Crypto Market Weekly Report

Market Overview

This week, the crypto market has shown a wide range of fluctuations, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market capitalization 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 poor market sentiment is mainly influenced by the lack of timely introduction of cryptocurrency-related policies after Trump's inauguration. Although Trump signed the cryptocurrency bill and repealed SAB-121 on Thursday, it failed to significantly boost market sentiment, leading to most tokens falling more than the overall market, with Altcoins performing weaker than the benchmark index.

DeFi ecosystem development

The DeFi sector has shown outstanding performance, with TVL increasing to $53.8 billion, a growth rate of 0.56%, marking two consecutive weeks of positive growth. This is mainly attributed to the rise in the prices of underlying assets and project incentive measures, with on-chain APY generally improving. Projects like Sumer.money and Meteora have performed impressively in terms of TVL, indicating that investors are starting to refocus on the basic yields in the DeFi field.

AI track development

Affected by Trump's announcement of a $500 billion AI infrastructure plan, the total market value of the AI sector reached $41.9 billion, but subsequently experienced a correction due to sluggish market sentiment. In terms of projects, 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. At the same time, the application of TEE technology and emerging narratives such as the Agent economic system are gradually gaining attention.

Meme coin trend

This week, the focus of the Meme coin market is concentrated on the tokens TRUMP and MELANIA issued by Trump and Melania on Solana, which has led to a significant influx of funds and attention towards these two tokens, causing a sharp decline in other Meme coins, highlighting the high speculative nature and trend-following characteristics of the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out the most, especially Solana, which benefits from the issuance of the TRUMP token, with the on-chain stablecoin supply reaching a historic high of $10.138 billion. Meanwhile, emerging public chains such as Sonic, Core, and BSquared continue to innovate in the DeFi and AI sectors, 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 FOMC meeting, PCE price index, and tech stock earnings reports. The market is expected to maintain a volatile trend, but investors are generally optimistic about the opportunities that will arise after February as the encryption policy becomes clearer. The DeFi and AI sectors are likely to continue benefiting from improvements in fundamentals and policy support, while competition in the public chain ecosystem will further intensify.