Crypto Market Weekly Report: Decentralized Finance and AI Sectors Lead Market Recovery Trends

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 noticeable improvement. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still entering the market. The market recovery is mainly driven by two factors: first, the U.S. CPI data meets expectations, and second, there is an optimistic outlook on policy easing. The overall performance of small-cap tokens is better than that of large-cap tokens, especially the significant price increases of DeFi and AI-related tokens, indicating a trend of funds beginning to shift from Bitcoin to small-cap tokens.

The total locked value in the DeFi sector slightly increased to $53.5 billion, with a month-on-month growth of about 1%. It is noteworthy that DeFAI, as a combination product of Decentralized Finance and AI, saw its market value rise from $600 million to $3.2 billion within a week, demonstrating the market's strong enthusiasm for innovative DeFi applications.

The AI Agent sector continues to maintain a strong development trend, shifting from simple AI token trading to deeper application scenario development. The rise of DeFAI marks a new stage in the application of AI in the crypto market, mainly reflected in four directions: user-friendly AI interfaces, portfolio management, infrastructure construction, and market analysis and forecasting. The development path of leading projects shows that the market is transitioning from the proof of concept stage to the practical application stage.

The Meme coin sector has performed relatively flat this week, with market attention clearly retreating from the high points of the fourth quarter of last year. This indicates that investors' risk appetite is shifting from purely speculative Meme tokens to projects with practical application scenarios. However, as related topics heat up, the market expectations may see a new wave of Meme coin speculation centered around political themes.

Layer 1 public chains present a stable upward trend overall, but the increase is not as significant as that of the 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 focus on AI computing capabilities.

Hot Tracks

Decentralized Finance AI

This week, DeFAI has become the market focus, with its market capitalization rising from $600 million to $3.2 billion, achieving more than a fourfold growth within a week. The DeFAI sector 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. Currently, DeFAI is still in its early stages, with most projects focused on abstract/user-friendly AI and market analysis and forecasting. Representative projects include Griffain, Anon, and AXIBT.

Decentralized Finance赛道

In the past week, the projects with the most rapid growth in TVL were mainly concentrated in the machine gun pool projects. Projects like Folks Finance, Beets, AlphaFi, Echelon Market, and Astherus have made significant progress in technological innovation, ecological cooperation, and user incentives. Overall, the TVL of DeFi projects rose from $53 billion last week to $53.5 billion, an increase of 0.94%, ending the negative growth situation from the previous week.

public chain track

Sonic, Hyperliquid, Algorand, BSquared, and Mode have all made significant progress this week. These public chains have shown highlights in areas such as DeFi applications, cross-chain functionality, technology upgrades, and ecosystem development.

Market Highlights

The top five tokens with the highest gains this week are mainly concentrated in AI and Decentralized Finance related projects, including ANON, BUZZ, CGPT, ARC, and GRIFFAIN. These projects have made significant breakthroughs in technological innovation, ecosystem expansion, and functional updates.

In terms of social media popularity, Layer 1 projects receive the most attention. This is mainly due to the market rebound driving the yield increase of DeFi projects on various public chains, attracting more users to participate.

Future Outlook

In the short term, the market will be significantly affected by changes in the political situation in the United States. Market volatility is expected to increase. The DeFi sector may benefit as investors seek to increase their coin-holding returns. The AI and DeFAI sectors are expected to continue to attract market attention and are likely to become the next hot tracks.

Investors should closely monitor policy changes, carefully select projects with practical application scenarios, and pay attention to risk control. At the same time, the development of emerging fields like DeFi is worth ongoing attention, but one must also be wary of the risks brought by pure concept speculation.