Market sentiment is extremely greedy. The total Lock-up Position in DeFi has surged by 13.67%. The AI Agent project has ignited a new hotspot.

Market Overview

Main Market Trends

Market Sentiment and Trends: The market sentiment index has risen to 91%, entering the extreme greed zone. BTC briefly broke through $100,000 on Thursday before pulling back, but overall market resilience remains strong. ETH is performing strongly, driving the entire cryptocurrency market upward, indicating continued optimism towards mainstream coins.

Capital Flow Analysis: This week, the market capitalization of stablecoins continued to grow, with USDT increasing by 1.74% to $141 billion and USDC rising by 2.03% to $40.2 billion, indicating a continuous inflow of new funds into the crypto market. On-chain data shows that large transfers are active, and there are clear signs of institutional capital entering the market. The OTC premium is within a reasonable range, indicating a healthy supply and demand for market funds.

DeFi Performance: The total locked value of DeFi (TVL) increased from $46.8 billion to $53.2 billion, a growth of 13.67%. Liquidity staking projects performed the best, primarily benefiting from the rise in underlying asset prices and an increase in staking yields. The activity of lending protocols has significantly increased, reflecting a rise in leverage demand. DEX trading volume continues to rise, enhancing market activity.

Meme Coin Market: The performance of the Meme coin sector has been sluggish this week, with a weekly return rate of only 11.94%. The number of new project launches has decreased, leading to reduced investor interest. Funds are starting to shift towards projects with practical applications and fundamentals. The level of discussion on social media has declined, indicating a decrease in investors' risk appetite.

Hot Attention: Layer 1 projects have received the highest social media attention, with the weekly return rate of the PayFi track reaching 40.04%. AI Agent projects are starting to gain a new round of market attention, especially for projects on the Solana, TON, and Base chains. High-yield staking products in DeFi continue to attract attention. The trading activity in the NFT market has seen a rebound, but overall valuations are still searching for a bottom.

Investment Advice: It is recommended that investors maintain a cautiously optimistic attitude, manage risks well, and set reasonable stop losses. Focus on allocating resources to liquid staking and AI Agent sectors, seizing opportunities from capital rotation. Pay attention to the impact of important events, including next week's Microsoft Bitcoin investment proposal, US CPI data, and the European Central Bank interest rate decision. Maintain sufficient liquidity to respond to potential market fluctuations and adopt a gradual accumulation strategy to avoid chasing highs.

Market Sentiment Index Analysis

• The Market Sentiment Index has risen to 91%, a significant increase from last week's 83%, indicating that market sentiment is in a state of extreme greed.
• Altcoins have largely followed the overall market this week, showing an upward trend with fluctuations. ETH has performed strongly, driving a general rise in Altcoins.
• The market generally expects a rotation of funds to occur next, holding an optimistic view on the future trends of Altcoins.
• The BTC price briefly broke through $100,000 on Thursday before retreating. Market sentiment is extremely greedy, and investors need to raise their risk awareness.

Overview of the overall market trend ###

• The cryptocurrency market showed a volatile upward trend this week, with the sentiment index still in the greed phase.
• DeFi-related projects have performed outstandingly, indicating that the market continues to focus on projects that enhance fundamental returns.
• The AI Agent project is gradually gaining market attention, and there may be investment opportunities in the next half month.
• The meme sector continues to perform poorly this week, failing to gain more attention from the market.
• Various public chain projects generally rose under the impetus of ETH's increase.

Hot Track

Tron Ecosystem

This week, the price of TRX tokens has surged significantly, bringing high market enthusiasm to Tron. With continuous capital inflow, Tron, as the main trading chain for USDT, has also seen a substantial increase in on-chain activities this week.

On-chain data of Tron

• TVL: Increased from 7.97B last week to 9.32B, a growth of 16.93%, ranking first among major public chains.
• Active accounts: reached 3.6725 million, an increase of 18.06% compared to last week, maintaining rapid growth.
• USDT weekly trading volume: reached 131.4 billion USD, an increase of 16.23% compared to last week, indicating a continuous increase in on-chain trading volume.
• DeFi project TVL increase: Justlend and SUN project TVL growth rates reached 55.34% and 39.49%, respectively.

