Crypto Market Weekly Report: The Rise of AI Leads New Trends

This week, the crypto 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 low market sentiment is mainly influenced by the lack of timely cryptocurrency policies after Trump's inauguration. Although relevant legislation was issued on Thursday, it failed to significantly boost market sentiment, resulting in most tokens declining more than the overall market.

DeFi Ecosystem Development

The DeFi sector performed outstandingly, with TVL increasing from $53.5 billion to $53.8 billion, 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, leading to a general increase in on-chain APY. Projects like Sumer.money and Meteora showed impressive TVL performance, indicating that investors are refocusing on the foundational yields of DeFi.

Development of the AI Track

Influenced by Trump's announcement of a $500 billion AI infrastructure plan, the total market value of the AI sector reached $41.9 billion, but then adjusted due to sluggish market sentiment. 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. The application of TEE technology and emerging narratives such as the Agent economic system are gradually gaining attention.

Public Chain Performance Analysis

Solana and Tron have performed the best, especially Solana, which benefited from the issuance of TRUMP tokens, with the on-chain supply of stablecoins reaching a historic high of $10.138 billion. Emerging public chains like Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields, demonstrating good ecological development potential.

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 clarification of cryptocurrency policies after February. The DeFi and AI sectors are expected to continue benefiting from fundamental improvements and policy support, while competition in the public blockchain ecosystem will intensify.