Market Overview

This week, the cryptocurrency 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 notable improvement. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still entering the market. The market rebound is mainly driven by two factors: first, the US CPI data meets expectations, and second, there is an optimistic expectation that Trump may relax cryptocurrency regulations if he is elected. Small-cap tokens have overall outperformed the market, especially DeFi and AI-related tokens, which have seen significant increases, showing a trend of funds beginning to shift from Bitcoin to small-cap tokens.

The total locked value in the DeFi sector has seen a slight increase to $53.5 billion, with a week-on-week growth of about 1%. It is worth noting that DeFAI, as a product combining DeFi and AI, has seen its market capitalization surge 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 the strong development trend that began at the end of last year, shifting from simple AI token trading to deeper application scenario development. The rise of DeFAI marks the entry of AI applications in the crypto space into the 2.0 phase, mainly reflected in four directions: user-friendly AI interfaces, portfolio management, infrastructure construction, and market analysis and forecasting. The development paths of leading projects like Griffain, Anon, and AXIBT indicate that the market is transitioning from the proof-of-concept stage to the practical application stage.

The Meme coin sector has shown relatively flat performance this week, with market attention significantly retreating from last year's fourth quarter peak. This indicates that investors' risk appetite is shifting from purely speculative Meme tokens to projects with practical application scenarios. However, as discussions related to Trump heat up, the market may anticipate a new wave of Meme coin speculation centered around political themes.

Layer 1 public chains are showing a stable upward trend overall, but the growth rate is not as high as that of the DeFi and AI sectors. Among mainstream public chains, those with advantages in AI and DeFi ecosystems are performing better, reflecting that the value of underlying public chains is increasingly dependent on the prosperity of their upper-layer application ecosystems. It is noteworthy that public chains supporting AI computing have begun to attract market attention, indicating that a new round of competition among public chains may revolve around AI computing capabilities.

Market Outlook

The short-term market will be influenced by Trump's inauguration, with increased volatility expected. Investors are advised to focus on DeFi projects that have real application scenarios, avoiding the chase of purely conceptual speculation. In terms of DeFi investments, attention can be given to the yield opportunities of machine gun pool projects, but strict control of leverage risk is necessary. Regarding timing, it is suggested to observe the policy changes brought by Trump's inauguration in the short term, avoiding blind chasing of highs, and ensuring the safety of the investment portfolio.

Hot Tracks

DeFAI

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 increase within a week. The DeFAI track can be divided into four categories: 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 concentrated in the fields of abstract AI and market analysis forecasting, with representative projects including Griffain, Anon, and AXIBT. Although DeFAI has experienced rapid growth and gained substantial attention recently, most features have yet to be realized, and investors should be wary of market speculation risks while paying attention to the actual implementation in various fields.

DeFi Track

This week's projects with rapid TVL growth are mainly concentrated in the machine gun pool project. The TVL of DeFi projects increased from $53 billion to $53.5 billion, a growth rate of 0.94%. The overall market is on an upward trend, especially after the release of the US CPI, which led to a general rise, attracting funds to re-participate in DeFi projects. The market is generally optimistic about Trump's presidency, driving funds into the DeFi industry.

Public Chain Track

Sonic has launched a DeFi application that supports multiple cryptocurrencies, innovatively introducing real-time deposit functionality. Hyperliquid has successfully launched the SOLV token, achieving "Day 1 triple-end synchronization." Algorand has completed an important upgrade to version 4.0, releasing the NodeKit tool to simplify node operation. BSquared is actively promoting the transformation of Bitcoin into an AI innovation hub. Mode is showing strong development momentum in the DeFAI field, launching the Season 4 "Agentic Economy" program.

Social Media Hotspots

This week, the most关注度 on social media is Layer 1 projects. The market overall shows a wide fluctuation trend, rebounding after the CPI data was released. Various sector projects have seen good increases, and the APY of on-chain DeFi projects has risen, attracting more users to participate, driving market attention and funds toward public chain projects.

Next Week Outlook

Key events next week include Trump's inauguration as President of the United States, and the resignation of SEC Chairman Gary Gensler and CFTC Chairman Rostin Behnam. Trump's inaugural speech may mention cryptocurrency policy, which will have a significant impact on market sentiment. Market volatility is expected to increase next week.

In the DeFi sector, despite the poor market sentiment, investors generally expect a widespread increase in the market in the first quarter and are inclined to participate in machine gun pool projects to enhance returns. In the AI sector, the AI Agent track continues to attract attention, with a market size reaching $15.9 billion, growing by 16.65% compared to last week. Investors are starting to pay attention to DeFAI, as the combination of AI and DeFi is expected to create a new and competitive track.