Crypto Market Weekly Report: DeFi Zone Valuation Restructuring, Zone Rotation Evident

Market Overview

Market Main Trends

• The market sentiment index has dropped from 91% to 53%, remaining in the greed zone, but BTC is maintaining high fluctuations while altcoins are generally under pressure, leading to an increase in market differentiation.
• The market capitalization of USDT and USDC has both increased by 2.91% and 3.23% respectively, (. The total TVL of Decentralized Finance continues to rise to 54.1 billion USD, and the market is still attracting new funds to enter.
• The Decentralized Finance zone leads the market with a 16.47% weekly return rate, DEX trading volume hits a new high of 630 billion in 2024 ), showing strong development momentum.
• Meme coins are returning to the market spotlight, performing actively amidst market fluctuations, bringing new liquidity and user growth points to the crypto market.
• DEX projects receive the highest attention, while AI, GameFi and other zones show weak performance, with market hotspots concentrating on infrastructure and liquidity zones.
• It is advised that investors remain cautious, focusing on opportunities in re-staking projects and the DEX zone, while closely monitoring the market fluctuations that may arise from next week's Federal Reserve meeting.

( Market Sentiment Index Analysis

• The market sentiment index has dropped from 91% last week to 53%, remaining in the bullish zone.
• Altcoins performed weaker than the benchmark index this week, showing a fluctuating downward trend. After a decline in the first half of the week, most assets failed to recover lost ground.
• Affected by leveraged positions, the market has seen approximately $2 billion in forced liquidations, significantly deleveraging long positions.
• Given the current market structure, it is expected that altcoins will remain in sync with the benchmark index in the short term, with a low probability of independent market movements.

![Decentralized Finance zone valuation reconstruction, zone rotation is evident｜Frontier Lab crypto market weekly report])https://img-cdn.gateio.im/webp-social/moments-5b2c1a2fbf59c11db9d1fd054e4bdd62.webp###

( Overview of the overall market trend

• The crypto market has been in a broad fluctuation trend this week, and the sentiment index remains in the bullish phase.
• Decentralized Finance related projects have performed outstandingly, showing the market's ongoing attention to increasing baseline returns.
• DEX projects performed well this week, indicating that on-chain investors are beginning to actively participate in on-chain investment activities.
• The Meme zone has returned to the spotlight and is starting to attract market attention.

Hot Zone

) DEX

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

DEX on-chain data:

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

The DEX zone shows a clear trend of business model upgrading. Leading protocols such as Hyperliquid and dYdX are experiencing a transformation from single trading functions to integrated financial infrastructure, based on their own chain architecture, achieving vertical integration through functional aggregation to create a one-stop Decentralized Finance service ecosystem. Such architectural innovations signify the evolution of the DEX track towards comprehensive financial infrastructure, and the reconstruction of track value is underway.

SUI

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

Sui链上Decentralized Finance项目数据:

• 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, a growth rate of 3.39%
• DEX trading volume: exceeded $35 billion, daily average trading volume $466 million
• Decentralized Finance项目TVL增量:排名前三项目增速分别为1.14%、17.22%和1.72%

In summary, the Sui chain maintains rapid development, with the SUI price outperforming the market, driving the APY growth of 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 in the market by TVL growth over the past week ### do not include smaller projects, with a standard of over 30 million USD ###:

| Project Name | Last Seven Days Growth | 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 |

( overall performance of the zone

• Stablecoin market value steadily increased: USDT grew by 2.91% to $145.1 billion, USDC grew by 3.23% to $41.5 billion, indicating a continuous inflow of funds into the market.
• Liquidity is gradually increasing: The risk-free arbitrage rate in traditional markets is declining, while the arbitrage rate of on-chain DeFi projects is increasing due to the rise in the value of encryption assets, making a return to DeFi a good choice.
• Funding situation: The TVL of DeFi projects has increased from 53.2 billion USD to 54.1 billion USD, a growth of 1.69%, continuing to rise for the past two months, with funds continuously flowing into DeFi projects.

