flaws of shared pools by isolating each lending pool.

• Latest developments: This week, two important markets, S-ETH and S-USDC, were launched. The S-USDC market offers an annual yield of up to 5,425%, while the stS/S silo provides a stable yield of 7.9%. A strategic partnership has been established with Solv Protocol, making it the second-largest protocol of Sonic Labs, controlling 20% of the Sonic USDC supply and 10% of the stS supply. The innovative Sonic point mechanism and diversified yield strategies are attracting user participation.

Aura(AURA):###Recommendation Index:⭐️⭐️(

) launched StableSurge, the innovative anti-peg mechanism is effective, and capital efficiency has soared to 1:1.58.

• Project Introduction: Aura Network is an NFT-centric public chain project aimed at accelerating the adoption of blockchain internet for global NFTs. It provides an open system to maximize interoperability and serves as the infrastructure layer for integrating NFTs into the metaverse.

• Latest Development: This week, partnered with Balancer to launch the StableSurge Hook technology, effectively preventing de-pegging risks through a price increase tax mechanism, enhancing the earnings of LP holders during market volatility. Balancer v3 Boosted Pools will be launched soon, providing diversified sources of income. Collaborated with GnosisChain to offer up to 5% GNO cashback incentives. In terms of governance, capital efficiency is significant, with every $1 incentive yielding $1.58 in output, and recently distributed over $300,000 in incentives to vlAURA voters.

Pell Network(PELL):###Recommendation Index:⭐️⭐️⭐️(

) Pell Network lays out full-chain BTC re-staking

• Project Introduction: Pell Network aims to create a decentralized token economic security leasing platform for the Bitcoin ecosystem. It builds an aggregated native BTC Stake and LSD re-staking service, allowing stake holders to choose validations based on new software modules built within the Pell Network ecosystem.

• Latest developments: This week, we are focusing on improving the functionality of the PELL token and integrating the EGLD re-staking protocol, in collaboration with SovereignChains to launch an innovative Omnichain Bitcoin re-staking network. We have reached an exclusive partnership with Hatom Protocol to provide algorithmic lending solutions for the MultiversX ecosystem. We have established strategic collaborations with Atlas_Nodes and P2Pvalidator to promote the development of Bitcoin re-staking. We are actively preparing for the IDO issuance on xLaunchpad.

In summary, the projects with significant TVL growth this week are mainly focused on the gun pool projects.

Overall Performance of the Track

• Liquidity is gradually increasing: The APY of on-chain DeFi projects has seen a significant increase due to rising prices of underlying assets and the distribution of points. For investors who are optimistic about the long-term prospects of the crypto market, returning to DeFi will be a great choice.

• Funding situation: The TVL of DeFi projects rose from $53.5 billion last week to $53.8 billion, an increase of 0.56%, marking two consecutive weeks of positive growth. This is mainly due to the market's general optimism regarding Trump's first quarter in office, leading to funds entering the DeFi sector, with various projects' APYs rising to attract on-chain capital participation, driving the increase in the DeFi market's TVL.

Performance in Other Tracks

Public Chain

The top 5 public chains by TVL increase in the past week ### do not include public chains with smaller TVL (, data source: Defilama

![From Trump's 500 billion infrastructure to 90% on-chain transaction intelligence, Web3 is迎来 the AI revolution year｜Frontier Lab crypto market weekly report])https://img-cdn.gateio.im/webp-social/moments-89e970f34bfc412c5ed52ad5d2ebc6d5.webp(

) Sonic: The dual exchange launch ignites ecosystem enthusiasm, integrating Chainlink