Market Overview

This week, the crypto market is showing a downward trend during the holiday period, with market sentiment remaining in the extreme fear zone. Despite the overall weakness, USDC, which is primarily based on the U.S. market, still achieved a 1.91% increase, indicating that institutional funds continue to enter.

The TVL of the DeFi sector slightly decreased by 0.37% to 52.7 billion USD, but projects like the Gun Pool and other stablecoin yield programs performed well. The supply of stablecoins continues to grow, indicating that underlying liquidity is consistently flowing in.

The AI Agent track continues to attract attention, with a total scale reaching $10.9 billion. The aipool model combined with TEE technology has become a new focal point and is expected to become a new type of asset issuance method following "inscriptions."

Due to the holidays and the market downturn, Meme coins have shown poor performance, with a noticeable decrease in investor participation and capital inflow.

The public chain sector shows strong resilience against downturns. Stacks has achieved the sBTC milestone, BOB is advancing the BitVM Bridge, and Taiko has launched its ecological plan, with major public chains continuing their technological innovation and ecological development.

Looking ahead, the market is expected to remain sluggish during the New Year period. It is recommended to maintain a defensive allocation, increase the proportion of top assets, and moderately participate in high-yield liquidity pool projects. In the long term, the first quarter of 2025 may welcome a rise, and AI Agent and DeFi liquidity pool projects are worth paying attention to.

Market Sentiment Index Analysis

The market sentiment index has risen from 7% last week to 10%, remaining in the extreme fear zone. Altcoins are underperforming the benchmark index, showing a significant decline. The Christmas holiday has led to decreased liquidity, resulting in increased price volatility. Altcoins are expected to move in sync with the benchmark index in the short term, with a low probability of independent market trends. Extreme fear often indicates a potential bottom, which could flip upwards at any time.

Overview of Overall Market Trends

• The cryptocurrency market fell this week, with sentiment still in extreme fear.
• Defi projects have shown outstanding performance, indicating increased market attention towards improving basic returns.
• The AI Agent sector has high public interest, and investors are actively searching for the next breakout point.

Hot Tracks

AI Agent

This week, the overall market has declined, with all sectors dropping, but the discussion around AI Agents is the highest. The market is buzzing about the impact of the AI Agent + TEE model, such as aipool, on the future of Crypto.

Every periodic surge is driven by new asset issuance methods, such as ICO, IEO, INO, IDO, and inscriptions. Currently, aipool has become a hotspot and is a continuation of "money-making FI" at the beginning of 2024. If widely accepted, it may trigger a new wave of asset issuance frenzy, which is worth paying close attention to.

The top five AI Agent projects by market capitalization:

| Project Name | Market Cap ( million USD ) | 7-Day Change | |---------|--------------|-----------| | Fetch.ai | 601.36 | -15.08% | | SingularityNET | 576.28 | -7.48% | | Ocean Protocol | 305.17 | -7.27% | | Oasis Network | 282.35 | -12.52% | | Akash Network | 229.87 | -11.50% |

DeFi Track

TVL Growth Ranking

The top 5 projects by TVL growth in the past week ( TVL > 30 million USD ):

| Project Name | Weekly Growth Rate | TVL( million USD) | |---------|-----------|---------------| | Resolv | 82.04% | 239.01 | | USDX Money | 74.25% | 446.42 | | Usual | 55.56% | 1599.36 | | Hashnote | 52.54% | 1652.47 | | Spectra | 51.81% | 122.55 |

Resolve ( unissued tokens ):

• Project Introduction: The Delta Neutral Stablecoin Project focuses on the tokenization of market-neutral investment portfolios.
• Latest Development: Technical upgrade completed, transforming into an Omnichain project; ecosystem growth of 84%; USDC Vault offers 36.36% APY

USDX Money( Unissued Coin):

• Project Introduction: An emerging synthetic dollar stablecoin protocol that offers a new type of crypto-native stablecoin solution through multi-chain and multi-currency strategies.
• Latest developments: UI/UX upgrade completed; liquidity pool launched on Curve; sUSDX reaches $170 million TVL; incentive program launched.

Usual(USUAL):

• Project Overview: A stablecoin project supported by Binance, providing new stablecoin solutions.
• Latest developments: Secured $10 million in Series A funding; launched new product UsualM; TVL surpassed $1.5 billion; introduced staking yields of up to 18,000% APY.

Hashnote( not issued ):

• Project Overview: Institutional cryptocurrency management solution, providing innovative yield enhancement products.
• Latest development: Launched Bitcoin dual staking model in collaboration with CoreDAO; CEO shares new strategy with high attention.

Spectra(SPECTRA):

• Project Introduction: Future Yield Rate Tokenization Protocol
• Latest developments: New governance contract launched on the Base mainnet; Gauges page introduced; APW emission adjustments completed.

Overall performance of the track

• Stablecoin market capitalization: USDT decreased slightly by 0.27%, while USDC increased by 1.91%, indicating a continuous influx of funds into the US market.
• Increased liquidity: The risk-free interest rate in traditional markets has decreased, and the arbitrage rates of on-chain DeFi projects have increased, making a return to DeFi a good choice.
• Funding situation: Defi TVL decreased slightly by 0.37% to $52.7 billion, mainly affected by the holidays in Western markets.

In-depth Analysis

Upward Driving Force:

• Market environment: Recent declines have led to a decrease in the base interest rate.
• Interest Rate: The base lending rate has been raised, reflecting the market's expectations for pricing of funds.
• Earnings side: The yield of stablecoin earning projects has expanded, attracting user participation.

Potential risks:

• The market focuses on returns and leverage, ignoring the risk of decline.
• Holiday liquidity sharply decreased, lack of buying pressure led to a price drop.
• The risk of liquidation for long contracts is increasing, which may trigger a chain liquidation.

