Crypto Assets Market Weekly Report

Market Overview

This week, the Crypto Assets market has shown a warming trend, with the sentiment index rising from 11% to 35%. Although it remains in the panic zone, there is a significant improvement. The market capitalization of stablecoins continues to grow, with USDT reaching 137.4 billion and USDC reaching 46.5 billion, indicating that institutional funds are still entering the market. The market recovery is mainly driven by two factors: the US CPI data meeting expectations and the optimistic outlook on policy easing. The overall performance of small-cap tokens has outperformed the broader market, especially the significant gains in DeFi and AI-related tokens, reflecting a shift of funds from Bitcoin to small-cap tokens.

The total locked value in the DeFi sector is ( TVL, which has slightly increased to 53.5 billion USD, representing a month-on-month growth of about 1%. It is noteworthy that DeFAI, as a product combining DeFi and AI, saw its market cap surge from 600 million USD to 3.2 billion USD within a week, indicating strong market interest in innovative DeFi applications.

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The AI Agent sector continues to maintain a strong development trend, shifting from simple AI token trading to deeper application scenario development. The rise of DeFAI marks the entry of AI applications in the Crypto Assets field into the 2.0 phase, primarily reflected in user-friendly AI interfaces, portfolio management, infrastructure development, and market analysis and forecasting. Leading projects such as Griffain, Anon, and AXIBT show that the market is transitioning from the proof-of-concept stage to the stage of practical application.

The Meme coin sector performed relatively flat this week, with market attention significantly retreating from the high point in the fourth quarter of last year. This indicates that investors' risk appetite is shifting from purely speculative Meme tokens to projects with practical application scenarios. However, as politically related topics heat up, the market anticipates a new wave of Meme coin speculation centered around political themes.

Layer 1 public chains are showing an overall stable upward trend, but the increase is not as significant as that of the DeFi and AI sectors. Among mainstream public chains, those with advantages in AI and DeFi ecosystems are performing better, reflecting that the value of underlying public chains increasingly relies on the prosperity of their upper application ecosystems. It is worth noting that public chains supporting AI computation are beginning to attract market attention, indicating that a new round of competition among public chains may revolve around AI computational capabilities.

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Hot Tracks

) DeFAI

The market capitalization of the DeFAI track surged from $600 million to $3.2 billion within a week, increasing over four times. DeFAI projects can be classified into four categories: abstract/user-friendly AI, yield optimization and portfolio management, DeFAI infrastructure or platforms, and market analysis and forecasting. Currently, DeFAI is still in its early stages, with most projects focused on abstract AI and market analysis forecasting. Representative projects include Griffain, Anon, and AXIBT. Although DeFAI has gained significant attention, most functionalities are still in the proof of concept stage. Investors should pay attention to the actual implementation and be wary of market hype risks.

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) DeFi track

This week's projects with rapid TVL growth are mainly concentrated in the machine gun pool projects, such as Folks Finance, Beets, AlphaFi, etc. These projects attract users through liquidity staking, automated yield optimization, and other methods. Overall, the TVL of DeFi projects rose from 53 billion USD last week to 53.5 billion USD, an increase of 0.94%, ending last week's negative growth trend. This is mainly due to the overall upward trend in the market and optimistic expectations for policy easing, attracting funds back into DeFi projects.

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) public chain track

In terms of public chains, Sonic, Hyperliquid, Algorand, and others have performed exceptionally well. Sonic has launched various DeFi applications supported by crypto assets, innovatively introducing real-time deposit features. Hyperliquid successfully launched the SOLV token, achieving "Day 1 three-terminal synchronization." Algorand has completed a significant upgrade to version 4.0, preparing for the upcoming staking reward mechanism. Overall, public chains with advantages in AI and the DeFi ecosystem have performed well, and public chains supporting AI computation are also starting to gain attention.

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Market Outlook

The short-term market will be influenced by the Federal Reserve's meetings and policy changes, with increased volatility expected. Investors are advised to focus on DeFAI projects that have actual application scenarios, avoiding the pursuit of purely conceptual speculation. In terms of DeFi investments, attention can be given to yield opportunities in machine gun pool projects, but strict control of leverage risk is necessary. Regarding timing, it is recommended to observe policy changes in the short term, avoiding blind chasing of highs to ensure the safety of the investment portfolio.

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In the coming week, the market's main focus will be on policy trends and their impact on Crypto Assets. The DeFi and AI sectors are expected to continue leading the market, and investors should closely monitor the actual implementation of DeFAI projects. At the same time, the public chain sector may see a new round of competition centered around AI computing power. Overall, the market may continue its oscillating upward trend, but volatility may increase, and investors need to remain vigilant and manage risks appropriately.

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