Crypto Assets Market Weekly Report

Market Overview

This week, the Crypto Assets market has shown a clear warming trend, with the sentiment index rising from 11% to 35%. Although it is still in the panic zone, there has been 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 warming is mainly driven by two factors: first, the US CPI data met expectations, and second, there is an optimistic expectation in the market regarding the new government's potential easing of encryption regulations. Small-cap tokens have generally outperformed the broader market, especially DeFi and AI-related tokens, reflecting a trend of funds beginning to flow from Bitcoin to small-cap tokens.

The total locked value in the DeFi sector has slightly increased to 53.5 billion USD, up about 1% month-on-month. Notably, DeFAI, as a product combining DeFi and AI, saw its market value surge from 600 million USD to 3.2 billion USD within a week, reflecting the market's strong enthusiasm for innovative DeFi applications.

The AI Agent sector has continued its strong momentum since the end of last year, shifting from simple AI token trading to deeper application scenario development. The rise of DeFAI signifies that the application of AI in the Crypto Assets field has entered the 2.0 stage, mainly reflected in four directions: user-friendly AI interfaces, portfolio management, infrastructure development, and market analysis predictions. The development paths of leading projects like Griffain, Anon, and AXIBT indicate that the market is transitioning from the proof-of-concept phase to the actual application phase.

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

Layer 1 public chains have shown a stable upward trend overall, 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 have performed better, reflecting that the value of underlying public chains increasingly depends on the prosperity of their upper-layer application ecosystems. It is noteworthy that public chains supporting AI computation are beginning to attract market attention, indicating that a new round of public chain competition may revolve around AI computing capabilities.

Market Sentiment Index Analysis

The market sentiment index has risen from 11% last week to 35%, still in the panic zone but showing some recovery. Small-cap tokens have outperformed the benchmark index this week, with most tokens seeing larger gains than the overall market. This is mainly due to this week's CPI data and the market's optimistic expectations for future relaxation of crypto regulation, which have driven market prices up. Given the current market structure, small-cap tokens are expected to remain in sync with the benchmark index in the short term.

Hot Tracks

DeFAI

This week, DeFAI has become the market focus, with its market value soaring from 600 million USD last week to 3.2 billion USD, achieving over a fourfold growth within a week. The DeFAI sector can be divided into four categories of projects: abstract/user-friendly AI, yield optimization and portfolio management, DeFAI infrastructure or platforms, and market analysis and forecasting. Representative projects include Griffain, Anon, and AXIBT. Although DeFAI has experienced rapid growth recently and gained significant market attention, it is still in the proof-of-concept stage, with most functionalities yet to be realized. Investors should pay attention to the implementation of DeFAI projects in various fields and be wary of market speculation risks.

DeFi track

In the past week, the TVL of DeFi projects rose from $53 billion to $53.5 billion, an increase of 0.94%. This is mainly due to the overall upward trend in the market this week, especially after the U.S. CPI was announced, leading to a broad market rally that attracted funds back into DeFi projects. At the same time, the market holds an optimistic view on future policy directions, further driving capital inflow into the DeFi industry and boosting TVL.

Projects worth paying attention to include:

• Folks Finance: Collaborated with DeBank to implement xChain account monitoring features and launched a governance incentive program with rewards of up to 4 times.

• Beets: Its Liquid Staked S token (stS) staking volume surpassed 88.99 million in less than a month, exceeding FTM's nearly three-year high record.

• AlphaFi: Launched an optimized liquidity solution, with its LST product contributing approximately 10% of the trading volume on the Sui chain.

• Astherus: Launched the USDF stablecoin, TVL quickly surpassed $100 million, with a 24-hour trading volume reaching $1.2 billion.

Performance in Other Tracks

public chain

Outstanding public chain projects include:

• Sonic: Launching a DeFi application that supports multiple Crypto Assets, innovatively introducing real-time deposit functionality.

• Hyperliquid: Successfully launched the SOLV coin, achieving "Day 1 three-end synchronization".

• Algorand: Completed a significant upgrade to version 4.0, launching the NodeKit tool to simplify node operation.

• BSquared: Actively promoting Bitcoin's transformation into an AI innovation center, supporting the development of AI-driven agents.

• Mode: Demonstrating strong momentum in the DeFAI field, launching Season 4 "Agentic Economy" plan.

Overview of the Gains Ranking

The tokens with the highest increase this week include ANON, BUZZ, CGPT, ARC, and GRIFFAIN. These projects have made significant progress in technological innovation, ecological expansion, and strategic collaboration.

social media hot topics

This week, the most关注度 on social media is Layer 1 projects. The overall market is showing wide fluctuations, rebounding after the release of CPI data. The APY of DeFi projects on various public chains is rising, attracting more users to participate, driving market attention and funds back to public chain projects.

Next Week Outlook

Next week, the market will be influenced by the new government's inauguration, and fluctuations are expected to intensify. It is recommended that investors focus on projects within the DeFAI sector that have existing practical application scenarios, avoiding the chase for 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 risks is necessary. In the short term, it is advised to observe policy changes and avoid blindly chasing highs to ensure the safety of the investment portfolio.