Market Overview

The cryptocurrency market fluctuated downwards this week, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market capitalization of stablecoins continues to grow, with USDT reaching 138.9 billion and USDC reaching 51.9 billion, indicating that institutional funds are still entering the market. The low market sentiment is mainly influenced by the lack of cryptocurrency policies shortly after Trump's inauguration. Although Trump signed the cryptocurrency bill on Thursday and repealed the SEC's SAB-121, it failed to significantly boost market sentiment, resulting in most tokens dropping more than the overall market, with Altcoins performing weaker than the benchmark index.

Development of the DeFi Ecosystem

The DeFi sector performed outstandingly, with TVL increasing from $53.5 billion to $53.8 billion, a growth rate of 0.56%, marking two consecutive weeks of positive growth. This is mainly due to the rise in the prices of underlying assets and project incentive points, leading to a general increase in on-chain APY. Projects like Sumer.money and Meteora have shown impressive TVL, indicating that investors are refocusing on the basic yields of DeFi.

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 once reached $41.9 billion, but then retraced due to low market sentiment. Projects like Virtuals Protocol and Swarms continue to push for technological innovation, focusing on the layout of autonomous trading agents, multi-agent collaborative frameworks, and infrastructure construction. Emerging narratives such as TEE technology applications and agent economic systems are gaining attention.

Meme Coin Trends

This week, the focus of the Meme coin market is concentrated on the tokens TRUMP and MELANIA issued by Trump and Melania on Solana, resulting in a significant influx of funds and attention to the market, while other Meme coins have sharply declined, demonstrating the high speculative nature of the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out. Solana benefits from the issuance of TRUMP tokens, with the on-chain stablecoin supply reaching a historic high of $10.138 billion. Emerging public chains such as Sonic, Core, and BSquared continue to innovate in the fields of DeFi and AI, showcasing strong potential for ecological development.

Future Market Outlook

Looking ahead to next week, the market will focus on key events such as the Federal Reserve's FOMC meeting, the PCE price index, and earnings reports from tech stocks. The market is expected to maintain a volatile trend, but investors are generally optimistic about the opportunities that will arise as cryptocurrency policies gradually clarify after February. The DeFi and AI sectors are likely to continue benefiting from fundamental improvements and policy support, while competition in the public chain ecosystem will intensify.

Market Sentiment Index Analysis

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

Altcoins performed overall weaker than the benchmark index this week, with most tokens experiencing declines greater than the market. This is mainly because investors are generally waiting for the introduction of cryptocurrency legislation and policies in Trump's new administration. Although Trump signed the cryptocurrency bill on Thursday and repealed the SEC's SAB-121, it failed to significantly boost market sentiment, leading investors to adopt a cautious stance towards the market. Given the current market structure, Altcoins are expected to remain in sync with the benchmark index in the short term.

Overview of Overall Market Trends

• The cryptocurrency market has been in a volatile trend this week, with the sentiment index entering the extreme fear zone.

• DeFi-related projects have performed prominently compared to other sectors, showing that the market's focus on enhancing basic yields continues.

• The AI project has garnered significant public attention this week, indicating that investors are actively seeking 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, as Trump announced a $500 billion AI infrastructure plan for the next four years, the overall AI sector rebounded, but then fell back due to the overall low market sentiment.

Various projects are steadily advancing innovation: Virtuals Protocol updates its value accumulation mechanism, Swarms establishes a 10 million token ecological fund and plans to launch new features, AI16Z expands the Near and Avalanche ecosystems, Holoworld launches Launchpool, and AIXBT continues to top the Kaito attention list. The market mainly focuses on autonomous trading Agents, multi-Agent collaboration frameworks, and infrastructure construction, while emerging narratives such as TEE technology applications and Agent economic systems are gaining attention.

According to Messari's prediction, by the end of 2025, 90% of on-chain transactions will be completed by AI agents. These intelligent agents can perform micro-payments, optimize liquidity pools, and allocate rewards based on real-time data, achieving more efficient and intelligent operations. It is foreseeable that the Crypto market is about to enter the AI era.

