Crypto Market Weekly Report

Market Overview

Main Trend Overview

Market Sentiment and Trends: The market sentiment index has risen to 91%, indicating an extreme greed phase. Although BTC briefly surpassed $100,000 on Thursday before pulling back, the overall market resilience remains strong. ETH's strong performance has driven the crypto market up, demonstrating sustained confidence in mainstream cryptocurrencies.

Capital Flow Analysis: The market capitalization of stablecoins continues to grow, with USDT increasing by 1.74% to $141 billion and USDC growing by 2.03% to $40.2 billion, indicating a continued influx of new funds. On-chain data shows that large transfers are active, with clear signs of institutional capital entering the market. The off-exchange premium remains within a reasonable range, indicating a healthy supply and demand for market funds.

DeFi Sector Performance: The total locked value in DeFi has increased from 46.8 billion USD to 53.2 billion USD, a growth of 13.67%. Liquidity staking projects performed the best, benefiting from the rise in underlying asset prices and increased yields. The activity level of lending protocols has significantly increased, indicating a rise in leverage demand. DEX trading volume continues to rise, reflecting an increase in market activity.

Meme Coin Market: This week showed a lackluster performance, with a weekly return rate of only 11.94%. The issuance of new projects has decreased, and investor interest has waned. Funds are shifting towards projects with real applications and fundamentals. The level of discussion on social media has declined, indicating a reduced risk appetite.

Hot Attention: Layer 1 projects have received the highest attention on social media, with the weekly return rate of the PayFi sector reaching 40.04%. The AI Agent project has gained a new round of attention, especially projects on the Solana, TON, and Base chains. High-yield staking products in DeFi continue to attract attention. The trading activity in the NFT market has rebounded, but the overall valuation is still searching for a bottom.

Market Sentiment Index Analysis

The market sentiment index has risen to 91%, a significant increase from last week's 83%, indicating an extreme greed phase. Altcoins have performed similarly to the overall market this week, showing a fluctuating upward trend. The strong performance of ETH has led to a broad rally in Altcoins. The market expects a rotation of funds to occur next, increasing confidence in the future trend of Altcoins.

The price of BTC briefly surpassed $100,000 on Thursday; although it later retraced, market sentiment remains extremely greedy. A pullback is still expected, and investors need to enhance their risk prevention.

Overview of the overall market trend

• The crypto market fluctuated and rose this week, with the sentiment index still in the greed phase.
• DeFi projects have shown outstanding performance, indicating the market's continued focus on enhancing basic yields.
• The AI Agent project is gradually gaining attention, and there may be investment opportunities in the next half month.
• The meme sector continues to perform poorly this week, garnering no additional market attention.
• All public chain projects have risen broadly under the lead of ETH.

Hot Track

Tron ecosystem

This week, the price of TRX has surged significantly, driving up the popularity of Tron. As the main trading chain for USDT, activities on the Tron chain have increased substantially.

On-chain data:

• TVL: Increased from 7.97B to 9.32B, up 16.93%, funds are actively entering
• Active accounts: Reached 3.6725 million, an increase of 18.06% compared to last week, very active on the chain.
• USDT weekly trading volume: reached $131.4 billion, an increase of 16.23% compared to last week, on-chain trading volume increased.
• DeFi projects TVL growth: Justlend increased by 55.34%, SUN increased by 39.49%, funds entering the DeFi track.

Based on the above data, the Tron chain maintains rapid development, the rise in TRX prices drives ecological development, and the main chain position of USDT attracts a large number of users to participate.

AI Agent

The AI Agent track has formed three sub-directions: AI Agent Meme coins, issuance platforms, and underlying infrastructure. It mainly develops on the Solana, TON, and Base chains.

Main platforms:

• Solana: vvaifu.fun
• Base: Virtuals Protocol, AI Agent Layer
• TON: Clanker

The prices of VVAIFU, VIRTUAL, and CLANKER have rapidly increased, forming a certain market capitalization scale. None of them have been listed on top-tier exchanges and are still in the early stages.

The OpenAI 12-day product launch event has sparked market speculation in the AI sector. In the next 10 days, the AI sector may see a good increase, and investors should pay attention to related projects.

DeFi track

Top 5 TVL Growth Rankings

1. BounceBit: 134.26%
2. Astherus: 102.65%
3. StakeDAO: 77.17%
4. Flexa: 74.51%
5. SaucerSwap: 68.16%

Overall Performance of the Track

• The market capitalization of stablecoins is steadily increasing: USDT up 1.74%, USDC up 2.03%
• Liquidity is gradually increasing: The arbitrage rates of on-chain DeFi projects are increasing due to the rise in asset value.

The TVL of DeFi projects increased from $46.8 billion to $53.2 billion, a rise of 13.67%. It has maintained a continuous increase for nearly two months, proving that funds are continuously flowing into DeFi projects.

In-depth Analysis

Driving Force of Increase: BTC and ETH maintain strong growth, and investors are more optimistic about future trends. DeFi projects have seen an increase in APY due to the rise in underlying assets, attracting investors to participate actively.

Growth Leader: The liquid staking track projects have performed outstandingly. The prices of the underlying assets of various public chains have risen, encouraging users to participate in investment activities to increase returns. It is expected that the prices of various public chains will rise along with ETH, driving the growth of corresponding liquid staking projects.

Investors are advised to pay attention to liquidity staking projects on various public chains in the near term.

Performance in Other Tracks

Top 5 public chain TVL growth

1. Hedera: 74.42%
2. Zircuit: 70.79%
3. Filecoin: 54.12%
4. EOS: 47.66%
5. Kaia: 41.28%

Top 5 Token Price Increases

1. HYPE (Hyperliquid): 324.49%
2. OL (Open loot): 304.84%
3. CVX (Convex Finance): 127.01%
4. IOTA: 125.08%
5. CRV (Curve): 124.95%

This week's gainers list shows a concentration of sectors, with most of the rising tokens belonging to the public chain track.

Social Media Hot Topics

The most frequently mentioned topics are L1s, with listed tokens including TRX, ALGO, BNB, CRO, SUI, etc. Layer 1 blockchain projects are generally on an upward trend, performing better than BTC and ETH. DeFi projects within various public chain ecosystems continue to thrive, with both TVL and trading volume on the rise.

Overall Overview of Market Themes

Weekly Return Rate Ranking:

1. PayFi: 40.04%
2. NFT: 35.62%
3. Depin: 27.38%
4. Gamefi: 26.72%
5. Defi: 26.09%

PayFi track performed the best, while SocialFi track performed the worst.

Outlook for Next Week

Key events next week:

• December 11: Microsoft shareholders meeting to review Bitcoin investment proposal, US CPI data released
• December 12: European Central Bank interest rate decision

The market is expected to be significantly influenced by macro data and Microsoft's vote next week, potentially showing a volatile trend. Investors should maintain a cautious attitude.

DeFi projects, especially liquid staking protocols, yield farms, and the DEX sector, may continue to perform well.

The AI Agent track is in the early stage, and it is recommended to pay attention to projects related to token launch platforms. Monitor the daily number of token launches and the growth of trading volume on the platform.