Market Overview

Overview of Main Market Trends

The market sentiment index rose to 91%, indicating extreme greed. Although BTC briefly broke through $100,000 on Thursday before retracing, the overall market resilience remains strong. The strong performance of ETH has driven the overall rise of the cryptocurrency market, reflecting sustained confidence in mainstream coins.

The market capitalization of stablecoins is steadily increasing, with USDT up 1.74% to $141 billion and USDC up 2.03% to $40.2 billion, indicating a continuous influx of new funds into the crypto market. On-chain data shows frequent large transfer activities, with clear signs of institutional funds entering. The over-the-counter premium remains within a reasonable range, reflecting a healthy market supply and demand situation.

The total locked value (TVL) in the DeFi sector ( has significantly increased from $46.8 billion to $53.2 billion, a growth rate of 13.67%. Liquidity staking projects have performed the most outstandingly, mainly benefiting from the rise in underlying asset prices and the increase in staking yields. The activity level of lending protocols has notably risen, reflecting an increase in leverage demand. DEX trading volume continues to rise, indicating an increase in market activity.

The meme coin sector performed relatively sluggishly this week, with a weekly return rate of only 11.94%. The number of new project launches has decreased, and investor interest has clearly diminished. Funds are beginning to shift towards projects with practical application scenarios and fundamentals. The level of discussion on social media has declined, indicating a decrease in investor risk appetite.

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

Investment Advice

Investors are advised to maintain a cautiously optimistic attitude and pay attention to the following aspects:

1. Implement risk management, set reasonable stop-loss levels, and avoid excessive leverage.

2. Focus on laying out the liquidity staking and AI Agent track to seize the opportunities of fund rotation.

3. Pay attention to the impact of important events, including next week's Microsoft Bitcoin investment proposal )12/11/(, the US CPI data, and the ECB interest rate decision.

4. Maintain sufficient liquidity to respond to potential market fluctuations, and adopt a staggered entry strategy to avoid chasing highs.

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Market Sentiment Index Analysis

The market sentiment index has risen to 91%, a significant increase from last week's 83%, indicating that market sentiment is in an extreme greed phase.

Altcoins have basically shown a trend of upward fluctuations this week, following the market. ETH has performed strongly, leading to a general rise in Altcoins. Various public chain projects have driven up the projects within their ecosystems, and the market generally expects a rotation of funds to occur next, holding more confidence in the future performance of Altcoins.

The price of BTC briefly surpassed $100,000 on Thursday. Although it has since declined, market sentiment remains in an extreme greed phase. A certain level of pullback is still expected, and investors need to enhance their risk awareness.

Overview of Overall Market Trends

• The cryptocurrency market is in a fluctuating upward trend this week, and the sentiment index remains in the greed phase.

• DeFi-related projects have performed outstandingly, demonstrating the market's ongoing focus on improving basic yields.

• The AI Agent project is gradually gaining market attention, influenced by the traditional AI market, and there may be investment opportunities in the next half month.

• This week's Meme sector performance remains sluggish, with no additional market attention.

• Various public chain projects have seen a general rise under the leadership of ETH's increase.

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Hot Tracks

Tron Ecosystem

This week, as the price of TRX tokens has surged significantly, Tron has gained a very high level of market attention. With capital continuously entering the market, Tron, as the main trading chain for USDT, has also seen a substantial increase in on-chain activities this week.

On-chain data of Tron:

• TVL: Increased from 7.97B last week to 9.32B now, an increase of 16.93%, ranking first among all major public chains.

• Active accounts: The number of active accounts this week reached 3.6725 million, an increase of 18.06% compared to last week, maintaining a high growth rate.

• USDT weekly trading volume: reached 131.4 billion USD, an increase of 16.23% compared to last week, indicating a continuous growth in on-chain trading volume.

• DeFi project TVL growth: Justlend and SUN grew by 55.34% and 39.49% respectively, with funds continuously entering DeFi track projects.

Based on the above data, it can be seen that the Tron chain is maintaining a high-speed development at this stage. The TRX price has surged, underlying assets continue to rise, and coupled with the special position of USDT as the main trading chain, it attracts a large number of on-chain users to participate, driving the development of the entire Tron ecosystem.

AI Agent

At the end of last year, the AI concept entered the Crypto market, and the AI track has been a hotspot ever since. After the launch of the first AI Agent token GOAT in October this year, AI Agent Memes quickly became the new focus of the market. Following this, AI Agent Meme tokens like ACT emerged to lead the market. Investors' attention then shifted to AI Agent token launch platforms, with projects like Virtuals Protocol and vvaifu.fun rapidly gaining popularity and developing towards the underlying infrastructure of AI Agents. This has formed three segmented tracks: AI Agent Meme coins, issuance platforms, and underlying infrastructure.

At this stage, the AI Agent project is primarily developing on the Solana, TON, and Base chains. Hundreds of AI Agent Meme tokens are issued daily, making it difficult for investors to pinpoint a single project, leading some investors to turn to launch platforms. Solana mainly uses vvaifu.fun, Base mainly utilizes Virtuals Protocol and AI Agent Layer, and TON primarily employs Clanker. In the past two weeks, the prices of VVAIFU, VIRTUAL, and CLANKER have surged significantly, forming a certain market capitalization scale.

These projects have not yet been launched on major exchanges, but ACT, GOAT, and ANON in the AI Agent Meme have successively launched on top exchanges such as Binance, OKX, and Huobi. It is expected that the AI Agent token launch platform project will eventually be listed on major exchanges, and it is still in the early stages, making it worthwhile for investors to participate.

