Crypto Market Weekly Report: Decentralized Finance Sector Valuation Reconstruction, Zone Rotation Emerges

Market Overview

The main trend of the market

• The market sentiment index has dropped from 91% to 53%, still in the greed zone, but BTC is experiencing high volatility while other tokens are generally under pressure, leading to increased market differentiation.
• The market capitalization of USDT and USDC has both increased, and the total TVL of DeFi continues to rise to $54.1 billion, indicating that the crypto market is still attracting new funds.
• The Decentralized Finance zone leads the market with a weekly return rate of 16.47%, and DEX trading volume hits a new high for 2024, demonstrating strong development momentum.
• The Meme coin market has returned to the spotlight, showing active performance amid market fluctuations, bringing new liquidity and user growth points to the market.
• DEX projects have received the highest attention, while AI, GameFi, and other sectors are showing weak performance, reflecting the market trend shifting towards infrastructure and liquidity zones.
• Investors are advised to remain cautious, focusing on opportunities in re-staking projects and the DEX zone, while also paying attention to potential market volatility arising from the Federal Reserve's interest rate meeting.

Market Sentiment Index Analysis

• The market sentiment index has dropped from 91% last week to 53%, still within the bullish zone.
• Other tokens performed weaker than the market this week, showing a fluctuating downward trend.
• Affected by leveraged positions, the market experienced approximately $2 billion in forced liquidations, and long positions significantly deleveraged.
• It is expected that other tokens will stay in sync with the overall market in the short term, with a low probability of independent market trends.

Overview of overall market trends

• The crypto market experienced wide fluctuations this week, with the sentiment index still in the bullish phase.
• Decentralized Finance related projects performed outstandingly, showing the market's ongoing attention to improving base yields.
• DEX projects performed well this week, indicating that on-chain investors are starting to participate actively.
• The Meme zone has returned to the spotlight, gaining attention from the market.

Hot Zone

DEX

This week, the market price fluctuated greatly, creating many profit opportunities for investors. On-chain investors are actively using DEX for trading, driving the growth of DEX projects.

On-chain data of DEX:

• TVL: Increased from last week's 25.22B to 26.58B, a growth of 5.39%, with funds actively entering DEX projects.
• Weekly trading volume: Reached a peak of $63 billion in 2024, with a trading volume of $7.58 billion in the last 24 hours, a surge in trading volume.

The DEX zone is showing a significant trend of business model upgrades. Leading protocols represented by Hyperliquid and dYdX are transitioning from a single trading function to a comprehensive financial infrastructure. This evolutionary path is manifested by: protocols based on their own chain-level architecture achieving vertical integration through functional aggregation, creating a one-stop Decentralized Finance service ecosystem. Such architectural innovations signify that the DEX track is evolving from a single trading level to a comprehensive financial infrastructure, with the reconstruction of track value currently underway.

SUI

The Sui ecosystem has seen high discussion activity this week, with the SUI price rising by 7.8%, outperforming BTC and ETH. The growth of DeFi projects within the Sui ecosystem has been impressive.

Sui chain Decentralized Finance project data:

• TVL: Increased from 1.598B to 1.793B, a growth of 12.88%
• Accounts: A total of 66,543,317, an increase of 2,184,755 from last week, growth rate of 3.39%
• DEX trading volume: The main DEXs are Cetus, Aftermath Finance, and BlueMove DEX, with a total trading volume exceeding 35 billion USD this week and an average daily trading volume of 466 million USD.
• Decentralized Finance项目TVL增长: 排名前三的NAVI Protocol、Suilend和Aftermath Finance本周TVL增速分别为1.14%、17.22%和1.72%

The Sui chain maintains rapid development, with the SUI price outperforming the market, driving APY growth for on-chain DeFi projects. Market fluctuations create profit opportunities, attracting a large number of users to participate and promoting the overall development of the Sui ecosystem.

