Market Overview

In the past week, the cryptocurrency 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, with USDT reaching 138.9 billion and USDC reaching 51.9 billion, indicating that institutional funds are still entering the market. The low market sentiment is mainly influenced by policy uncertainty. Although Trump has issued legislation related to cryptocurrencies, it has not significantly boosted market sentiment, leading to most tokens declining more than the overall market, and Altcoins overall performing weaker than the benchmark index.

Development of DeFi Ecosystem

The DeFi sector performed outstandingly, with TVL increasing from $53.5 billion to $53.8 billion, a growth rate of 0.56%, showing positive growth for two consecutive weeks. This is mainly attributed to the rise in the prices of underlying assets and project incentive measures, with on-chain APY generally improving. Projects like Sumer.money and Meteora have shown remarkable performance in terms of TVL, indicating that investors are beginning to pay renewed attention to the foundational returns in the DeFi space.

Development of the AI Track

Affected 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 experienced a correction due to low market sentiment. In terms of projects, Virtuals Protocol, Swarms, and others continue to promote technological innovation, focusing on the layout of autonomous trading agents, multi-agent collaboration frameworks, and infrastructure construction. At the same time, the application of TEE technology and emerging narratives such as the agent economic system are gradually gaining attention.

Meme Coin Trends

This week, the focus of the Meme coin market is on the official tokens TRUMP and MELANIA issued by Trump and Melania on Solana, which has led to a significant amount of funds and attention being concentrated on these two tokens, causing other Meme coins to experience a sharp decline, demonstrating the high speculative nature and trend-following characteristics of the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out the most, especially Solana benefiting from the issuance of the TRUMP token, with the on-chain stablecoin supply reaching a historic high of 10.138 billion USD. At the same time, emerging public chains such as Sonic, Core, and BSquared are continuously innovating in the DeFi and AI fields, demonstrating good 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, the PCE price index, and the earnings reports of tech stocks. The market is expected to maintain a volatile trend, but investors are generally optimistic about the opportunities that will arise after February as cryptocurrency policies become clearer. The DeFi and AI sectors are expected to continue benefiting from improving fundamentals and policy support, while competition in the public chain ecosystem will intensify.

Market Sentiment Index Analysis

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

Altcoins performed overall weaker than the benchmark index this week, with most tokens declining more than the market. This is mainly because market investors are generally waiting for the introduction of crypto-related legislation and policies in the new regulations. Although Trump issued cryptocurrency-related legislation, it failed to significantly boost market sentiment, resulting in investors currently being cautious about market investments, which has led to poor overall market sentiment. Given the current market structure, Altcoins are expected to remain in sync with the benchmark index in the short term.

Overview of Overall Market Trends

• The cryptocurrency market is in a volatile trend this week, with the sentiment index entering the extreme fear range.

• DeFi-related crypto projects have performed better than those in other sectors, demonstrating the market's ongoing interest in improving fundamental returns.

• The sentiment regarding AI projects is quite high this week, indicating that investors are beginning to actively look for the next market breakout point.

Hot Track

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, as Trump announced a $500 billion AI infrastructure plan for the next four years, the overall AI sector experienced a rebound. However, due to the overall market sentiment not being very optimistic afterward, there was a subsequent decline.

In the past week, various projects have not halted their innovative efforts due to the significant market fluctuations. Among them, Virtuals Protocol updated its value accumulation mechanism, Swarms established a 10 million token ecological fund and plans to launch new features, AI16Z is expanding the Near and Avalanche ecosystems, and Holoworld launched its Launchpool. Meanwhile, AIXBT continues to dominate the Kaito attention leaderboard, indicating that various project teams are still making steady progress in their development. Currently, the market mainly revolves around autonomous trading Agent( such as Cod3x, Almanak), multi-Agent collaboration framework(Spectral Lux), and infrastructure construction(Virtuals SDK), while emerging narratives such as TEE technology application verification, the formation of Agent economic systems, and cross-chain Agent ecosystem integration are gradually gaining market attention.

According to predictions from Messari, by the end of 2025, it is expected that 90% of on-chain transactions will no longer be manually operated by real people, but will be completed by a group of AI agents. These intelligent agents can not only make micropayments based on real-time data but also continuously optimize liquidity pools and allocate rewards reasonably, achieving more efficient and smarter operations. It is foreseeable that the Crypto market is about to enter the AI era.

DeFi Track

TVL Growth Ranking

The top 5 projects by TVL growth in the past week, excluding projects with lower TVL, with a standard of over 30 million USD, data source: Defilama.

