Market Weekly Report

Market Overview

Main Market Trends

Market Sentiment and Trends: The market sentiment index has risen to 91%, entering the extreme greed zone. Although BTC briefly broke through $100,000 on Thursday before retracing, the overall market resilience remains strong. ETH's strong performance has driven a broad rally in the cryptocurrency market, indicating continued optimism towards mainstream cryptocurrencies.

Capital Flow Analysis: This week, the market value of stablecoins has steadily increased, with USDT rising by 1.74% to $141 billion and USDC increasing by 2.03% to $40.2 billion, indicating a continuous inflow of new funds into the cryptocurrency market. On-chain data shows active large transfers, with clear signs of institutional funds entering the market. The over-the-counter premium remains within a reasonable range, indicating a healthy supply and demand for market funds.

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

Meme Coin Market: The Meme coin sector underperformed this week, with a weekly return rate of only 11.94%. The issuance of new projects has decreased, and investor interest has waned. Funds are starting to shift towards projects with practical application scenarios and solid fundamentals. Social media discussion heat has declined, and investors' risk appetite has diminished.

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

Hot Track

Tron ecosystem

With the surge in TRX token prices, the Tron ecosystem's popularity is rising. As the main trading chain for USDT, activities on the Tron chain have significantly increased.

Data on the Tron blockchain:

• TVL: Increased from 7.97B to 9.32B, a rise of 16.93%, with active capital inflow.
• Active accounts: 3.6725 million, an increase of 18.06% compared to last week, high on-chain activity
• USDT weekly trading volume: 131.4 billion USD, an increase of 16.23% compared to last week, on-chain trading volume increased.
• DeFi project TVL growth: Justlend and SUN increased by 55.34% and 39.49%, respectively.

The Tron chain continues to develop rapidly, with the rise in TRX prices and USDT's dominant trading chain position driving ecological prosperity.

AI Agent

The AI Agent track has formed three sub-tracks: AI Agent Meme coins, AI Agent issuance platforms, and AI Agent underlying infrastructure. It mainly develops on the Solana, TON, and Base chains.

• Main projects on the Solana chain: vvaifu.fun
• Base chain main projects: Virtuals Protocol, AI Agent Layer
• Main project of the TON chain: Clanker

The prices of VVAIFU, VIRTUAL, and CLANKER coins have risen rapidly, forming a certain market capitalization scale. Currently, they have not been listed on major exchanges and are still in the early stages.

OpenAI has launched a 12-day new product release live stream this week, sparking market speculation about the AI sector. As a leading company in the AI industry, OpenAI's movements will impact the development of AI projects in the Crypto market. In the short term, the AI sector is expected to see a rise in opportunities.

DeFi track

Top 50 TVL Growth Rankings excluding small projects (:

1. BounceBit: Increase of 134.26%, TVL 450 million USD
2. Astherus: Increase of 102.65%, TVL 132 million USD
3. StakeDAO: Increase of 77.17%, TVL $176 million
4. Flexa: Increase of 74.51%, TVL $338 million
5. SaucerSwap: Increase of 68.16%, TVL $136 million

Overall Track Performance:

• Stablecoin market capitalization continues to grow: USDT up 1.74%, USDC up 2.03%
• Liquidity gradually increases: On-chain DeFi project arbitrage rates rise, funds flow back to DeFi.
• The total TVL of DeFi increased from $46.8 billion to $53.2 billion, a growth of 13.67%.

Rising Driving Force:

The strong rise in ETH prices has driven up the APY of DeFi projects, with investors actively participating to increase their returns. Liquidity staking projects have performed prominently, and it is expected that liquidity staking projects across various public chains will continue to grow.

![Frontier Lab Crypto Market Weekly Report｜W49])https://img-cdn.gateio.im/webp-social/moments-74e69f7e1ed410124e4a97733c85e936.webp(

Other Track Performance

) public chain

Top 50 TVL Growth ### excluding small public chains:

1. Hedera: up 74.42%, TVL 177 million USD
2. Zircuit: increase of 70.79%, TVL 330 million USD
3. Filecoin: increase of 54.12%, TVL 121 million USD
4. EOS: Increase of 47.66%, TVL 259 million USD
5. Kaia: Increase of 41.28%, TVL 117 million USD

( Gainers List

Weekly increase top 50 excluding small coins and meme coins ):

1. HYPE ### Hyperliquid (: Increase of 324.49%, Market Cap 4.52 billion USD
2. OL )Open loot(: Increase of 304.84%, Market Cap $123 million
3. CVX )Convex Finance(: Increase of 127.01%, Market Cap 548 million USD
4. IOTA: up 125.08%, market cap $1.71 billion
5. CRV )Curve(: Increase of 124.95%, Market Cap 1.32 billion USD

) social media hotspots

Layer 1 blockchain projects are receiving the highest attention and generally showing an upward trend. Various public chain ecosystem DeFi projects remain hot, with both TVL and trading volume increasing.

( Market Theme Overview

In terms of weekly return rates, the PayFi sector performed the best at 40.04%, while the SocialFi sector performed the worst at 19.71%.

![Frontier Lab Crypto Market Weekly Report｜W49])https://img-cdn.gateio.im/webp-social/moments-78e344021b77598d1f827a0175bfc1e8.webp###

Outlook for Next Week

• Microsoft's shareholder meeting will discuss the Bitcoin investment proposal and the US CPI data, which will affect short-term trends.
• The DeFi sector's liquid staking, gun pools, and DEX tracks may continue to perform well.
• The AI Agent track is in its early stage, and investors should pay attention to token launch platform projects.

It is expected that the market will be greatly influenced by macroeconomic data and Microsoft's vote next week, possibly showing a volatile trend. Investors should maintain a cautious attitude.