Crypto Market Weekly Report

Market Overview

This week, the crypto market continues to maintain a strong upward momentum. The market sentiment index has risen to 91%, indicating an extreme greed zone. Although Bitcoin briefly broke through $100,000 on Thursday before pulling back, its overall resilience remains strong. Ethereum has performed particularly well, driving the entire market upward, demonstrating investors' continued confidence in mainstream cryptocurrencies.

The market capitalization of stablecoins is steadily increasing, with USDT rising 1.74% to $141 billion and USDC increasing 2.03% to $40.2 billion, indicating a continuous inflow of new funds. On-chain data shows active large transfers, with clear signs of institutional funds entering the market. The over-the-counter premium remains within a reasonable range, and the supply and demand conditions in the market are healthy.

The total locked value in the DeFi sector ( TVL ) increased significantly from $46.8 billion to $53.2 billion, an increase of 13.67%. The performance of liquidity staking projects was particularly outstanding, mainly benefiting from the rise in underlying asset prices and improved staking yields. The activity level of lending protocols has significantly increased, reflecting a rise in leverage demand. DEX trading volume continues to rise, enhancing market activity.

The Meme coin sector performed relatively sluggishly this week, with a weekly return rate of only 11.94%. The issuance of new projects has decreased, and investor interest has waned. Funds are beginning to shift towards projects with practical application scenarios and fundamentals. Social media discussion heat has declined, indicating a decrease in investor risk appetite.

Layer 1 projects have gained the highest attention on social media, with the PayFi track achieving a weekly return rate of 40.04%. The AI Agent projects are starting to attract a new round of market attention, especially those on the Solana, TON, and Base chains. High-yield staking products in DeFi projects continue to be in focus. The NFT market's trading activity has seen a rebound, but overall valuations are still searching for a bottom.

Hot Track Analysis

Tron ecosystem

With the rapid rise in TRX token prices, the Tron ecosystem has gained high market attention. As the main trading chain for USDT, activities on the Tron chain have significantly increased:

• TVL increased from 7.97B to 9.32B, a growth of 16.93%, ranking first among major public chains.
• Active accounts reached 3.6725 million, a week-on-week increase of 18.06%
• The weekly trading volume of USDT is 131.4 billion USD, with a weekly increase of 16.23%.
• The TVL of the main projects in the ecosystem, Justlend and SUN, increased by 55.34% and 39.49% respectively.

AI Agent

The AI Agent track continues to heat up, mainly focusing on the Solana, Ton, and Base chains. It is primarily divided into three sub-directions:

1. AI Agent Meme tokens: such as GOAT, ACT, etc.
2. AI Agent Issuance Platform: such as vvaifu.fun(Solana), Virtuals Protocol(Base), Clanker(TON)
3. AI Agent underlying infrastructure

Tokens such as VVAIFU, VIRTUAL, and CLANKER have seen significant increases recently. OpenAI's latest actions have sparked renewed market interest in AI projects, and it is expected that the AI sector will experience good gains in the short term.

DeFi track

The top five projects with the largest increase in DeFi TVL this week:

1. BounceBit:134.26%
2. Astherus:102.65%
3. StakeDAO:77.17%
4. Flexa:74.51%
5. SaucerSwap:68.16%

The performance of liquid staking projects is particularly prominent, mainly benefiting from the rise in the prices of underlying assets. It is expected that as public chain prices increase, liquid staking projects will continue to maintain a strong growth trend.

Market Outlook

Key events next week:

• December 11: Microsoft shareholders meeting to discuss Bitcoin investment proposal
• December 13: US CPI data release
• December 14: European Central Bank interest rate decision

The market is expected to be significantly affected by macro data and the Microsoft voting results, potentially showing a volatile trend. Investors should maintain a cautious attitude and pay attention to the following aspects:

1. Manage risk well and set reasonable stop-loss.
2. Focus on laying out the tracks of liquid staking and AI Agent.
3. Pay attention to the impact of important events
4. Maintain sufficient liquidity and adopt a phased position-building strategy.

Liquidity staking protocols, gun pools, and DEXs in the DeFi space are expected to continue performing well. The AI Agent sector is worth paying attention to, especially projects related to token launch platforms. Overall, market sentiment remains optimistic, but investors should be cautious of potential risks.