Performance in Other Tracks

public chain

Top 5 public chains by TVL growth in the past week:

| Project Name | Weekly Increase | TVL( Million USD) | |---------|-----------|---------------| | Stacks | 16.95% | 130.62 | | BOB | 12.81% | 232.55 | | Taiko | 4.22% | 413.49 | | Cardano | 2.94% | 503.44 | | Sei | 1.23% | 224.31 |

Stacks: Completed the first phase deposit limit for sBTC; 35% sBTC generates returns in the Zest Protocol; launched community reward program.

BOB: Released the BitVM Bridge prototype; Collaborated with Lombard Finance for deployment; Launched DeFi incentive programs.

Taiko: Launching the Trailblazers Season 3 plan; the number of ecological projects increases to 130; holding the first community meetup.

Cardano: Explanation of the advantages of the slashing mechanism; Launch of web application development tools; Deepening cooperation with Ledger

Sei: Released "Giga" technology breakthrough; launched EVM Wrapped feature; held festival activities and achieved multiple collaborations.

Overview of the Rise Ranking

The top 5 tokens with the largest gains in the market over the past week ( excluding trading volume small/meme coins ):

| Token | Project Name | Weekly Change | Circulating Market Cap | Circulation Rate | |------|---------|-----------|----------|--------| | ZEN | Horizen | 124.91% | $556,570,852 | 99.99% | | MOCA | Moca Network | 108.87% | $557,280,321 | 17.41% | | PHA | Phala Network | 105.84% | $216,306,693 | 77.14% | | AGLD | Adventure Gold | 73.77% | $170,111,563 | 100.00% | | MOVE | Movement | 66.81% | $2,581,550,729 | 22.52% |

ZEN: Deploy Horizen 2.0 Devnet; Launch optimized ZK solution; Collaborate with Automata Network; Complete final halving

MOCA: Integration with SK Planet app brings user growth; conduct Christmas marketing activities; focus on user safety education.

PHA: Launch of Phala 2.0; Collaboration with NVIDIA to test TEE efficiency; Announcement of Khala chain migration decision; TEE-as-a-Service is widely adopted.

AGLD: Launching Christmas marketing activities; collaborating with BladeGamesHQ to explore the integration of AI technology.

MOVE: Launch multiple innovative products; optimize performance; expand DeFi scenarios

Meme Token Price Increase Ranking

| Token | Project Name | Weekly Growth Rate | Circulating Market Cap | Associated Blockchain | |------|---------|-----------|----------|---------| | LUNA | Luna by Virtuals | 60.21% | $116,514,426 | Base | | KOMA | Koma Inu | 37.49% | $108,799,371 | BSC | | AIXBT | aixbt by Virtuals | 30.37% | $360,123,237 | BSC | | SPX | SPX6900 | 21.45% | $749,449,535 | Ethereum | | TURBO | Turbo | 20.47% | $745,975,419 | Ethereum |

This week, Meme projects have been significantly affected by the market decline, with participation and capital inflow noticeably decreasing.

social media hot topics

This week, the most frequently appearing topic is L1s, with the following tokens listed: (12.21-12.27).

| Token | Market Cap ( billion ) | FDV ( billion ) | Circulation Rate | Weekly Change Rate | |------|---------|---------|--------|----------| | AVAX | 154.4861 | 168.9362 | 91.45% | -11.12% | | VET | 38.2666 | 40.6292 | 94.18% | -6.43% | | FTM | 24.8524 | 28.1444 | 88.31% | -22.19% | | INJ | 20.7291 | 21.2111 | 97.72% | -11.37% | | SUI | 123.8966 | 423.1935 | 29.27% | -5.43% | | BNB | 1005.2996 | 1005.2996 | 100.00% | -0.95% | | ALGO | 29.3092 | 29.3092 | 100.00% | -4.68% | | XTZ | 13.6963 | 13.6963 | 100.00% | 3.19% | | ATOM | 25.4667 | 25.4825 | 99.99% | -11.96% | | CRO | 40.9762 | 45.2396 | 90.57% | -14.81% |

The most关注ed project on social media this week is the L1s project. During the holiday, market liquidity has declined, and there has been a general downturn, with public chains experiencing a smaller drop. Aside from BTC and ETH, investors are increasingly directing funds towards various public chains, anticipating that public chains may rebound first.

Overall Overview of Market Themes

| Track | Weekly Return Rate | Monthly Return Rate | Quarterly Return Rate | |------|---------|---------|----------| | SocialFi | 9.98% | -5.97% | -2.07% | | Cefi | 6.76% | 18.78% | 28.59% | | AI | 2.06% | -3.11% | 0.73% | | Gamefi | 1.39% | -7.31% | 13.38% | | NFT | 1.14% | 0.22% | 37.57% | | Meme | 0.93% | -16.59% | 68.41% | | Depin | 0.37% | -2.04% | 12.41% | | Defi | -0.47% | 24.24% | 60.95% | | Layer1 | -0.68% | -1.03% | 25.79% | | PayFi | -1.96% | 32.39% | 182.78% | | Layer2 | -2.37% | -11.31% | 7.18% | | RWA | -8.82% | 7.34% | 55.92% |

In terms of weekly return rates, SocialFi performed the best, while RWA performed the worst.

SocialFi: The main TON rises against the trend by 6.3%, collaborating with GMX to promote high-frequency DeFi trading.

RWA: The main projects OM, ONDO, and MKR have experienced significant declines, resulting in poor overall performance.

Next Week's Major Crypto Events Preview

• December 30: European Securities and Markets Authority publishes MiCA cryptocurrency regulation implementation
• January 2: Initial Jobless Claims in the U.S. for the week
• January 3: FTX Chapter 11 reorganization plan begins to take effect