( Sumer.money) Not Issued###:( Recommendation Index:⭐️⭐️⭐️)

Launch NFT minting activities in collaboration with numerous projects.

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

• Latest Developments: Sumer Money successfully surpassed the milestone of 100M in TVL this week. At the same time, Sumer Money has partnered with BeraSkool, Bera Horses, and Kingdomly to launch an NFT minting event as part of its ecological expansion, and strategically joined the Core DAO's Core Ignition program. The team revealed the optimization strategy for Sumer Money Multipliers (suBTC) through an AMA and is actively preparing new liquidity pool design plans; Sumer.money maintains community engagement through Twitter interactive competitions.

( Meteora) Unissued Token###:( Recommended Score:⭐️⭐️⭐️)

To enhance user experience, the "Liquidity Ratio Slider" feature has been launched.

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

• Latest Development: Meteora has launched an innovative "Liquidity Ratio Slider" feature this week on the technical front, simplifying the process for users to adjust asset liquidity allocation; in terms of ecosystem development, LP Army has shown a diversified development trend, attracting users from different languages and regions to participate in liquidity provision and collaborating with the Starseed team; in terms of community operations, through activities such as LP Army community conference calls and Office Hours, continuous efforts have been made to strengthen interaction and communication with users, demonstrating the project's ongoing innovation capabilities in the DeFi field and its global development strategy.

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

Launch S-ETH and S-USDC to increase user earnings

• Project Overview: Silo Finance is a decentralized, permissionless lending protocol that provides secure and efficient money markets by utilizing isolated elements. The design of Silo addresses the main pain points of existing lending protocols, with the security flaws of shared pools being resolved by isolating each lending pool.

• Latest Developments: Silo Finance launched two important markets this week: S-ETH and S-USDC, providing users with a variety of trading options. The S-USDC market offers an annualized yield of up to 5,425%, while stS/S silo provides a stable yield of 7.9%. Additionally, Silo Finance has established a strategic partnership with Solv Protocol and has successfully become the second-largest protocol in Sonic Labs, controlling 20% of the Sonic USDC supply and 10% of the stS supply. This week, Silo Finance attracted users to participate through its innovative Sonic points mechanism and diversified yield strategies.

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

Launched StableSurge, innovative anti-peg mechanism shows results, capital efficiency skyrockets to 1:1.58

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

• Latest Developments: Aura launched the StableSurge Hook technology this week through a partnership with a certain platform. This innovative mechanism effectively prevents de-pegging risks through a price increase tax mechanism, while also enhancing the earnings of LP holders during market volatility. Furthermore, v3 Boosted Pools will soon be launched on the platform, providing users with diversified sources of income, including rewards from trading, lending, T-Bills, and other dimensions. Additionally, Aura has partnered with GnosisChain to offer up to 5% GNO cashback incentives. Aura has demonstrated significant capital efficiency in governance, stating that every dollar invested in incentives can yield $1.58 in output. Recently, over $300,000 in incentives were distributed to vlAURA voters during the dual cycle, showcasing the project's ongoing innovation capabilities and strong operational efficiency in the DeFi space.

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

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

• Project Introduction: Pell Network aims to create a decentralized token economy security leasing platform for the Bitcoin ecosystem. By building an aggregation of native BTC Stake and LSD re-staking services, it allows stake holders to choose to validate new software modules built on the Pell Network ecosystem.

• Latest developments: Pell Network has focused this week on perfecting the functionality of the PELL token and integrating the EGLD re-staking protocol. They have partnered with SovereignChains to launch an innovative Omnichain Bitcoin re-staking network and have established an exclusive partnership with Hatom Protocol to provide algorithmic lending solutions for the MultiversX ecosystem. Additionally, they have formed strategic collaborations with Atlas_Nodes and P2Pvalidator to jointly promote the development of Bitcoin re-staking. Meanwhile, Pell Network is actively preparing for the IDO issuance on xLaunchpad.

In summary, we can see that the projects with rapid TVL growth this week are mainly concentrated in the machine 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 the rise in the prices of underlying assets and the various DeFi projects issuing points. Therefore, for investors who are optimistic about the long-term prospects of the crypto market, returning to DeFi will be a very good choice.

• Fund Status: The TVL of Defi projects has risen from 53.5 billion US dollars last week to 53.8 billion US dollars now, an increase of 0.56%. For two consecutive weeks, there has been positive growth in the TVL across various tracks of Defi. This is mainly due to the market's optimistic outlook following Trump's assumption of the U.S. presidency in the first quarter, leading to a surge of funds entering the Defi industry, and the APY of various Defi projects has also increased, which has also attracted...