Based on the above data, it can be seen that the Tron chain is maintaining rapid development. The TRX price has surged, the value of the underlying assets has increased, and its special status as the main trading chain for USDT has attracted a large number of users to participate, driving the overall development of the Tron ecosystem.

AI Agent

Since the AI concept entered the Crypto market at the end of last year, the AI track has been a hot topic. After the launch of the first AI Agent token GOAT in October this year, AI Agent Meme quickly became the new focus of the market. Subsequently, projects like ACT emerged, and investors turned their attention to AI Agent launch platforms such as Virtuals Protocol and vvaifu.fun. The AI Agent track is gradually forming three sub-tracks: Meme coins, issuance platforms, and underlying infrastructure.

Currently, the AI Agent project is primarily developing on the Solana, TON, and Base chains. Solana mainly focuses on vvaifu.fun, Base primarily involves the Virtuals Protocol and AI Agent Layer, while TON mainly features Clanker. In the past half month, the prices of VVAIFU, VIRTUAL, and CLANKER have rapidly increased, forming a certain market capitalization scale.

These projects have not yet been launched on major exchanges, but considering that ACT, GOAT, and ANON have already been launched on platforms like Binance, the AI Agent launch platform project may also go live on major exchanges in the future. It is still in the early stages and worth paying attention to.

OpenAI has recently showcased new products for 12 consecutive days, sparking market speculation about the AI sector. If the market does not experience significant fluctuations, the AI sector may see a good increase in the next 10 days. It is advisable to pay more attention to AI-related projects in the short term, as investment opportunities may arise.

Traditional AI Projects in the Crypto Market

| Token | Project Name | Weekly Change | Circulating Market Cap | |-------|-----------------|--------|---------------| | TAO | Bittensor | 22.46% | $5,319,989,872 | | FET | Fetch.ai | 25.89% | $5,288,426,405 | | RENDER| Render | 19.65% | $5,227,613,836 | | WLD | Worldcoin | 43.41% | $2,986,557,188 | | AKT | Akash Network | 6.87% | $1,121,411,518 | | ARKM | Arkham | 15.36% | $830,921,472 | | GLM | Golem | 12.47% | $523,951,936 | | AGIX | SingularityNET | 20.58% | $296,226,702 | | TRAC | OriginTrail | 8.01% | $453,330,796 |

DeFi track

TVL Growth Ranking

The top 5 projects by TVL growth in the past week( do not include smaller projects, with a standard of over 30 million USD)

| Project Name | Weekly Growth Rate | TVL(million) | |-------------|----------|--------------| | BounceBit | 134.26% | 450.13 | | Astherus | 102.65% | 132.13 | | StakeDAO | 77.17% | 176.42 | | Flexa | 74.51% | 338.32 | | SaucerSwap | 68.16% | 136.37 |

BounceBit(BB):(Recommendation Index:⭐️⭐️⭐️⭐️)

• Project Introduction: A re-staking infrastructure layer on the Bitcoin ecosystem. In deep collaboration with Binance, it structures high-yield CeDeFi components; building BounceBit Chain to provide use cases for Restaking.
• Latest developments: This week, the staking rates for various tokens have increased, with USDT's 30-day annualized rate reaching 35.45%, BTC at 39.85%, BNB at 25.91%, and ETH at 30.57%, attracting a large number of users to participate in staking.

Astherus( Unissued Tokens ): ( Recommendation Index: ⭐️⭐️⭐️ )

• Project Introduction: A liquidity hub for staked assets, supporting LST and LRT. User assets can earn staking APR, used for trading, stablecoin yield, and other strategies.
• Latest developments: Collaborating with Movement Labs to introduce the Movement Network chain; received investment from Binance Labs; hosting events, where staking USDF, asUSDF, and asBTC can earn 5x AU points.

