Crypto Assets Market Weekly Report

This week, the crypto assets market has shown a wide range of fluctuations, with the market sentiment index dropping from 35% last week to 10%, entering the extreme fear zone. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still entering the market. The poor market sentiment is mainly affected by the lack of timely introduction of crypto assets related policies after Trump's inauguration. Although relevant legislation was issued on Thursday, it failed to significantly boost market sentiment, resulting in most tokens experiencing declines greater than the overall market.

DeFi Ecosystem Development

The DeFi sector performed outstandingly, with TVL increasing from 53.5 billion USD to 53.8 billion USD, a growth rate of 0.56%, showing positive growth for two consecutive weeks. This is mainly attributed to the rise in the prices of underlying assets and project incentive measures, with on-chain APY generally increasing. Projects like Sumer.money and Meteora have shown impressive performance in terms of TVL, indicating that investors are beginning to refocus on the foundational yield in the DeFi space.

Development of the AI Track

Affected by Trump's announcement of a $500 billion AI infrastructure plan, the total market value of the AI sector reached $41.9 billion, but subsequently experienced a pullback due to sluggish market sentiment. In terms of projects, Virtuals Protocol, Swarms, and others continue to promote technological innovation, focusing on the layout of autonomous trading Agents, multi-Agent collaboration frameworks, and infrastructure construction. At the same time, the application of TEE technology and the emerging narrative of the Agent economic system are gradually gaining attention.

Meme coin trends

This week, the focus of the Meme coin market is concentrated on the official tokens TRUMP and MELANIA issued by Trump and Melania on Solana, leading to a significant influx of funds and attention towards these two tokens, resulting in a sharp decline in other Meme coins, illustrating the high speculative nature and trend-following characteristics of the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out the most, especially Solana, which benefited from the issuance of TRUMP tokens, with the on-chain stablecoin supply reaching a historic high of $10.138 billion. Meanwhile, emerging public chains such as Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields, showcasing strong potential for ecological development.

Future Market Outlook

Looking ahead to next week, the market will focus on important events such as the Federal Reserve FOMC meeting, the PCE price index, and tech stock earnings reports. The market is expected to maintain a volatile trend, but investors are generally optimistic about the opportunities brought by the gradual clarification of Crypto Assets policies after February. DeFi and AI sectors are likely to continue benefiting from fundamental improvements and policy support, while competition in the public chain ecosystem will further intensify.