Crypto Market Weekly: Web3 is ushering in the Year of the AI Revolution

This week, the crypto market showed a wide fluctuation trend, with the market sentiment index dropping from 35% last week to 10%, entering an extremely fearful range. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still entering the market. The poor market sentiment is mainly influenced by Trump's failure to promptly launch cryptocurrency-related policies after taking office. Although Trump issued cryptocurrency-related legislation on Thursday, it did not significantly boost market sentiment, resulting in most tokens declining more than the overall market.

The DeFi sector performed outstandingly, with TVL increasing from 53.5 billion to 53.8 billion dollars, a growth rate 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, with on-chain APY generally improving.

The total market value of the AI track reached 41.9 billion USD, but subsequently experienced a correction due to low market sentiment. Projects continue to promote technological innovation, with a focus on autonomous trading agents, multi-agent collaboration frameworks, and infrastructure construction. At the same time, the application of TEE technology and emerging narratives such as the Agent economic system are gradually gaining attention.

The focus of the Meme coin market is concentrated on the tokens TRUMP and MELANIA issued by Trump and Melania on Solana, leading to a sharp decline in other Meme coins, highlighting the high speculative nature of the crypto market.

In the public chain ecosystem, Solana and Tron stand out the most, especially Solana benefiting from the issuance of TRUMP tokens, with the on-chain stablecoin supply reaching a historic high of $10.138 billion.

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 technology stock earnings reports. The market is expected to maintain a volatile trend, but investors generally have a positive outlook for the opportunities brought by the gradual clarification of cryptocurrency policies after February. The DeFi and AI sectors are expected to continue benefiting from fundamental improvements and policy support.