Market Overview

This week, the cryptocurrency market has shown a wide fluctuation trend, with the market sentiment index dropping 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 overall market sentiment is depressed mainly due to the impact of policies related to Trump's inauguration. Although a cryptocurrency bill was issued on Thursday and SAB-121 was repealed, it failed to significantly boost the market, causing most tokens to fall more than the overall market. Altcoins are generally underperforming against the benchmark index.

The DeFi sector has performed outstandingly, with TVL increasing to $53.8 billion, a growth rate of 0.56%, marking two consecutive weeks of positive growth. This is mainly attributed to the rise in the prices of underlying assets and project incentive points, leading to a general increase in on-chain APY. Projects like Sumer.money and Meteora have shown remarkable TVL performance, indicating that investors are refocusing on the fundamental returns of DeFi.

The total market value of the AI sector reached 41.9 billion USD, but subsequently corrected due to low market sentiment. Virtuals Protocol, Swarms, and others continue to promote technological innovation, focusing on independent trading agents, multi-agent collaboration frameworks, and infrastructure development. The application of TEE technology and the emerging narrative of the agent economic system are attracting attention.

The focus of the Meme coin market is concentrated on the TRUMP and MELANIA tokens issued on Solana by Trump and Melania, leading to a significant drop in other Meme coins, demonstrating a high degree of speculation and herd behavior.

In the public chain ecosystem, Solana and Tron stand out. Solana benefits from the issuance of the TRUMP token, with on-chain stablecoin supply reaching a new high. Emerging public chains like Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields, showing good development potential.

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 remain volatile, but investors are optimistic about the opportunities brought by clearer policies after February, with DeFi and AI sectors likely to benefit. Competition in the public chain ecosystem will intensify further.

Market Sentiment Index Analysis

The market sentiment index has dropped from 35% last week to 10%, entering the extreme fear zone.

Altcoins performed overall weaker than the benchmark index this week, with most tokens declining more than the market. This is mainly because investors are waiting for the announcement of cryptocurrency legislation and policies in Trump’s new administration. Although related legislation was issued on Thursday and SAB-121 was repealed, it failed to significantly boost market sentiment, leading to cautious investment and overall poor market sentiment. Altcoins are expected to remain in sync with the benchmark index in the short term.

Overview of Overall Market Trends

• The cryptocurrency market has been in a volatile trend this week, with the sentiment index entering the extreme fear zone.

• DeFi-related projects have performed outstandingly, indicating that the market continues to focus on increasing baseline returns.

• AI-related projects have high public sentiment, indicating that investors are actively looking for the next market breakout point.

Hot Topics

The Rise of AI: Web3 is Welcoming the Year of the AI Revolution

This week, with Trump announcing a $500 billion AI infrastructure plan for the next four years, the AI sector saw an overall rebound, but later fell back due to low market sentiment.

Continuous innovation in various projects: Virtuals Protocol updates the value accumulation mechanism, Swarms establishes an ecological fund and plans to launch new features, AI16Z expands the Near and Avalanche ecosystems, Holoworld initiates Launchpool, and AIXBT continues to hold the top position in Kaito's attention rankings. The market mainly focuses on self-trading Agents, multi-Agent collaboration frameworks, and infrastructure development, with emerging narratives such as TEE technology applications and Agent economic systems receiving attention.

It is predicted that by the end of 2025, 90% of on-chain transactions will be completed by AI agents. These intelligent agents can perform micro-payments based on real-time data, optimize liquidity pools, allocate rewards reasonably, and achieve more efficient and intelligent operations. It is foreseeable that the Crypto market is about to enter the AI era.

DeFi Track

TVL Growth Ranking

The top 5 projects by TVL growth in the market over the past week, excluding projects with a smaller TVL, with a standard of over $30 million (:

1. Sumer.money) has not issued tokens(: Recommendation Index ⭐️⭐️⭐️ Launched NFT minting activities in collaboration with multiple projects, with TVL exceeding 100M. Partnered with BeraSkool and joined the Core DAO program, revealing the suBTC optimization strategy.

2. Meteora) has not issued tokens(: Recommendation Index ⭐️⭐️⭐️ Launched the "Liquidity Ratio Slider" feature to simplify user operations. The LP Army is diversifying, attracting global users to participate. Continuously strengthening community interaction.

3. Silo Finance)SILO(: Recommendation Index ⭐️⭐️ Launch S-ETH and S-USDC markets, providing high yields. Partnered with Solv Protocol, becoming the second largest protocol of Sonic Labs.

4. Aura)AURA(: Recommended Index ⭐️⭐️ Introducing StableSurge Hook technology to effectively prevent depegging risks. Balancer v3 Boosted Pools will soon be launched, offering diversified returns. Capital efficiency is significantly improved.

5. Pell Network)PELL(: Recommendation Index ⭐️⭐️⭐️ Promote the improvement of PELL token functions and the integration of the EGLD re-staking protocol. Collaborate with multiple parties to advance Bitcoin re-staking development and prepare for IDO issuance.

This week's projects with rapid TVL growth are mainly concentrated in the Gatling Pool project.

Overall Performance of the Track

• Liquidity is gradually increasing: The APY of on-chain DeFi projects has significantly increased due to the rise in the prices of underlying assets and incentive rewards, making it attractive to investors who are optimistic about the long-term prospects of the Crypto market.