Stake DAO(SDT):(Recommendation Index:⭐️⭐️⭐️)

• Project Introduction: A decentralized asset management platform that provides simplified access to yield strategies, staking, trading, and indicators.
• Latest developments: Product yield has significantly increased, with the annualized APY of multiple tokens in sdToken reaching over 20%-100%, and market strategies can reach up to 152%, attracting a large number of users to participate.

Flexa( Unissued Coins ): ( Recommendation Index: ⭐️⭐️)

• Project Introduction: Committed to promoting the application of cryptocurrency in merchant settlement systems, enabling users to use digital assets in the real world.
• Latest Development: Progress has been made in offline development, allowing users to pay with the app at thousands of stores in the United States. Through the Zashi-Flexa integration, users can use ZEC for everyday purchases.

SaucerSwap(SAUCE):( Recommendation Index: ⭐️⭐️⭐️)

• Project Introduction: A DEX based on the Hedera chain, supporting conventional trading functions, and launching SAUCE Pro premium services.
• Latest developments: HBAR price increase drives activity on the Hedera chain, with SaucerSwap attracting a large number of users as the largest DEX. Conducting SAUCE buybacks, raising staking APY to 9.9%. Launching Epoch 28 activities to reward liquidity providers.

In summary, the projects with significant TVL growth this week are primarily concentrated in the liquid staking track (LRT).

Overall Performance of the Track

• Stablecoin market cap steadily grows: USDT increases by 1.74% to $141 billion, USDC increases by 2.03% to $40.2 billion, indicating continuous capital inflow into the market.

• Liquidity gradually increases: The risk-free arbitrage rates in traditional markets decline, while the arbitrage rates of on-chain DeFi projects increase due to the rise in asset values, making a return to DeFi a better choice.

Funding Situation: The TVL of DeFi projects increased from $46.8 billion to $53.2 billion, a growth of 13.67%, maintaining a continuous rise for nearly two months, proving that funds are continuously flowing into DeFi projects.

In-depth Analysis

Driving Forces for Increase:

BTC and ETH have both maintained strong growth this week, with investors becoming more optimistic about their future trends. The continuous strengthening of ETH prices has increased the APY of various DeFi projects, attracting investors to actively participate while holding the original assets and increasing returns.

Growth Leader:

The performance of liquid staking projects is outstanding. The prices of underlying assets from major public chains have risen, boosting the confidence of token holders and encouraging participation in other investment activities to increase returns. Liquid staking projects have become key, enhancing yields by releasing liquidity without changing the number of underlying assets held. As the price of ETH rises, it is expected that the prices of various public chains will also increase, driving growth in corresponding liquid staking projects.

Investors are advised to pay more attention to the liquidity staking track projects of various public chains in the near term.

Other track performance

public chain

The top 5 public chains in TVL growth over the past week ( do not include smaller public chains in TVL )

| Project Name | Weekly Increase | TVL(million) | |----------|---------|--------------| | Hedera | 74.42% | 176.93 | | Zircuit | 70.79% | 329.84 | | Filecoin | 54.12% | 120.54 | | EOS | 47.66% | 259.38 | | Kaia | 41.28% | 117.16 |

Hedera: HBAR surged due to positive factors such as ETF applications and is considered severely undervalued. Hedera focuses on on-chain development, promoting AI, payments, and IoT growth. The ecosystem's largest project, SaucerSwap, has seen rapid growth in TVL, driving an overall increase in TVL.

Zircuit: ZRC listed on Coinone exchange, supported by Crypto.com. Collaborating with Elara to expand its use, supported by Kelp DAO to set up a gain vault, attracting $1 million in ETH on the day of launch.

Filecoin: FIL surged 44.36% this week, driving user participation in on-chain staking. The two largest on-chain LST and LRT projects, GLIF and Parasail, experienced growth rates of 36.75% and 40.78% respectively, contributing to an overall increase in TVL.

EOS: Participating in the creation of exSat Network for BTC-L2 to attract traffic. Starting to emphasize on-chain ecological construction, focusing on Gamefi, AI, and Depin projects. EOS surged 68.7% this week, leading to an increase in on-chain activities.

Kaia: launched