DeFi Track

TVL Growth Ranking

The top 5 projects by TVL growth in the past week, excluding smaller projects not included in TVL, with a standard of over 30 million USD (:

1. Sumer.money) not issued (: ) recommendation index: ⭐️⭐️⭐️(

Collaborated with multiple projects to launch NFT minting activities. Sumer Money's TVL surpassed 100M, reached NFT cooperation with BeraSkool, joined the Core DAO's Core Ignition program, and the team revealed Sumer Money Multipliers optimization strategy.

2. Meteora) Token not issued(:) Recommendation index:⭐️⭐️⭐️(

Enhance user experience by launching the "Liquidity Ratio Slider" feature. The innovative feature simplifies liquidity adjustments, and the LP Army is diversifying its development to attract global users. Community events will be held to strengthen interaction and demonstrate continuous innovation capability.

3. Silo Finance)SILO(:)Recommendation Index:⭐️⭐️(

Launch S-ETH and S-USDC to increase user returns. New important markets offer high yields, collaborating with Solv Protocol to become the second largest protocol of Sonic Labs. Attract user participation through innovative mechanisms and diversified strategies.

4. Aura)AURA(:)Recommendation Index:⭐️⭐️(

Introducing the StableSurge innovative anti-peg mechanism, improving capital efficiency to 1:1.58. Collaborating with Balancer to launch new technology to prevent de-pegging risks and enhance LP returns. The Balancer v3 Boosted Pools will soon be launched, offering diversified returns. Partnering with GnosisChain to provide GNO cashback incentives.

5. Pell Network)PELL(:)Recommendation Index:⭐️⭐️⭐️(

Layout full-chain BTC re-staking. Promote the improvement of PELL token functions and integrate EGLD re-staking agreements, launching an innovative re-staking network in collaboration with SovereignChains. Reach an exclusive partnership with Hatom Protocol to provide algorithmic lending solutions for MultiversX.

In summary, the projects with rapid TVL growth this week are mainly concentrated in the gun pool project.

Overall Performance of the Track

• Liquidity is gradually increasing: On-chain DeFi projects are experiencing a significant increase in APY due to rising asset prices and incentive points, making them attractive to investors optimistic about the prospects of the Crypto market.

• Funding Situation: The TVL of DeFi projects increased from $53.5 billion to $53.8 billion, a growth of 0.56%, marking two consecutive weeks of positive growth. This is mainly due to the market's optimistic outlook on Trump's first quarter in office, leading to funds entering the DeFi sector, and the rise in project APY attracting on-chain capital participation.

![From Trump's $500 billion infrastructure to 90% on-chain trading intelligence, Web3 is ushering in the AI revolution year｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-f6f8af0bf54d847d18f50e2570e68323.webp(

Performance in Other Tracks

Public Blockchain

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

1. Sonic: The dual exchange launch ignites ecosystem enthusiasm, integrating Chainlink's cross-chain functionality, with a $250,000 DeFAI hackathon to promote AI Agent development.

Sonic integrates Chainlink's cross-chain and data feed capabilities, collaborating with OrderlyNetwork to provide cross-chain liquidity. $S is listed on OKX and Binance, launching the DeFAI hackathon to encourage AI agent development. Collaborating with multiple platforms to support token migration and enhance community interaction.

2. Solana: The Trump couple parachutes in to ignite the Meme craze, with on-chain stablecoin supply breaking the 100 billion mark, a new high.

The supply of stablecoins on the Solana chain has reached a record high of $10.138 billion. In collaboration with E Money Network, over 150 merchants worldwide are using Solana stablecoins for payments. Multicoin Capital has released a research report highlighting its technological advantages. Indie.fun has been added as a fundraising platform for games. Donald Trump and Melania Trump have issued TRUMP and MELANIA tokens, bringing significant traffic to Solana.