• Capital Situation: The TVL of DeFi projects increased from $53.5 billion to $53.8 billion, a growth of 0.56%, marking two consecutive weeks of positive growth. This is mainly due to the market's general optimism regarding Trump's first quarter in office, leading to an influx of funds into the DeFi sector, with rising APY attracting on-chain capital participation.

![From Trump's 500 billion infrastructure to 90% on-chain transaction intelligence, Web3 is ushering in the AI revolution year｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-ba11a4866050ed37330b012dd0389660.webp(

Performance in Other Tracks

Public Chain

The top 5 public chains by TVL growth in the past week ) excluding public chains with smaller TVL (:

1. Sonic: Integrating Chainlink's cross-chain functionality, $250,000 DeFAI hackathon boosts AI Agent development. $S listed on OKX and Binance.

2. Solana: The Trump couple parachutes in to stir up the Meme craze, with on-chain stablecoin supply breaking 100 billion, setting a new record. Collaborating with E Money Network to expand payment scenarios.

3. Core: Collaborate with SumerMoney to enhance lending, innovative incentives for Coretoshi NFT. Continuously attract Bitcoin inflows and strengthen consumer chain position.

4. BSquared: Collaborating with 0G_labs to create a decentralized AI operating system, laying out a BTC native AI Agent ecosystem. Deepening technological integration through multiple partnerships.

5. Tron: Made a high-profile appearance at three major events in Washington, promoting the compliant development of cryptocurrencies and the adoption of blockchain technology.

![From Trump's 500 billion infrastructure to 90% on-chain transaction intelligence, Web3 is ushering in the AI revolution year｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-e9f5c4468eec5137a130175ae455837b.webp(

Overview of the Rising List

The top 5 tokens with the highest gains in the market over the past week, excluding tokens with minimal trading volume and meme coins ):

1. VTHO: VeThor launches B3TR protocol upgrade to enhance security, UFC collaborates to strengthen NFT ecosystem layout.

2. DEEP: DeepBook V3 daily trading volume hits a new high, with low fee advantages solidifying Sui's DeFi infrastructure position.

3. RAY: Raydium seizes the opportunity of the Trump concept coin to launch 10x leverage contracts, distributing 200,000 USDS to incentivize liquidity.

4. BUZZ: Hive AI upgrades Swarm distributed architecture to achieve multi-agent collaboration, Market Agent intelligently tracks top traders' strategies.

5. SOL: The Trump couple parachuted in, igniting a Meme craze, with on-chain stablecoin supply exceeding 100 billion, a record high. Multicoin Capital released a research report emphasizing technological advantages.

Meme Token Rise Ranking

This week the market experienced wide fluctuations. After Trump and Melania issued TRUMP and MELANIA on Solana, market funds and attention were attracted, leading to a significant drop in other tokens, especially Meme coins.

Social Media Hotspots

This week (, the highest social media attention is on Layer 1 projects. TRUMP coin has caused market fluctuations and fund diversion, while Layer 1 projects have stabilized and rebounded first due to the high yields of DeFi.

After Trump issued TRUMP on Solana, market liquidity was quickly withdrawn. Although the cryptocurrency bill was signed on Thursday and SAB-121 was repealed, it failed to significantly boost market sentiment. Various projects experienced varying degrees of decline, but Layer 1 projects attracted capital inflows due to market optimism about future trends and rising APY of DeFi projects.

![From Trump's 500 billion infrastructure to 90% on-chain transaction intelligence, Web3 is迎来 the AI revolution year｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-79de73d191705192ef2d2a5e4b7c6dee.webp(

Overall Overview of Market Themes

According to weekly return rate statistics, the DeFi sector performs the best, while the GameFi sector performs the worst.

• DeFi Sector: LINK, UNI, and AAVE account for the largest share, totaling 74.54%. This week, they rose by 11.42%, 2.13%, and 7.86% respectively, driving the largest increase in the entire sector. Price fluctuations create arbitrage opportunities.

• Gamefi sector: Long-term lack of market attention and capital inflow has weakened the wealth effect. IMX, BEAM, GALA, SAND, and AXS account for 71.99%, all of which have significantly declined this week.

Preview of Major Crypto Events Next Week

• Thursday, November 30, ): Federal Reserve FOMC announces interest rate decision; U.S. initial jobless claims; Plan B Forum El Salvador 2025; Ethereum Ziirich 2025; Tesla earnings report.

• Friday, November 31, (, ): U.S. December Core PCE Price Index Year-on-Year; OneKey Card announced it will gradually cease services.

Outlook for Next Week

Macro Factors Assessment

Next week, there are several important financial events: the Federal Reserve's interest rate meeting, the US December core PCE price index year-on-year, and the US stock earnings season. The market has basically priced in a steady interest rate in January, and the PCE index may affect the next interest rate decision. Earnings reports from tech giants may cause short-term fluctuations, and the market is expected to maintain a fluctuating trend.

Sector Rotation Trend

DeFi Track: Despite poor market sentiment, investors expect that the policy announcement after February will lead to a widespread increase, with most choosing to hold coins and participate in machine gun pool projects to increase returns.

AI Sector: Market capitalization has decreased to $15 billion for the first time, down 5.66% from last week. Trump's AI infrastructure plan brought a brief rebound, but it was not sustained. Investors are cautiously waiting for Crypto policies. In the long term, AI, as a key supported industry, still has development potential. It is expected that by the end of 2025, 90% of on-chain transactions will be completed by AI agents, and the Crypto market is about to enter the AI era.