Market Overview

This week, the cryptocurrency market has shown significant fluctuations, with the market sentiment index dropping from 35% last week to 10%, entering the extreme fear zone. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still flowing in; the poor market sentiment is primarily affected by the delay in the introduction of cryptocurrency-related policies following Trump's inauguration. Although Trump signed the cryptocurrency bill and the SEC repealed SAB-121 on Thursday, it did not significantly boost market sentiment, leading to most tokens dropping more than the overall market, and Altcoins performing weaker than the benchmark index.

DeFi Ecosystem Development

The DeFi sector has 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. Notably, projects like Sumer.money and Meteora have performed well in terms of TVL, indicating that investors are starting to refocus on the fundamental returns of 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 saw a correction due to sluggish 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, while the application of TEE technology and emerging narratives such as the Agent economy 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 Donald Trump and Melania Trump on Solana. This has led to a significant influx of funds and attention towards these two tokens, causing a sharp decline in other Meme coins, highlighting the high speculative nature and herd behavior characteristic of the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out the most, especially Solana which benefits from the issuance of the TRUMP token, with the on-chain supply of stablecoins reaching a historic high of 10.138 billion USD. At the same time, emerging public chains such as Sonic, Core, and BSquared continue to innovate 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 earnings reports from technology 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. DeFi and AI sectors are likely to continue benefiting from fundamental improvements and policy support, while competition in the public chain ecosystem will further intensify.

Market Sentiment Index Analysis

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

Altcoins performed overall weaker than the benchmark index this week, with most tokens experiencing larger declines than the overall market. This is mainly because market investors are generally waiting for the release of Trump’s new policies regarding Crypto legislation and regulations. Although Trump issued a cryptocurrency bill and the SEC repealed SAB-121 on Thursday, it did not significantly boost market sentiment, leading investors to be relatively cautious in their current market investments, resulting in a generally poor market sentiment. Given the current market structure, it is expected that Altcoins will remain in sync with the benchmark index in the short term.

Overview of Overall Market Trends

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

• DeFi-related crypto projects have shown outstanding performance compared to projects in other sectors, indicating that the market continues to focus on improving fundamental yields.

• There has been a high level of public sentiment regarding AI projects this week, indicating that investors are beginning to actively seek the next market breakout point.

Hot Tracks

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, with Trump's announcement of a $500 billion AI infrastructure plan for the next four years, the overall AI sector experienced a rebound. However, it subsequently fell back due to the overall market sentiment not being very high.

In the past week, various projects have not halted their innovative efforts due to the significant market volatility. Among them, Virtuals Protocol updated its value accumulation mechanism, Swarms established a 10 million token ecological fund and plans to launch new features, AI16Z expanded the Near and Avalanche ecosystems, and Holoworld launched its Launchpool. Meanwhile, AIXBT continues to top the Kaito attention leaderboard, indicating that various project teams are still steadily advancing their developments. Currently, the market is mainly focused on autonomous trading agents, multi-agent collaboration frameworks, and infrastructure construction. Additionally, emerging narratives such as TEE technology application validation, the formation of the agent economic system, and cross-chain agent ecosystem integration are gradually attracting market attention.

It is predicted that by the end of 2025, 90% of on-chain transactions will no longer be manually operated by real people, but will be completed by a group of artificial intelligence agents. These intelligent agents can not only perform 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 with the highest TVL growth in the market over the past week (excluding public projects with relatively small TVL, with a standard of over 30 million USD):

Sumer.money (Token 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 SuTokens (synthetic assets of USD, ETH, and BTC), providing users with a credit card-like experience.

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

Meteora (Token Not Yet Issued): (Recommendation Index: ⭐️⭐️⭐️)

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

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

• Latest Developments: Meteora has launched an innovative "Liquidity Ratio Slider" feature this week on the technical front, simplifying the process for users to adjust asset liquidity distribution; in terms of ecological construction, the LP Army is showing a trend of diversified development, attracting users from different languages and regions to participate in liquidity provision, and collaborating with the Starseed team; in community operations, activities such as LP Army community conference calls and Office Hours are being held to continuously strengthen interaction and communication with users, showcasing the project's ongoing innovation capabilities and globalization development strategy in the DeFi field.

Silo Finance (SILO): (Recommended Index: ⭐️⭐️)

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

• Project Introduction: Silo Finance is a decentralized, permissionless lending protocol that provides a secure and efficient money market by utilizing isolated elements. The design of Silo aims to address the main pain points of existing lending protocols, and the security flaws of shared pools are resolved by isolating each lending pool.

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

Aura (AURA): (Recommended Index: ⭐️⭐️)

Launch of StableSurge, innovative anti-anchor mechanism shows effectiveness, capital efficiency skyrockets to 1:1.58

• Project Introduction: Aura Network is a public chain project centered around NFTs, aimed at accelerating the adoption of blockchain internet for global NFTs. Aura Network provides an open system that maximizes interoperability and serves as the infrastructure layer for integrating NFTs into the metaverse.

• Latest Development: Aura has 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 enhancing the returns for LP holders during market fluctuations. Additionally, it will soon launch the v3 Boosted Pools on the platform, providing users with diversified sources of income, including rewards from trading, lending, T-Bills, and more. It is also collaborating with GnosisChain to offer up to 5% GNO cashback incentives. Aura demonstrates significant capital efficiency in governance, indicating that every dollar invested in incentives can yield $1.58 in output. Recently, it distributed over $300,000 in incentives to vlAURA voters during the recent dual periods, showcasing the project's continuous innovation and good operational efficiency in the DeFi sector.

Pell Network (PELL): (Recommended Index: ⭐️⭐️⭐️)

Pell Network lays out the 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 restaking services, it allows stake holders to choose to verify new software modules built on the Pell Network ecosystem.

• Latest Developments: Pell Network has focused on enhancing the functionality of the PELL token and integrating the EGLD re-staking protocol this week. It has partnered with SovereignChains to launch an innovative Omnichain Bitcoin re-staking network and has established an exclusive partnership with Hatom Protocol to provide algorithmic lending solutions for the MultiversX ecosystem. Additionally, strategic collaborations have been formed 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 a rapid increase in TVL this week are mainly focused on the machine gun pool projects.

Overall Performance of the Track

• Increasing liquidity: 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 adopting a points distribution model. Therefore, for investors who are optimistic about the long-term prospects of the crypto market, returning to DeFi will be a very good choice.

• Funding situation: The TVL of Defi projects has risen from $53.5 billion last week to $53.8 billion now, an increase of 0.56%. There has been a positive growth in the TVL of various Defi tracks for two consecutive weeks, mainly due to the market's optimistic outlook following Trump's inauguration as President of the United States in the first quarter. As a result, funds have flowed into the Defi industry, and the APY of various Defi projects has increased, attracting on-chain capital participation, which in turn has driven the rise in the TVL of the Defi market.

Performance in Other Tracks

Public Chain

The top 5 public chains by TVL growth in the past week (excluding public chains with smaller TVL):

Sonic: Dual Exchange Launch