3. Core: A three-pronged approach to deeply cultivate the BTC consumer chain, partnering with SumerMoney to strengthen lending, and innovating incentives with Coretoshi NFT.

Core collaborates with SumerMoney to enhance lending features, optimizing the Sparks reward mechanism through Coretoshi NFTs to attract Bitcoin inflows and solidify its position. Plans to hold a DAO gallery event in Tokyo to launch Core Ignition to boost participation.

4. BSquared: Partnering with 0G_labs to create a decentralized AI operating system, laying out a BTC native AI Agent ecosystem.

B² Network collaborates with 0G_labs and Gaianet_AI to develop a decentralized AI operating system, deepening the integration of Bitcoin and AI Agents in partnership with ElizaOS_ai. In collaboration with utxostack, they launch the Lightning Genesis airdrop, showcasing multidimensional development dynamics.

5. Tron: Following Justin Sun's appointment as a crypto advisor to the Trump family, he made a high-profile appearance at three major events in the power center of Washington.

Tron participated in important events such as the Crypto Ball, President's Reception, and Candlelight Dinner in Washington D.C., engaging in dialogue with policymakers and industry leaders to promote the compliant development of cryptocurrency and the adoption of blockchain technology.

![From Trump's $500 billion infrastructure to 90% on-chain transaction intelligence, Web3 is迎来 the AI revolution year｜Frontier Lab Crypto Market Weekly])https://img-cdn.gateio.im/webp-social/moments-ba11a4866050ed37330b012dd0389660.webp(

Overview of the Rise Ranking

The top 5 tokens with the highest gains in the past week excluding tokens and meme coins with insufficient trading volume ):

1. VTHO: VeThor launches B3TR protocol upgrade to enhance security, UFC collaboration continues to strengthen NFT ecosystem layout.

VeThor promotes protocol upgrades and launches the B3TR feature, continuing collaboration with UFC to support NFT innovation projects. Optimizes staking and reward mechanisms to enhance user experience and yield. Deepens sustainable development layout in collaboration with Mugshot, showcasing a balanced strategy of technological innovation and application.

2. DEEP: DeepBook V3 daily trading volume breaks $52.6 million, setting a new record, and the advantage of low fees consolidates Sui's DeFi infrastructure position.

The DeepBook V3 version has a 24-hour trading volume of 52.6 million USD, reflecting its technological maturity and important position in DeFi. It emphasizes the advantage of low transaction fees and its positioning as "I am the pulse of DeFi," consolidating its status as a core infrastructure within the Sui ecosystem.

3. RAY: Raydium seizes the opportunity of Trump's concept coin to launch 10x leverage contracts, distributing 200,000 USDS as liquidity incentives.

Raydium launches $MELANIA and $TRUMP 10x leverage perpetual contracts, expanding the Perps product line. The USDS reward program is extended, offering USDS and RAY rewards in multiple pools to continuously attract users to enhance liquidity.

4. BUZZ: Hive AI upgrades the Swarm distributed architecture to achieve multi-agent collaboration, Market Agent intelligently tracks the strategies of top traders.

Hive AI achieves multi-agent collaboration through the Swarm distributed architecture, enhancing system performance. The Token Analysis Agent tool has been updated, introducing an experimental portfolio page to enhance support for Raydium protocol liquidity management. The Market Agent implements intelligent analysis of top trader behavior, showcasing data processing and analytical advantages.

5. SOL: The Trump couple parachuted in to ignite the Meme craze, with on-chain stablecoin supply breaking 100 billion, a record high.

SOL benefits from the favorable issuance of TRUMP and MELANIA tokens, with the on-chain stablecoin supply reaching a record high of $10.138 billion. Collaboration with E Money Network enables global merchants to use Solana stablecoin for payments. A research report from Multicoin Capital highlights its technological advantages. Indie.fun has been added as a fundraising platform for games.

Meme Token Price Increase Ranking

The market is broad this week.