Market Overview

Overview of Major Market Trends

Market Sentiment and Trends: The market sentiment index has risen to 91%, indicating extreme greed. Although BTC briefly broke through $100,000 on Thursday before pulling back, the overall market resilience remains strong. ETH has shown strong performance, driving the overall rise in the cryptocurrency market, reflecting continued optimism for major coins.

Capital Flow Analysis: This week, the market capitalization 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 crypto market. On-chain data shows that large transfers are active, and there are clear signs of institutional capital entering the market. The over-the-counter premium remains within a reasonable range, reflecting a healthy supply and demand situation for market funds.

DeFi Sector Performance: The total locked value of DeFi ( TVL ) has significantly increased from $46.8 billion to $53.2 billion, a growth of 13.67%. The liquidity staking projects have performed the best, mainly benefiting from the rise in underlying asset prices and increased staking yields. The activity 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 performed relatively sluggishly this week, with a weekly return rate of only 11.94%. The number of new project launches has decreased, and investor interest has significantly diminished. Funds are starting to shift towards projects with practical application scenarios and fundamentals. Social media discussion heat has declined, indicating a reduced risk appetite among investors.

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

Investment Advice: Investors are advised to maintain a cautiously optimistic attitude and focus on the following aspects: first, implement effective risk management by setting reasonable stop-loss levels to avoid excessive leverage; second, prioritize investment in liquid staking and AI Agent sectors to seize capital rotation opportunities; third, pay attention to the impact of significant events, including next week's Microsoft Bitcoin investment proposal (12 December 11 ), U.S. CPI data, and European Central Bank interest rate decisions; fourth, maintain sufficient liquidity to cope with potential market fluctuations and adopt a phased investment 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 an extreme greed phase. Altcoins this week have generally mirrored the overall market, showing a trend of oscillating upward movement. ETH has performed strongly, driving a rally in Altcoins. Prices of various public chain projects have increased, propelling projects within the ecosystem. The market generally anticipates a rotation of funds in the near future, leading to a more optimistic outlook for the future trends of Altcoins.

The price of BTC briefly broke through $100,000 on Thursday. Although it subsequently fell, market sentiment remains in a state of extreme greed. A certain degree of correction is expected in the future, and investors need to enhance their risk awareness.

Overview of Overall Market Trends

• The cryptocurrency market has been in a volatile upward trend this week, with the sentiment index still in the greed phase.
• DeFi-related projects have performed outstandingly, demonstrating the market's continued focus on enhancing baseline returns.
• The AI Agent project is gradually gaining attention, and investment opportunities may arise within the next two weeks.
• The meme sector continues to perform sluggishly this week, failing to gain more market attention.
• Various public chain projects have generally risen due to the increase of ETH.

Hot Tracks

Tron ecosystem

This week, the price of TRX 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.

Data on the Tron blockchain

• TVL: Increased from 7.97B last week to 9.32B, a growth of 16.93%, ranking first among major public chains.
• Active accounts: 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 that on-chain trading volume continues to grow.
• DeFi project TVL increment: Justlend and SUN growth rates are 55.34% and 39.49%, respectively.

Based on the above data, the Tron chain continues to develop rapidly. The price of TRX has risen significantly, increasing the value of underlying assets; as the main trading chain for USDT, it attracts a large number of users to participate, promoting the development of the entire ecosystem.

AI Agent

Since entering the crypto market at the end of last year, the AI Agent sector has been a hotspot. After the launch of the first AI Agent token GOAT in October, AI Agent Meme quickly became the focus of the market. Following GOAT, tokens like ACT emerged to lead the market. Investors later shifted their attention to AI Agent launch platforms, with projects like Virtuals Protocol and vvaifu.fun gaining popularity and developing towards underlying infrastructure. The AI Agent sector has formed three sub-sectors: Meme coins, issuance platforms, and underlying infrastructure.

Due to varying levels of support among different chains, the AI Agent project mainly develops on Solana, TON, and Base chains. Currently, there are hundreds of Meme token projects launched every day, making it difficult for investors to bet on a single project. Some investors are turning their attention to launch platforms. The main launch platform on the Solana chain is vvaifu.fun, on the Base chain it is mainly Virtuals Protocol and AI Agent Layer, and on the TON chain it is mainly Clanker. In the past two weeks, the prices of VVAIFU, VIRTUAL, and CLANKER tokens have rapidly increased, forming a certain market capitalization scale.

