The AI track continues to thrive | Crypto market weekly report

Market Overview

This week, the cryptocurrency market is showing an upward trend, with the market sentiment index rising from 10% to 19%. Although it is still in the panic zone, it has shown signs of warming up. Despite the fact that market liquidity has not fully returned during the New Year's holiday, funds have begun to gradually flow back. Overall, Altcoins are performing better than the benchmark index, but it is expected that they will maintain a synchronized trend in the short term.

The TVL of DeFi projects increased from $52.7 billion to $53.2 billion, ending two consecutive weeks of negative growth. The performance of gun pools and Prep DEX projects was outstanding, mainly benefiting from the rise in market base rates and a decrease in holiday liquidity.

The AI Agent sector continues to maintain a hot position, with a market size reaching $12.2 billion and a week-on-week growth of nearly 12%. Market focus has shifted from AI Memes to AI infrastructure projects, among which the AI Agent's self-issued tokens are the most noteworthy, and related infrastructure projects have performed exceptionally.

This week, the Meme coin market is mainly focused on AI-related projects, benefiting from the wealth creation effect brought by AI Agent's autonomous token issuance, with AI Meme projects experiencing significant growth. This reflects the market's capital chasing the AI concept, but also shows an increase in speculation.

Public chain projects performed well during this week's rebound, mainly benefiting from the increase in on-chain DeFi project APY and the demand for AI project development. Public chains supporting AI development, such as Solana and zkSync Era, have stood out, indicating that public chains are developing towards AI infrastructure.

Hot Tracks

AI Agent

The AI Agent track continues to be the market focus, mainly due to the AI Agent independently issuing coins. Some Meme coins issued through Virtuals and ai16z have seen a significant rise, creating a wealth effect and attracting investor attention. The market focus has shifted from AI Meme to AI infrastructure, with projects like the ai16z asset issuance platform and Phala Network standing out.

DeFi track

In the past week, projects with rapid TVL growth are mainly concentrated in Gun Pool and Prep DEX projects:

• Resolv: Successfully launched a new type of liquidity pool, completed cross-chain expansion on the Base network, and collaborated with several well-known projects.
• Bluefin: Completed Sui Bridge integration, upgraded payment system, launched liquidity mining project.
• StakeStone: Launched the multi-chain Berachain Vault, achieving cross-chain functionality and collaborating with multiple projects to establish an ecosystem.
• Euler: The number of active users has reached the level of Compound, collaborating with multiple projects to launch high-yield strategies.
• Hyperliquid: The mainnet has launched the staking feature, and added support for AI-related token leveraged trading.

public chain

Outstanding public chains include:

• Zircuit: Collaborating with multiple AI projects to launch a multi-reward program.
• Hyperliquid: Launched staking feature, added AI token leveraged trading.
• Toncoin: Develops a permissionless bridging solution for BTC, with USDT circulation exceeding 1 billion USD.
• zkSync Era: Release 2025 strategic positioning.
• Solana: Launched AI Agent development toolkit, multiple GameFi projects announced development plans.

Market Outlook

Next week, the United States will announce employment data, which may affect the Federal Reserve's interest rate cut decision and is expected to bring market volatility. As the holiday ends, institutional investors are returning, and market liquidity is expected to recover.

Suggestions for investors:

• Maintain defensive positioning
• Increase the allocation ratio of leading assets such as BTC and ETH.
• Participate moderately in high-yield gun pools and Prep DEX projects
• Strictly control positions and manage risks.