The AI Track Remains Hot | Crypto Market Weekly Report

Market Overview

The market sentiment index rose from 10% to 19%, still in the panic zone but showing signs of recovery. Although market liquidity has not fully restored during the New Year's holiday, funds have begun to gradually flow back into the crypto market. Altcoins performed overall better than the benchmark index this week, but are expected to move in sync with the benchmark index in the short term.

The TVL of DeFi projects increased from 52.7 billion USD to 53.2 billion USD, with a growth rate of 0.95%, ending a two-week streak of negative growth. The performance of the Gun Pool project and Prep DEX project was outstanding, mainly benefiting from the rise in market base interest rates leading to improved yields, as well as increased demand for contract trading due to decreased liquidity during the holiday period.

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

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, with AI Meme projects experiencing significant gains. 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 benefiting from the increase in on-chain DeFi project APY and the development demand for AI projects. Among them, public chains that support AI development have shown outstanding performance, indicating that public chains are moving towards AI infrastructure.

Hot Tracks

AI Agent

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 through Virtuals and ai16z have seen significant increases, creating a wealth effect and attracting investor interest. The hottest topics in the market are the ai16z asset issuance platform and the infrastructure construction project Phala Network for self-issued tokens by AI Agents, indicating that market attention has shifted from AI Meme to AI infrastructure.

DeFi track

The top five projects with the highest TVL growth are mainly concentrated in gun pool and Prep DEX projects, including Resolv, Bluefin, StakeStone, Euler, and Hyperliquid. These projects attract capital inflow through product innovation, strategic partnerships, and user incentives.

In terms of stablecoin market capitalization, USDT has decreased slightly by 1.38% to $14.27 billion, while USDC has increased by 2.56% to $4.4 billion, indicating that funds predominantly from the US market are still entering continuously.

The total TVL of DeFi projects rose from $52.7 billion to $53.2 billion, an increase of 0.95%, ending two consecutive weeks of negative growth. It is expected that TVL will continue to rise after institutional investors return from holiday next week.

Performance in Other Tracks

public chain

The top five public chains with the highest TVL growth include Zircuit, Hyperliquid, Toncoin, ZKsync Era, and Solana. These public chains promote development through technological innovation, ecosystem collaboration, and product upgrades.

Top Gainers

The top five tokens with the highest increase are all related to the AI Agent track, including AI16Z, ATA, GRIFFAIN, VIRTUAL, and PHA. This reflects the market's continued enthusiasm for the AI Agent concept.

Social Media Hotspots

This week, the L1s projects received the highest attention on social media. As market sentiment improves, on-chain users are shifting their attention and funds to DeFi projects, leading to an increase in APY for DeFi projects on public chains, which in turn boosts TVL and trading volume. At the same time, AI projects continue to be hot, and public chain support for AI development is also driving its performance.

Outlook for Next Week

On the macro level, the release of U.S. employment data may affect the Federal Reserve's interest rate cut decisions, and is expected to bring market volatility. With the end of the holidays, institutional investors are returning, and market liquidity is expected to recover.

Investors are advised to maintain a defensive allocation, increasing the proportion of top assets such as BTC and ETH. They may moderately participate in high-yield liquidity pools and Prep DEX projects, but it is essential to strictly control positions and manage risks.