Crypto Market Weekly Report: Continuous Innovation in AI Sector, DeFi Liquidity Warming Up

This week, the crypto market has shown a wide range of fluctuations, 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 affected by policy uncertainties, leading to most tokens declining more than the overall market, with Altcoins overall underperforming the benchmark index.

Decentralized Finance ecosystem development

The DeFi sector performed well, with TVL increasing from $53.5 billion to $53.8 billion, a growth 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, leading to a general increase in on-chain APY. Projects like Sumer.money and Meteora showed impressive TVL performance, indicating that investors are starting to pay renewed attention to the foundational returns in the DeFi space.

Development of the AI Track

The total market capitalization of the AI sector reached $41.9 billion, but then experienced a pullback 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 collaboration frameworks, and infrastructure construction. The application of TEE technology and emerging narratives such as the agent economic system are gradually gaining attention.

Performance of Public Chain Ecosystem

Solana and Tron performed the most prominently, with Solana benefiting from the issuance of new Meme tokens, and 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 DeFi and AI fields, demonstrating strong ecological development potential.

Hot Track Analysis

• AI Sector: Various projects are steadily advancing technological innovation, with autonomous trading agents and multi-agent collaboration frameworks receiving significant attention.
• Decentralized Finance: TVL has seen positive growth for two consecutive weeks, and investors are refocusing on fundamental returns.
• Public chains: Solana, Tron, etc. perform outstandingly, and emerging public chains continue to innovate.
• Meme coins: Trump-related tokens have sparked a craze, leading to a significant drop in other Meme coins.

Future Market Outlook

Next week, the focus will be on events such as the Federal Reserve FOMC meeting, the PCE price index, and tech stock earnings reports. The market is expected to maintain a volatile trend, but investors generally remain optimistic about opportunities arising from clearer policies after February. The DeFi and AI sectors are expected to continue benefiting from improvements in fundamentals and policy support, while competition in the public chain ecosystem will further intensify.