Decentralized Finance zone

TVL Growth Ranking

The top 5 projects by TVL growth in the past week ( do not include projects with a lower TVL, with a standard of over 30 million USD ):

| Project Name | Weekly Growth Rate | TVL(million) | |---------|-----------|--------------| | Synthetix | 87.69% | 576.82 | | Babylon | 67.32% | 3782.36 | | Usual Money | 53.61% | 833.76 | | BounceBit | 50.31% | 664.98 | | Equilibria | 40.27% | 281.03 |

Synthetix(SNX):

• Project Introduction: A decentralized synthetic asset protocol on Ethereum that allows users to mint synthetic assets by collateralizing SNX tokens.
• Latest developments: Increased LP users' APY, raising the V3 LP trading fee share from 40% to 60%; completed the acquisition of the leveraged token platform TLX, integrating leveraged token features.

Babylon( has not issued tokens):

• Project Introduction: A project aimed at enhancing the security of other PoS blockchains by leveraging the security of Bitcoin, activating idle Bitcoin assets through a trustless staking mechanism.
• Latest developments: BTC's high position drives users to choose BTC-based earning projects; Binance announces that users can directly stake BTC in Babylon from their accounts to earn rewards, bringing in significant new funds.

Usual Money(USUAL):

• Project Introduction: A stablecoin project supported by Binance, providing new stablecoin solutions through a decentralized approach.
• Latest developments: After the Checker upgrade, the annualized yield for USD0++ holders reaches 48%, and the average APY for USD0/USD0++ and USD0/USDC in the Curve exceeds 50%, attracting users to participate in high-yield arbitrage.

BounceBit(BB):

• Project Introduction: The underlying layer of re-staking on the Bitcoin ecosystem, built with deep cooperation with Binance to structure CeDeFi components, and the self-built BounceBit Chain.
• Latest developments: Increased staking rates for various tokens, with the 30-day annualized returns for USDT, BTC, BNB, and ETH reaching 54.25%, 24.55%, 37.13%, and 37.7%, respectively; partnered with Ondo to introduce tokenized RWA.

Equilibria(EQB):

• Project Introduction: The Machine Gun Pool project uses Pendle's veToken model to provide high returns for LPs.
• Latest developments: Strengthened cooperation with Curve to launch enhanced pools, raising user APY to a maximum of 59%, attracting a large number of users to participate in arbitrage.

Overall, this week the projects with rapid TVL growth are primarily concentrated in the stablecoin yield zone ( machine gun pool ).

zone overall performance

• Stablecoin market capitalization steadily increases: USDT rises by 2.91% to $145.1 billion, USDC rises by 3.23% to $41.5 billion, indicating continuous inflow of funds into the market.
• Liquidity is gradually increasing: The risk-free arbitrage rates in traditional markets are declining, while the arbitrage rates in on-chain Decentralized Finance projects are increasing due to the rise in encryption asset values, making a return to DeFi a good choice.
• Funding Situation: The TVL of DeFi projects rose from 53.2 billion USD to 54.1 billion USD, with a new funding increase of 1.69%, maintaining a continuous upward trend for nearly two months.

In-depth Analysis

The core driving factors of this round of increase:

1. Market Environment: The bull market cycle brings an overall increase in liquidity demand.
2. Interest rate side: The basic lending rate rises, reflecting the market's pricing expectations for funds.
3. Yield Side: The yield rate of the cyclical arbitrage strategy has expanded, and the protocol's endogenous earnings have significantly improved.

This transmission mechanism strengthens the intrinsic value support of the Decentralized Finance zone, forming a positive growth momentum.

Performance in Other Zones

public chain

In the past week, the top 5 public chains by TVL growth in the market ( do not include public chains with smaller TVL ):

| Project Name | Weekly Increase | TVL(million) | |---------|-----------|--------------| | Hyperliquid | 21.23% | 2606.34 | | Sui | 14.45% | 1870.36 | | Algorand | 10.99% | 201.15 | | PulseChain | 7.33% | 953.99 | | Bitcoin | 6.99% | 4854.36 |

Hyperliquid: Unsettled contracts reach $3.5 billion, surpassing DYDX to become the largest on-chain Perp DEX; trading volume rapidly expanded after the launch of the popular project ME.

