Decentralized Finance leads the crypto market Rebound DEX volume hits a new high for the year

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Crypto Market Weekly Report

Market Overview

main market trends

  • The market sentiment index has dropped from 91% to 53%, still in the greed zone, but BTC is experiencing high-level fluctuations while altcoins are generally under pressure, leading to increased market divergence.
  • Both USDT and USDC market values have increased, with the total TVL in DeFi continuing to rise to 54.1 billion USD, attracting new funds into the crypto market.
  • The DeFi sector leads the market with a weekly return rate of 16.47%, and DEX trading volume has reached a new high for 2024, showing 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 receive the highest attention, while AI, GameFi, and other sectors show weak performance, with market hotspots concentrating on infrastructure and liquidity sectors.
  • It is recommended that investors remain cautious, focusing on opportunities in re-staking projects and the DEX sector, while closely monitoring the Federal Reserve's monetary policy meeting.

DeFi track valuation reconstruction, sector rotation evident|Frontier Lab crypto market weekly report

Market Sentiment Index Analysis

  • The market sentiment index has fallen from 91% last week to 53%, still remaining in the bullish range.
  • Altcoins performed weaker than the benchmark index this week, showing a fluctuating downward trend.
  • Affected by leveraged positions, the market saw approximately $2 billion in position liquidations, with long positions significantly deleveraging.
  • It is expected that altcoins will remain in sync with the benchmark index in the short term, with a low probability of independent market trends.

Overview of the overall market trend

  • The crypto market has been experiencing a wide range of fluctuations this week, with the sentiment index still in a bullish phase.
  • DeFi-related projects have shown outstanding performance, demonstrating the market's ongoing focus on enhancing basic yields.
  • DEX projects performed well this week, indicating that on-chain investors are beginning to actively participate in on-chain investment activities.
  • The meme track has returned to the spotlight and is starting to attract market attention.

Hot Track

DEX

This week, due to significant overall price fluctuations in the market, many profit opportunities have been created 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%
  • Weekly trading volume: Reached $63 billion, a new high for 2024, with a nearly 24-hour trading volume of $7.58 billion.

The DEX sector shows a clear trend of business model upgrading. Leading protocols represented by Hyperliquid and dYdX are transitioning from single trading functions to comprehensive financial infrastructure, creating a one-stop DeFi service ecosystem. Such architectural innovations signify that the DEX track is evolving towards an all-encompassing financial infrastructure, with a reconstruction of track value currently underway.

DeFi track valuation reconstruction, sector rotation evident|Frontier Lab crypto market weekly report

SUI

The Sui ecosystem has seen high discussion activity this week, with the SUI price rising by 7.8%, outperforming BTC and ETH.

Sui chain data:

  • TVL: Increased from 1.598B to 1.793B, a growth of 12.88%
  • Total accounts: Reached 66,543,317, an increase of 3.39% compared to last week.
  • DEX trading volume: Average daily trading volume reaches $466 million
  • Main DeFi projects TVL growth rate: NAVI Protocol 1.14%, Suilend 17.22%, Aftermath Finance 1.72%

Sui chain maintains rapid development, with APY growth in on-chain DeFi projects attracting a large number of users to participate, driving the entire ecosystem's development.

DeFi track

TVL Growth Ranking

The top 5 projects by TVL growth in the crypto market over the past week ( TVL > 30 million USD ):

  1. Synthetix: 87.69%
  2. Babylon: 67.32%
  3. Usual Money: 53.61%
  4. BounceBit: 50.31%
  5. Equilibria: 40.27%

Overall performance of the track

  • The market capitalization of stablecoins is steadily increasing: USDT up 2.91%, USDC up 3.23%
  • The TVL of DeFi projects increased from 53.2 billion USD to 54.1 billion USD, a growth of 1.69%.
  • Traditional market risk-free arbitrage rates are decreasing, while on-chain DeFi project arbitrage rates are increasing, leading to a capital inflow into DeFi.

in-depth analysis

The core driving factors of this round of increase:

  1. The bull market cycle drives the increase in liquidity demand.
  2. The level of base lending rates is rising
  3. The profit space of the DeFi protocol arbitrage loop strategy is expanding.

