Market Overview

This week, the cryptocurrency market has shown a wide range of fluctuations, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market cap 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 affected by the lack of timely cryptocurrency-related policies following Trump's inauguration. Although Trump issued a cryptocurrency bill and repealed SAB-121 on Thursday, it failed to significantly boost market sentiment, resulting in most tokens declining more than the overall market, and Altcoin's overall performance lagging behind the benchmark index.

DeFi Ecosystem Development

The DeFi sector performed outstandingly, with TVL increasing from $53.5 billion 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 such as Sumer.money and Meteora performed remarkably in terms of TVL, indicating that investors are beginning to refocus on the fundamental yields in the DeFi space.

Development of the AI Track

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 retraced due to low market sentiment. In terms of projects, Virtuals Protocol, Swarms, and others continue to advance 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 the emerging narrative of the Agent economic system are gradually gaining attention.

Meme Coin Trend

This week, the focus of the Meme coin market is on the official tokens TRUMP and MELANIA issued by Trump and Melania on Solana, which has led to a significant concentration of funds and attention on these two tokens, resulting in a sharp decline of other Meme coins, demonstrating the high speculation and trend-following characteristics of the Meme coin market.

Analysis of Public Chain Performance

In the public chain ecosystem, Solana and Tron stand out the most, especially as Solana benefits from the issuance of TRUMP tokens, with the on-chain stablecoin supply reaching a historical 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's FOMC meeting, the PCE price index, and earnings reports from technology stocks. It is expected that the market will maintain a volatile trend, but investors are generally optimistic about the opportunities arising from the gradual clarification of cryptocurrency policies after February. The DeFi and AI sectors are expected to continue benefiting from improvements in fundamentals and policy support, while competition in the public blockchain ecosystem will further intensify.