AI and Decentralized Finance Lead Market Rebound | Crypto Market Weekly Report

Market Overview

This week, the crypto market is showing a rebound trend, and market sentiment has improved. Although it is still a holiday, funds have started to gradually flow back in. DeFi and AI sectors are performing well, becoming market hotspots.

The market sentiment index rose from 10% last week to 19%. Although it is still in the panic range, it has shown signs of recovery. Overall, Altcoins performed better than the benchmark index, but are expected to move in sync with the benchmark index in the short term.

The TVL of DeFi projects reached 53.2 billion USD, with a week-on-week growth of 0.95%, ending a two-week trend of negative growth. The Gun Pool and Prep DEX projects performed outstandingly, benefiting from the rise in market base interest rates and the decline in liquidity.

The AI Agent track continues to maintain its heat, with a market size reaching $12.2 billion and a week-on-week growth of nearly 12%. Market attention is gradually shifting from AI Meme to AI infrastructure construction projects, among which AI Agent's self-issued tokens have become a focal area.

This week, the Meme coin market is mainly focused on AI-related projects, reflecting the market's capital chasing the AI concept, but also showing an increase in speculative characteristics.

Public chain projects have performed well in the market rebound, benefiting from the improvement in on-chain DeFi project APY and the development demand for AI projects. Public chains supporting AI development, such as Solana and zkSync Era, have stood out.

Hot Tracks

AI Agent

The AI Agent sector continues to be the market focus, primarily driven by the autonomous issuance of tokens by AI Agents. Some Meme coins issued through Virtuals and ai16z have seen significant increases, creating a wealth effect. Market attention has shifted from AI Meme to AI infrastructure, with projects like Phala Network standing out.

Decentralized Finance

The machine gun pool and Prep DEX projects are leading the Decentralized Finance track. The machine gun pool project benefits from the increase in APY brought about by the rise in market base interest rates. The Prep DEX project benefits from the increase in contract trading demand due to the decrease in liquidity during the holiday period.

Projects worth noting include:

• Resolv: Launching a new type of liquidity pool, completing cross-chain on the Base network
• Bluefin: Integrated Sui Bridge, upgraded payment system
• StakeStone: Launched multi-chain Berachain Vault, achieving cross-chain functionality.
• Euler: The number of users is growing rapidly, with new asset support.
• Hyperliquid: Launching staking feature, adding support for AI-related token trading.

public chain

The public chain track has performed brightly, mainly benefiting from the increase in APY of on-chain DeFi projects and the development demand for AI projects. Notable projects to pay attention to include:

• Zircuit: Collaborating with the AI team to develop a smart vault.
• Hyperliquid: Launch of staking feature, new support for AI token trading
• Toncoin: Development of a permissionless BTC bridging solution
• zkSync Era: Release 2025 strategic positioning
• Solana: Launches AI Agent Development Toolkit

Market Outlook

Next week, the market will welcome the release of U.S. employment data, which may impact the Federal Reserve's interest rate decision and is expected to bring market volatility. As the holiday comes to an end, institutional investors are expected to return, and market liquidity is likely to recover.

Suggestions for investors:

• Maintain a defensive allocation, increase the proportion of top assets such as BTC and ETH.
• You can moderately participate in high-yield gun pools and Prep DEX projects.
• Focus on the development of AI infrastructure and public chain projects
• Strictly control positions and manage risks.