) in-depth analysis

Upward driving force:

The core driving factors of this round of rise and their transmission path: The market enters a bull market cycle, leading to an increase in liquidity demand, pushing up the level of basic borrowing interest rates, and amplifying the profit space of arbitrage loop strategies in Decentralized Finance protocols. Specifically:

• Market Environment: Bull market cycle brings overall liquidity demand increase
• Interest rate side: The benchmark lending rate has risen, reflecting the market's expectations for funding pricing.
• Yield side: The yield of the circular arbitrage strategy has expanded, and the endogenous income of the protocol has significantly improved.

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

![Decentralized Finance zone valuation reconstruction, zone rotation evident｜Frontier Lab crypto market weekly report]###https://img-cdn.gateio.im/webp-social/moments-b30b5d38b44bf527742aea9a0a7119f6.webp###

Other zone Performance

( public chain

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

| Project Name | Increase in the Last Seven Days | 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 |

( Overview of the Growth Rate Rankings

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

| Token | Project Name | Seven-Day Growth Rate | 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% |

( Meme Token Growth Ranking

| Token | Project Name | Weekly Growth Rate | Circulating Market Cap | Public Blockchain | |-----|--------|---------|--------|-------| | 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 |

( social media hotspot

This week, the most frequently mentioned topic on social media is DEX, with the following tokens listed: ) does not include tokens with too small trading volumes and meme coins ###.

| 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% | -13.32% | | IDEX | 0.6681 | 0.7399 | 90.29% | 16.35% | | SNX | 10.7003 | 10.7137 | 99.99% | 6.27% |

( Overall Overview of Market Themes

| zone | Weekly Return Rate | Monthly Return Rate | Quarterly Return Rate | |-----|--------|--------|--------| | Decentralized Finance | 16.47% | 82.52% | 131.34% | | RWA | 4.02% | 77.21% | 116.86% | | PayFi | 2.71% | 167.79% | 234.46% | | Layer1 | 1.58% | 23.11% | 63.56% | | Cefi | 0.74% | 17.99% | 38.86% | | Meme | -2.37% | 14.15% | 184.93% | | Layer2 | -2.83% | 51.27% | 70.42% | | NFT | -3.65% | 43.78% | 111.69% | | SocialFi | -6.12% | 20.05% | 16.04% | | Depin | -6.69% | 53.91% | 76.17% | | Gamefi | -7.05% | 67.73% | 96.13% | | AI | -7.24% | 31.55% | 68.97% |

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

Next Week's Major Events in the Crypto Market

• Tuesday ) November 17 ### US November Retail Sales MoM
• Wednesday ( December 18th ) Hong Kong "Stablecoin Ordinance Draft" submitted to the Legislative Council for first reading.
• On Thursday, (, December 19, ), the Federal Reserve's interest rate decision ( upper limit ), the Federal Reserve announced the interest rate resolution and economic outlook summary.
• Friday ( December 20 ) United States November Core PCE Price Index Year-on-Year, Asia Blockchain and AI Week Hainan International Blockchain Zone

Outlook for Next Week

( Macro Factors Assessment

• The market has fully digested the expectation of a 25 basis point rate cut at the Federal Reserve's December meeting.
• Focus shifts to Chairman Powell's speech and economic outlook summary to assess the direction of monetary policy in January 2025.
• In the short term, Microsoft shareholders' meeting resolutions and macro data may dominate market sentiment, and the crypto market is expected to maintain a volatile pattern.

) zone rotation trend

• Decentralized Finance zone: Restaking ( projects benefit from rising risk aversion sentiment, and capital allocation preferences have increased. Under the backdrop of increased market volatility, the DEX zone has seen a rise in on-chain activity driven by arbitrage demand, indicating a positive outlook for the sector.

• AI zone: The agent segmentation zone maintains high attention, with a market scale reaching 6-7 billion US dollars. The integration of Web2 and Web3 ecosystems is accelerating, and the process of integrating data networks and functional AI Agents with existing encryption products is speeding up.

) Investment Strategy Recommendations

• Maintain defensive allocation, focusing on the safe-haven properties of top assets BTC and ETH.
• While hedging risks, you can opportunistically layout high-quality zones of Decentralized Finance with intrinsic returns.
• It is recommended that investors remain cautious, strictly control their positions, and manage risks effectively.

![Decentralized Finance zone valuation reconstruction, zone rotation evident｜Frontier Lab crypto market weekly report]###https://img-cdn.gateio.im/webp-social/moments-919ab535cfdb7d31d4a6427cd31ee908.webp###