Sui: The Move ecosystem leader is attracting market attention; collaborating with Backpack and Phantom wallets to support SUI tokens; the on-chain Meme coin KAPI is gaining popularity, attracting traffic and funds; the daily trading volume of the on-chain DEX has exceeded $466 million.

Algorand: On-chain Meme coin MONKO is hot; announced support for RWA zone projects; two major stablecoins USDCa and EURD comply with European MiCA standards.

PulseChain: On-chain Meme coins are active; the trading volume of the largest DEX PulseX has increased by 62%; it is rumored in the market that PLS will be listed on Binance.

Bitcoin: Outperforming the market, users are optimistic about future increases; the BTCFi project attracts users to deposit BTC for additional earnings.

Overview of the Gainers List

The top 5 tokens with the highest gains in the past week ( do not include tokens with very low trading volume and meme coins ):

| Token | Project Name | Weekly Change | Circulating Market Cap | Circulation Rate | |------|---------|-----------|----------|--------| | USUAL | Usual | 98.57% | $257,540,796 | 8.37% | | BGB | Bitget | 95.01% | $4,816,158,400 | 69.99% | | SUSHI | Sushi | 65.77% | $473,147,704 | 69.06% | | ORCA | ORCA | 48.16% | $299,415,167 | 53.27% | | ACX | Across Protocol | 45.88% | $382,450,514 | 44.39% |

USUAL: After the Checker upgrade, holders of USD0++ have an annual yield of 48%, and the APY for related trading pairs in Curve exceeds 50%.

BGB: Launched popular Meme tokens; CEO announced considering re-entering the US market; trading volume surpasses OKX to become the third largest CEX.

SUSHI: Launched Dojo Agent and Tweet Token features to support tweet tokenization; proposed a diversified funding strategy.

ORCA: Collaborating with multiple business lines of Binance; launching a no-code Token creation tool; supporting the Solana AI Hackathon

ACX: Cooperation with Binance to launch ACX token; collaboration with HTX Global and Bitvavo exchanges; partnership with Yodl to provide cross-chain payment services.

Meme Token Price Increase Ranking

| Token | Project Name | Weekly Growth Rate | Circulating Market Value | Associated Public Chain | |------|---------|-----------|----------|----------| | FARTCOIN | Fartcoin | 187.53% | $507,074,756 | Solana | | BABYDOGE | Baby Doge Coin | 117.03% | $861,228,822 | BSC | | WOLF | LandWolf | 74.42% | $235,865,534 | Ethereum | | TURBO | Turbo | 52.45% | $879,341,386 | Ethereum | | DOG | DOG•GO•TO•THE•MOON (Runes) | 40.57% | $957,481,330 | Bitcoin |

This week, Meme projects have returned to the market spotlight, performing well amidst market fluctuations, creating on-chain wealth effects, and attracting more users to participate.

Social Media Trends

According to data from LunarCrush and Scopechat, the most frequently mentioned topic this week is DEX, with the following tokens making the list: (12.7-12.13).

| Token | Market Cap ( Billion ) | FDV ( Billion ) | Circulation Rate | Weekly Change Rate | |------|---------|---------|--------|----------| | UNI | 112.8657 | 187.9582 | 60.04% | 19.92% | | SUSHI | 4.4686 | 6.4703 | 69.06% | 56.87% | | RAY | 15.9033 | 30.3401 | 52.42% | 6.83% | | CRO | 51.0851 | 56.4775 | 90.45% | -12.36% | | HYPE | 60.8653 | 182.2691 | 33.39% | 36.98% | | AERO | 16.1813 | 32.0813 | 50.43% | 18.65% | | JOE | 2.0533 | 2.7218 | 75.43% | 1.23% | | CRV | 13.6694 | 24.0634 | 56.81% | 3.26% | | INJ | 29.1079 | 29.7848 | 97.72% | -13.