Market Overview

This week, the cryptocurrency market fluctuated downwards, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market value 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 Trump's failure to timely introduce cryptocurrency policies after taking office. Although Trump signed the cryptocurrency bill and repealed SAB-121 on Thursday, it did not significantly boost the market, leading to most tokens falling more than the overall market, and Altcoins performing weaker than the benchmark index.

Development of DeFi Ecosystem

The DeFi sector performed outstandingly, with TVL increasing 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 rise in the prices of underlying assets and project incentive points, with on-chain APY generally improving. Projects like Sumer.money and Meteora have shown remarkable TVL performance, indicating that investors are refocusing on the fundamental yields of DeFi.

Development of the AI Track

Influenced by Trump's $500 billion AI infrastructure plan, the total market value of the AI sector reached $41.9 billion, but subsequently adjusted due to low market sentiment. 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. The application of TEE technology and the emerging narrative of the agent economy are receiving attention.

Meme Coin Trends

This week, the focus of Meme coins is on the TRUMP and MELANIA tokens issued on Solana by Trump and Melania, resulting in a large influx of funds and attention directed towards these two tokens, while other Meme coins have significantly decreased, demonstrating the highly speculative and trend-following characteristics of the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out, especially Solana, which benefits from the issuance of the TRUMP token, with on-chain stablecoin supply reaching a new high of $10.138 billion. 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's FOMC meeting, the PCE price index, and tech stock earnings reports. The market is expected to remain volatile, but investors are optimistic about the opportunities that will arise after February as policies become clearer. The DeFi and AI sectors are likely to benefit from improved fundamentals and policy support, and competition in the public chain ecosystem will further intensify.

Market Sentiment Index Analysis

The market sentiment index has fallen from 35% last week to 10%, entering the extreme fear zone. Altcoins have generally underperformed the benchmark index this week, with most tokens experiencing declines greater than the overall market. This is mainly due to investors waiting for the Crypto legislation and policies in Trump's new administration. Although Trump signed the cryptocurrency bill and repealed SAB-121 on Thursday, it failed to significantly boost market sentiment. Investors are currently cautious about market investments, leading to a generally poor sentiment. Altcoins are expected to remain in sync with the benchmark index in the short term.

Overview of the Overall Market Trend

• The cryptocurrency market has been volatile this week, with the sentiment index entering the extreme fear zone.
• DeFi projects perform outstandingly, showing that the market continues to focus on increasing basic yields.
• The AI project has high public sentiment, indicating that investors are actively seeking the next market breakout.

Hot Tracks

The Rise of AI: From Trump's $500 Billion Infrastructure to 90% On-Chain Transaction Intelligence, Web3 Welcomes the Year of the AI Revolution

This week, following Trump's announcement of a $500 billion AI infrastructure plan over four years, the AI sector experienced an overall rebound, but fell back due to low market sentiment. Various projects continue to innovate: Virtuals Protocol updated its value accumulation mechanism, Swarms set up a 10 million token ecological fund and launched new features, AI16Z expanded its ecosystem with Near and Avalanche, Holoworld initiated Launchpool, and AIXBT continues to top the Kaito attention list. The market mainly revolves around autonomous trading agents, multi-agent collaboration frameworks, and infrastructure development, with TEE technology applications and emerging narratives like the agent economic system gaining attention.

According to Messari's predictions, by the end of 2025, 90% of on-chain transactions will be completed by AI agents. These smart agents can make micropayments based on real-time data, optimize liquidity pools, and allocate rewards, achieving more efficient and intelligent operations. It is evident 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 ( do not include smaller projects with a TVL below the standard of 30 million USD ):

1. Sumer.money( not issued): Recommendation Index ⭐️⭐️⭐️ Collaborating with multiple projects to promote NFT mint activities, TVL surpasses 100M, joining the Core Ignition program of Core DAO, revealing the Multipliers optimization strategy.

2. Meteora( Unreleased Token): Recommendation Index ⭐️⭐️⭐️ Introducing the "Liquidity Ratio Slider" feature, LP Army diversifies development, in collaboration with the Starseed team.

3. Silo Finance(SILO): Recommendation Index ⭐️⭐️ Launched S-ETH and S-USDC markets, offering up to 5,425% annual yield, in strategic partnership with Solv Protocol.

4. Aura(AURA): Recommendation Index ⭐️⭐️ Launched StableSurge Hook technology in collaboration with Balancer, increasing capital efficiency to 1:1.58.

5. Pell Network(PELL): Recommendation Rating ⭐️⭐️⭐️ Layout the full-chain BTC re-staking, in collaboration with SovereignChains to promote the Omnichain Bitcoin re-staking network.

Overall Performance of the Track

• Liquidity is gradually increasing: The APY of on-chain DeFi projects has significantly increased due to the rise in the prices of underlying assets and the distribution of points.
• Funding situation: Defi TVL increased to 53.8 billion USD, an increase of 0.56%, with positive growth for two consecutive weeks.

Performance in Other Tracks

Public Chain

1. Sonic: Integrates Chainlink cross-chain functionality, $250,000 DeFAI hackathon promotes the development of AI Agents.

2. Solana: The Trump couple's Meme coin sparks a craze, with on-chain stablecoin supply breaking 100 billion for a new high.

3. Core: Collaborate with SumerMoney to strengthen lending, innovative incentives for Coretoshi NFT.

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

5. Tron: High-profile appearance at the three major power centers in Washington.

Overview of Growth Rankings

The top 5 tokens with the highest growth in the market over the past week ( do not include tokens with very low trading volume and meme coins ):

1. VTHO: Promote the B3TR protocol upgrade to enhance security, with increased collaboration in the NFT ecosystem with UFC.

2. DEEP: DeepBook V3 daily trading volume breaks $52.6 million, setting a new record.

3. RAY: Seizing the opportunity of Trump concept coin to push 10x leveraged contracts.

4. BUZZ: Hive AI upgrades the Swarm distributed architecture to achieve multi-agent collaboration.

5. SOL: The Trump couple's Meme coin sparks a boom, the supply of on-chain stablecoins exceeds 100 billion.

Social Media Hot Topics

The most关注ed topic on social media this week is Layer 1 projects. The TRUMP coin has caused market fluctuations and capital diversion, while Layer 1 projects have stabilized and rebounded first due to high yields in DeFi.

Overall Overview of Market Themes

According to weekly return rate statistics, the DeFi sector performs the best, while the GameFi sector performs the worst.

• DeFi sector: LINK, UNI, and AAVE account for the largest share, totaling 74.54%, with the highest increase.
• Gamefi sector: Attention continues to decline, major tokens like IMX and BEAM have dropped significantly.

Upcoming Major Crypto Events Next Week

• January 30: The Federal Reserve FOMC announces interest rate decision; U.S. initial jobless claims; Tesla earnings report.
• January 31: U.S. December Core PCE Price Index Year-on-Year; OneKey Card service discontinued.

Next Week Outlook

• Macroeconomic factors: The Federal Reserve's interest rate meeting, PCE price index, and the US stock earnings season may trigger short-term fluctuations.
• Sector rotation: The DeFi sector is gaining attention due to improved yields; although the AI sector has seen a pullback, its long-term development prospects are promising.