This transmission mechanism strengthens the intrinsic value support of the DeFi sector, creating positive growth momentum.

Performance in Other Tracks

public chain

The top 5 public chain TVL increases in the market over the past week:

  1. Hyperliquid: 21.23%
  2. Sui: 14.45%
  3. Algorand: 10.99%
  4. PulseChain: 7.33%
  5. Bitcoin: 6.99%

Overview of the Rise Ranking

The top 5 tokens with the highest price increase in the past week, excluding tokens and meme coins with very low trading volume (:

  1. USUAL: 98.57%
  2. BGB: 95.01%
  3. SUSHI: 65.77%
  4. ORCA: 48.16%
  5. ACX: 45.88%

This week's rise in the rankings shows a characteristic of sector concentration, with most of the rising tokens belonging to the public chain track.

) Meme Token Gain Ranking

  1. FARTCOIN: 187.53%
  2. BABYDOGE: 117.03%
  3. WOLF: 74.42%
  4. TURBO: 52.45%
  5. DOG: 40.57%

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

Social Media Hotspots

According to data from LunarCrush and Scopechat, the most frequent topic this week from ### 12.7-12.13( is DEX. DEX projects generally show an upward trend, performing better than other tracks, mainly due to the increased trading opportunities brought by market fluctuations this week.

Overall Overview of Market Themes

According to weekly return rate statistics, the DeFi sector performed the best ) 16.47% (, while the AI sector performed the worst ) -7.24% (.

![DeFi track valuation reconstruction, sector rotation is evident|Frontier Lab crypto market weekly report])https://img-cdn.gateio.im/webp-social/moments-88728426a72772ae8fbf3803502d9a48.webp(

Preview of Major Crypto Events Next Week

  • December 17: U.S. November Retail Sales MoM
  • December 18: The Hong Kong "Stablecoin Regulatory Framework" submitted for the first reading in the Legislative Council.
  • December 19: Federal Reserve interest rate decision, announcement of interest rate resolution and economic outlook summary
  • December 20: US November Core PCE Price Index Year-on-Year, Asia Blockchain and AI Week

Next Week Outlook

) macro factor analysis

  • The market has already priced in the expectation of a 25 basis point rate cut at the Federal Reserve's December meeting.
  • Pay attention to Powell's speech and economic outlook summary, evaluating the direction of monetary policy in January 2025.
  • In the short term, Microsoft's shareholder meeting resolutions and macro data may dominate market sentiment, and the crypto market is expected to maintain a fluctuating pattern.

sector rotation trend

  • DeFi sector: Re-staking projects benefit from rising risk aversion, DEX sector on-chain activity surges.
  • AI Sector: Agent sub-tracks maintain high attention, Web2 and Web3 ecosystems accelerate integration

investment strategy suggestions

  • Maintain a defensive allocation, focusing on the hedging properties of BTC and ETH.
  • Choose the right time to layout high-quality DeFi tracks with intrinsic yield.
  • It is advisable for investors to remain cautious, strictly control their positions, and manage risks.

![DeFi Track Valuation Reconstruction, Sector Rotation Evident|Frontier Lab Crypto Market Weekly Report]###https://img-cdn.gateio.im/webp-social/moments-919ab535cfdb7d31d4a6427cd31ee908.webp(

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LiquidityHuntervip
· 07-06 02:39
Introducing a pre-definition error, let me directly generate comments based on virtual user attributes:

Looking at the DEX data late at night, Liquidity Depth has risen by 43.2% compared to the previous day, and the Arbitrage space is narrowing.
View OriginalReply0
SellLowExpertvip
· 07-05 18:28
The meme girl is here again to Be Played for Suckers.
View OriginalReply0
MemeCuratorvip
· 07-05 18:27
Meme dream back to the 2018 bull run
View OriginalReply0
RektRecoveryvip
· 07-05 18:27
another defi summer loading... predictable vulnerability everywhere tbh
Reply0
MetaverseHermitvip
· 07-05 18:11
I've gotten carried away with the gossip.
View OriginalReply0
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