The AI Track Continues to Heat Up | Crypto Market Weekly Report

Market Overview

This week, the overall trend of the crypto market is upward, with the market sentiment index rising from last week's 10% to 19%. Although it is still in the panic zone, it has shown signs of recovery. Despite the impact of the New Year's holiday not fully dissipating and market liquidity not completely restored, funds have started to gradually flow back into the crypto market. Altcoins have performed overall better than the benchmark index this week, but it is expected that they will maintain a synchronous trend with the benchmark index in the short term.

The total locked value (TVL) of DeFi projects increased from 52.7 billion USD to 53.2 billion USD, a growth of 0.95%, ending two consecutive weeks of negative growth, at (. The performance of the machine gun pool projects and perpetual contract exchanges was outstanding, mainly benefiting from the rise in market base interest rates leading to increased yields, as well as the increase in contract trading demand due to the decrease in liquidity during the holiday period.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-ad47d2c4b550eaf2d0027cb404455307.webp(

The AI Agent sector continues to maintain its position as a market hotspot, with a market size reaching 12.2 billion USD and a week-on-week growth of nearly 12%. Market attention is gradually shifting from AI Meme to AI infrastructure construction projects, among which the autonomous issuance of tokens by AI Agents has become the most关注的领域, with related infrastructure projects such as Phala Network standing out.

This week, the Meme coin market is mainly focused on AI-related projects, benefiting from the wealth creation effect brought by AI Agent's autonomous token issuance, leading to significant gains for AI Meme projects. This trend reflects that market funds are chasing AI-related concepts, but it also shows an increase in speculative characteristics.

Public chain projects performed well in this week's market rebound, mainly due to the increase in on-chain DeFi project APYs and the development demand for AI projects. Among them, public chains that support AI development, such as Solana and zkSync Era, have shown outstanding performance, indicating that public chains are evolving towards AI infrastructure.

Hot Track

) AI Agent

This week, the AI Agent track continues to be the focus of market attention, mainly driven by the self-issued tokens of AI Agents. Some Meme coins issued by Virtuals and ai16z have seen significant increases, creating a wealth effect and attracting investors to shift their attention and funds towards AI Agent's self-issued tokens. The highest market interest is in the ai16z asset issuance platform and the infrastructure construction project of AI Agent's self-issued tokens, Phala Network, indicating that the market's focus has shifted from AI Memes to AI infrastructure.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report]###https://img-cdn.gateio.im/webp-social/moments-0f85f182b6d6532e2b2c368b2d699201.webp(

) DeFi track

In the past week, projects with rapid TVL growth were mainly concentrated in gun pool projects and perpetual contract exchanges. Major projects include:

• Resolv: Delta neutral stablecoin project successfully launched a new type of liquidity pool and completed cross-chain expansion.
• Bluefin: A DEX on the Sui chain, completing Sui Bridge integration and upgrading the payment system.
• StakeStone: A comprehensive liquidity infrastructure, launching multi-chain Vault and achieving cross-chain functionality.
• Euler: Lending Protocol, the number of weekly active users has grown significantly
• Hyperliquid: A high-performance perpetual contract trading platform, has launched staking features on the mainnet and added AI-related token trading pairs.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report]###https://img-cdn.gateio.im/webp-social/moments-47031b8b8e8cd460e9f6e5ea638bbb71.webp(

) public chain performance

The public chains with rapid TVL growth in the past week include:

• Zircuit: Collaborating with AI teams to develop intelligent vaults and multi-chain trading infrastructure
• Hyperliquid: Launches staking feature and adds AI-related token trading pairs
• Toncoin: Develop BTC bridging solution and collaborate with Jupiter Exchange
• zkSync Era: released the "2025 is the year of ZK" declaration
• Solana: Launched the AI Agent Kit development toolkit and welcomed the new payment service online.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report]###https://img-cdn.gateio.im/webp-social/moments-f5d5f5594c5f0e4807d9b604c5ff77f6.webp(

Market Focus

1. Stablecoin market capitalization changes: USDT market cap decreased slightly by 1.38%, while USDC market cap increased by 2.56%, indicating that funds continue to enter the US market.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-18832731dc49c5eccc0d544f8b7ad642.webp(

2. On-chain capital flow: The TVL of DeFi projects ended two consecutive weeks of negative growth, increasing by 0.95% to $53.2 billion. It is expected that TVL will continue to rise after institutional investors return next week.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-d38d5310fde0d90b0e5ba2e7aa017489.webp(

3. Top Gainers: The top five non-Meme tokens with the highest gains this week are all related to the AI Agent sector, including AI16Z, ATA, GRIFFAIN, VIRTUAL, and PHA.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-8ab71119bb85b703f39ac46619b0e54f.webp(

4. Social Media Hotspots: L1 blockchain projects receive the most attention, mainly benefiting from increased DeFi yields and the demand for AI project development.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-22934a68e94fd0cab04b103c732be69f.webp(

5. Track Performance: The AI track performed the best, while SocialFi performed the worst. The AI track was driven by the enthusiasm for AI Agent's autonomous token issuance, while SocialFi was dragged down by the decline of TON.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-1b65e76fc437eded335fbc1ef22b93ce.webp(

Outlook for Next Week

1. The release of U.S. employment data may affect the Federal Reserve's interest rate cut decision, which is expected to bring market volatility.

2. With the end of the holiday, institutional investors are expected to return, and market liquidity is likely to recover.

3. The DeFi and AI Agent sectors are expected to continue to receive attention.

4. It is recommended that investors maintain a defensive allocation, increasing the proportion of top assets like BTC and ETH. They may moderately participate in high-yield liquidity pools and perpetual contract exchange projects but must strictly control their positions and manage risks effectively.