Crypto Market Weekly Report: AI Track Continues to Heat Up

Market Overview

This week, the crypto market has shown an upward trend, with the market sentiment index rising from 10% to 19%. Although it is still in the panic zone, there are signs of recovery. Despite the New Year holiday not yet being over and market liquidity not fully restored, funds have begun to gradually flow back. Overall, altcoins have performed better than the benchmark index, but they are expected to sync with the benchmark index in the short term.

The TVL of DeFi projects increased by 0.95% to $53.2 billion, ending two consecutive weeks of negative growth. The performance of Gun Pool and Prep DEX projects was outstanding, benefiting from rising market base rates and decreased holiday liquidity.

The AI Agent sector continues to be hot, with a market size of $12.2 billion and a week-on-week growth of 12%. The market focus has shifted from AI Memes to AI infrastructure projects, such as Phala Network, which have performed excellently.

The Meme coin market is concentrated on AI-related projects, driven by the wealth creation effect brought by AI Agent's autonomous token issuance. Public chain projects have performed well during the rebound, with public chains that support AI development, such as Solana and zkSync Era, standing out.

Hot Track Analysis

AI Agent

The AI Agent track continues to be the market focus, mainly driven by AI Agent's autonomous token issuance. Some Meme coins issued through Virtuals and ai16z have surged significantly, creating a wealth effect. Market attention has shifted from AI Meme to AI infrastructure projects, such as Phala Network.

DeFi

The top five projects in TVL growth rankings are: Resolv, Bluefin, StakeStone, Euler, and Hyperliquid. The gun pool and Prep DEX projects performed well, benefiting from the rise in market base interest rates and the decline in holiday liquidity.

public chain

The top five public chains with the highest increase in TVL are: Zircuit, Hyperliquid, Toncoin, ZKsync Era, and Solana. Most public chains are actively developing AI-related businesses, such as Solana launching the AI Agent Kit, and ZKsync Era emphasizing the development of ZK technology.

Market Trend Outlook

Next week's release of U.S. employment data may impact the Federal Reserve's interest rate cut decision, expected to bring market volatility. As the holiday ends and institutional investors return, market liquidity is expected to recover. It is recommended for investors:

1. Maintain a defensive allocation, increasing the proportion of leading assets such as BTC and ETH.
2. Participate moderately in high-yield gun pools and Prep DEX projects
3. Focus on the development of AI infrastructure projects
4. Strictly control positions and implement risk management.

Overall, the market shows a slow recovery trend, the AI sector continues to heat up, and DeFi and public chain projects are actively laying out AI business. Investors should remain cautious and pay attention to the impact of macro factors such as U.S. employment data.