This Wednesday, OpenAI announced a 12-day live showcase of new products or samples every working day. This move has sparked market speculation around the AI sector. OpenAI became a leader in the AI industry after releasing ChatGPT last year, and every action it takes influences the development of AI sector projects. In the Crypto market, this impact is magnified. OpenAI's actions are bound to refocus market attention on the AI sector during the conference period, and if there is no significant turbulence in the Crypto market during this time, the AI sector could witness a nice increase over the next 10 days. Investors should pay more attention to AI sector projects in the short term, as investment opportunities may arise.

Traditional AI projects in the crypto market:

| Token | Project Name | Weekly Change | Circulating Market Cap | |------|----------|------------|----------| | TAO | Bittensor | 22.46% | $5,319,989,872 | | FET | Fetch.ai | 25.89% | $5,288,426,405 | | RENDER | Render | 19.65% | $5,227,613,836 | | WLD | Worldcoin | 43.41% | $2,986,557,188 | | AKT | Akash Network | 6.87% | $1,121,411,518 | | ARKM | Arkham | 15.36% | $830,921,472 | | GLM | Golem | 12.47% | $523,951,936 | | AGIX | SingularityNET | 20.58% | $296,226,702 | | TRAC | OriginTrail | 8.01% | $453,330,796 |

DeFi Track

TVL Growth Ranking

The top 5 projects with the highest TVL growth in the market over the past week, excluding projects with a smaller TVL of ), with a standard of over 30 million USD (, data source: Defilama.

| Project Name | Weekly Increase | TVL)million( | |----------|------------|---------------| | BounceBit | 134.26% | 450.13 | | Astherus | 102.65% | 132.13 | | StakeDAO | 77.17% | 176.42 | | Flexa | 74.51% | 338.32 | | SaucerSwap | 68.16% | 136.37 |

BounceBit)BB(: Recommendation Index: ⭐️⭐️⭐️⭐️

• Project Introduction: BounceBit is a re-staking infrastructure layer on the Bitcoin ecosystem. In deep collaboration with Binance, it structures high-yield CeDeFi components; it has built its own BounceBit Chain to create use cases for Restaking.

• Latest Development: This week, BounceBit has raised the staking interest rates for various tokens, with the 30-day annualized returns for USDT, BTC, BNB, and ETH reaching 35.45%, 39.85%, 25.91%, and 30.57% respectively, attracting a large number of users to participate in staking.

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

• Project Introduction: Astherus is a liquidity center for staked assets, supporting LST and LRT. Users' assets can earn staking APR and can also be used for trading spot and derivatives, stablecoin yields, and other profit strategies.

• Latest Developments: This week, partnered with Movement Labs to introduce the Movement Network chain. Binance Labs announced an investment in Astherus. Hosting an event where participating in staking with USDF, asUSDF, and asBTC can earn 5x AU points.

Stake DAO)SDT(: Recommendation Index: ⭐️⭐️⭐️

• Project Introduction: Stake DAO is a decentralized asset management platform that provides users with simplified access to various yield strategies, staking, trading, and metrics on a single dashboard.

• Latest developments: The yield rates of various products have significantly increased. The annualized APY of CRV, CAKE, PENDLE, FXN, BAL, and FXS in sdToken reached 20.46%, 28.78%, 89.35%, 102.16%, 94.75%, and 64.92% respectively, with market strategies reaching up to 152% APY. This has attracted a large number of users to participate.

Flexa) has not issued tokens(: Recommended Index: ⭐️⭐️

• Project Introduction: Flexa is committed to promoting the natural acceptance of cryptocurrencies in merchant settlement systems, enabling users to use digital assets in the real world through its payment network.

• Latest Developments: Recent offline development has made significant progress, allowing users to make payments at thousands of Flexa-supported stores and restaurants in the United States using the Flexa APP. Through the Zashi-Flexa integration, users can use ZEC in their everyday spending.

SaucerSwap)SAUCE(: Recommendation Index: ⭐️⭐️⭐️

• Project Introduction: SaucerSwap is a decentralized exchange on the Hedera chain that supports conventional trading functions and has launched the SAUCE Pro service, offering advanced features to users for a monthly subscription fee paid in SAUCE.

• Latest Developments: HBAR token surge drives up activity on the Hedera chain, with SaucerSwap, as the largest DEX, attracting a large number of user transactions. A $33,000 SAUCE buyback was executed, and the staking APY has been raised to 9.9%. The Epoch 28 event was launched, rewarding liquidity providers with 157,441.90 HBAR, plus additional HLQT rewards. As the largest DEX on Hedera, it has taken on almost all DEX trading volume, attracting more users as on-chain transactions heat up.

In summary, the projects with rapid TVL growth this week are mainly focused on the liquidity staking track )LRT(.

Overall Performance of the Track

• Stablecoin market capitalization steadily increases: USDT rises from 138.6 billion to 141 billion, an increase of 1.74%; USDC rises from 39.4 billion to 40.2 billion, an increase of 2.03%. Both USDT and USDC have grown, indicating a continuous influx of capital into the overall market.

• Liquidity is gradually increasing: The risk-free arbitrage rate in traditional markets continues to decline with interest rate cuts, while the arbitrage rate in on-chain DeFi projects is increasing due to the appreciation of crypto asset values, making a return to DeFi a good choice.

DeFi TVL by sector:

• Fund Status: The TVL of DeFi projects increased from $46.8 billion to $53.2 billion, a new increase of 13.67%, with a growth rate far exceeding the previous weeks, maintaining a continuous upward trend over the past two months, proving that funds are continuously entering DeFi projects.

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In-depth Analysis

Upward driving force:

After a correction, BTC price has risen again, and ETH has performed slightly better than BTC with a significant increase, both maintaining a strong growth trend. Market investors are more optimistic about future price trends and are more determined to hold. The recent strength of ETH has led to an increase in APY for various DeFi projects due to the rise in underlying assets, with investors actively participating to increase their holdings while retaining the original assets.