Crypto Market Weekly Report: Decentralized Finance and AI Tracks Lead Market Recovery

Market Overview

This week, the crypto market has shown a significant warming trend, with the sentiment index rising from 11% to 35%. Although it is still in the panic zone, there has been a notable improvement. The market capitalization of stablecoins continues to grow, indicating that funds are still entering the market. The market recovery is mainly driven by two factors: US CPI data meeting expectations and optimistic expectations for the relaxation of crypto regulations. Overall, altcoins have performed better than the market, especially with significant gains in DeFi and AI-related tokens, indicating a trend of funds beginning to shift from Bitcoin to small-cap tokens.

The TVL of the DeFi sector increased slightly to $53.5 billion, a month-on-month growth of about 1%. It is worth noting that DeFAI, as a product combining Decentralized Finance and AI, saw its market value surge from $600 million to $3.2 billion within a week, demonstrating the market's strong appetite for innovative DeFi applications.

The AI Agent sector continues to show a strong development trend, shifting from simple AI token trading to deeper application scenario development. The rise of DeFAI marks the entry of AI applications in the encryption field into the 2.0 stage, mainly reflected in four directions: user-friendly AI interfaces, portfolio management, infrastructure construction, and market analysis forecasting. The development paths of leading projects such as Griffain, Anon, and AXIBT show that the market is transitioning from the proof-of-concept stage to the practical application stage.

The performance of the Meme coin sector has been relatively flat this week, with market attention significantly retreating from the high point of the last quarter of last year. This indicates that investor risk appetite is shifting from purely speculative Meme tokens to projects with actual application scenarios. However, as related topics gain traction, market expectations may foresee a new wave of Meme coin speculation centered around political themes.

Layer 1 public chains are showing a stable upward trend overall, but the growth rate is not as high as that of Decentralized Finance and AI sectors. Among mainstream public chains, those with advantages in AI and Decentralized Finance ecosystems perform better, reflecting that the value of underlying public chains increasingly relies on the prosperity of their upper-layer application ecosystems. It is worth noting that public chains supporting AI computation have begun to attract market attention, indicating that a new round of competition among public chains may revolve around AI computing capabilities.

Hot Tracks

Decentralized Finance AI

This week, DeFAI has become the focus of market attention, with its market capitalization rising from 600 million USD last week to 3.2 billion USD, achieving more than a fourfold increase within a week. The DeFAI space 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. Although DeFAI has experienced rapid growth and gained significant market attention recently, its current applications are still in the proof-of-concept stage, with most functionalities not yet realized, and investors should be aware of the risks of market speculation.

Decentralized Finance赛道

The top 5 projects in terms of TVL growth in the market over the past week include Folks Finance, Beets, AlphaFi, Echelon Market, and Astherus. These projects have all excelled in areas such as ecological cooperation, community incentives, and technical optimization. Overall, the TVL of DeFi projects has increased from $53 billion last week to $53.5 billion now, a growth rate of 0.94%, ending the negative growth situation that occurred in various tracks of TVL last week.

public chain

In the past week, the top 5 public chains with the highest TVL growth in the market are Sonic, Hyperliquid, Algorand, BSquared, and Mode. These public chains have made significant progress in terms of technological upgrades, ecosystem development, and strategic partnerships.

Market Outlook

The short-term market will be influenced by a special political event next Monday, with increased volatility expected. Investors are advised to focus on projects with existing practical application scenarios when selecting DeFAI projects, avoiding the pursuit of purely conceptual speculation. In terms of DeFi investments, opportunities for returns in gun pool projects can be considered, but leverage risks must be strictly controlled. Regarding timing, it is recommended to observe related policy changes in the short term to avoid blindly chasing highs and to ensure the safety of the investment portfolio.