VVAIFU is mainly traded on Raydium and has launched on MEXC and Gate; VIRTUAL has high trading volume on Uniswap and Cake, and is listed on Gate, Bybit, and other second and third tier exchanges; CLANKER has high trading volume on Uniswap and is listed on Gate, Bitgit, and other second and third tier exchanges. Currently, none of them have launched on first-tier exchanges, but considering that projects like ACT and GOAT have already been listed on first-tier exchanges like Binance, the AI Agent launch platform project is also expected to be launched in the future. It is still in the early stages and worth paying attention to.

This Wednesday, OpenAI announced a 12-day live demonstration of new products every working day, sparking market speculation about the AI sector. As a leader in the AI industry, OpenAI's movements will influence the development of AI projects, with even greater impact in the Crypto market. For AI projects in the Crypto market, OpenAI's actions will likely rekindle market interest in the AI sector during the conference period. If there is no significant market turbulence, the AI sector could see considerable price increases over the next 10 days. Investors should focus on AI projects in the short term, as investment opportunities may arise.

Traditional AI Projects in the Crypto Market

| Token | Project Name | Weekly Increase | 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 TVL of less than $30 million), data source: Defilama

| Project Name | Last 7 Days Increase | 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: BounceBit is a restaking infrastructure layer on the Bitcoin ecosystem. In deep collaboration with Binance, it builds high-yield CeDeFi components; establishing BounceBit Chain to provide use cases for Restaking.

• Latest development: This week, the staking interest rates for various tokens have been increased, with USDT 30-day annualized rate reaching 35.45%, BTC 39.85%, BNB 25.91%, ETH 30.57%, attracting a large number of users to participate in staking.

Astherus( Token Not Issued ): ( Recommendation Index: ⭐️⭐️⭐️)

• Project Introduction: A liquidity center for staked assets, supporting liquid staking tokens (LST) and liquid re-staking tokens (LRT). Users' assets can earn staking APR, which can be used for trading and other profit strategies.

• Latest Developments: Partnered with Movement Labs to introduce the Movement Network chain; received investment from Binance Labs; hosted events, participating in staking can earn 5x AU points.

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

• Project Introduction: A decentralized asset management platform that provides simplified access to various yield strategies, staking, trading, and metrics.

• Latest developments: The yield of various products has significantly increased, with annualized APY for CRV, CAKE, and other sdTokens reaching 20.46%-102.16%. Market strategies can reach up to 152%, attracting a large number of users to participate.

Flexa( not issued ):( recommendation index:⭐️⭐️)

• Project Introduction: Promote the application of cryptocurrency in merchant settlement systems, enabling users to use digital assets in the real world.

• Latest developments: Offline growth has made progress, and users can make payments using the app in thousands of stores across the United States. Through Zashi-Flexa integration, users can use ZEC for daily purchases.

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

• Project Introduction: A decentralized exchange based on the Hedera chain, supporting regular trading functions, and launching SAUCE Pro to provide advanced features.

• Latest developments: HBAR price increase drives up Hedera chain activity; conducting SAUCE buybacks; launching Epoch 28 event rewards for liquidity providers; as the largest DEX on Hedera, it accounts for almost all trading volume.

In summary, this week's projects with rapid TVL growth are mainly concentrated in the liquid staking track (LRT).

Overall Performance of the Track

• The market value of stablecoins is steadily increasing: USDT rose by 1.74% to $141 billion, and USDC rose by 2.03% to $40.2 billion, indicating a continuous influx of funds.

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

The TVL of DeFi projects increased from 46.8 billion dollars to 53.2 billion dollars, a growth of 13.67%, significantly higher than in previous weeks, maintaining a continuous upward trend over the past two months, proving that funds are continuously flowing into DeFi projects.

In-depth Analysis

Upward Driving Force:

After a pullback, the BTC price has risen again, with ETH performing slightly better than BTC. Both maintain a strong growth momentum, and investors are more optimistic about future price trends, becoming more determined to hold. The sustained strength of ETH price has led to an increase in APY for various DeFi projects due to the rise in underlying assets, attracting investors to actively participate, while increasing returns alongside holding the original assets.

Growth Leader:

This week's TVL growth ranking shows that liquid staking projects are performing outstandingly. The prices of major public chain underlying assets have risen significantly, boosting the confidence of token holders and encouraging them to participate in other investment activities to increase returns. Liquid staking projects have become key, enhancing yield by releasing liquidity without changing the number of underlying assets held by users. This mechanism relies on the rise in the price of the underlying assets. With the price of ETH climbing, it is expected that the prices of various public chains will also rise, driving the growth of corresponding liquid staking projects. This indicates that liquid staking projects have competitive advantages and play an important role in the current and future market environment.

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

Performance in Other Tracks

public chain

The top 5 public chains by TVL increase in the past week ( do not include public chains with smaller TVL ), data source: Defilama

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