Market Overview

Main Market Trends

Market Sentiment and Trends: The market sentiment index has risen to 91%, entering the extreme greed zone. Although BTC briefly broke through 100,000 USD on Thursday before retracing, the overall market resilience remains strong. The strong performance of ETH has driven a widespread rally in the cryptocurrency market, indicating continued optimism for mainstream coins.

Capital Flow Analysis: This week, the market capitalization of stablecoins steadily increased, with USDT rising by 1.74% to $141 billion and USDC increasing by 2.03% to $40.2 billion, indicating a continuous influx of new funds into the cryptocurrency market. On-chain data shows that large transfers are active, and there are clear signs of institutional funds entering the market. The off-exchange premium remains within a reasonable range, reflecting a healthy supply and demand for capital in the market.

DeFi Sector Performance: The total locked value in DeFi ( TVL ) has significantly increased from 46.8 billion USD to 53.2 billion USD, a growth of 13.67%. Liquid staking projects performed the best, mainly benefiting from the rise in underlying asset prices and increased staking yields. The activity of lending protocols has significantly increased, reflecting a rise in leverage demand. DEX trading volumes continue to rise, indicating an increase in market activity.

Meme Coin Market: The Meme coin sector has shown relatively sluggish performance this week, with a weekly return rate of only 11.94%. The number of new project launches has decreased, and investor interest has noticeably diminished. Funds are beginning to shift towards projects with practical application scenarios and fundamentals. The decline in social media discussion intensity reflects a decrease in investor risk appetite.

Hot Attention: Layer 1 projects have gained the highest social media attention, with the PayFi sector achieving a weekly return rate of 40.04%. AI Agent projects have started to attract a new round of market attention, especially projects on Solana, TON, and Base chains. High-yield staking products in DeFi projects continue to receive attention. The trading activity in the NFT market has seen a rebound, but overall valuations are still searching for a bottom.

Investment Advice:

1. Maintain a cautiously optimistic attitude, manage risks properly, set reasonable stop-loss levels, and avoid excessive leverage.
2. Focus on the layout of liquid staking and AI Agent tracks to seize opportunities for capital rotation.
3. Pay attention to the impact of important events, including next week's Microsoft Bitcoin investment proposal (12 December 11 ), US CPI data, and the European Central Bank interest rate decision.
4. Maintain sufficient liquidity to respond to potential market fluctuations, and adopt a phased position-building strategy to avoid chasing highs.

Market Sentiment Index Analysis

The market sentiment index has risen to 91%, a significant increase from last week's 83%, indicating an extreme greed phase. Altcoins this week have generally followed the trend of the broader market, showing a fluctuating upward trend. ETH has performed strongly, driving a rally in Altcoins. Various public chain projects have also boosted the projects within their ecosystems. The market widely anticipates a rotation of funds in the near future and holds an optimistic outlook on the future trends of Altcoins.

The price of BTC briefly surpassed $100,000 on Thursday. Although it subsequently fell back, market sentiment remains in an extreme greed phase. A certain degree of correction is still expected in the future, and investors need to enhance their risk awareness.

Overview of Overall Market Trends

• The cryptocurrency market is in a volatile upward trend this week, with the sentiment index still in the greed phase.
• DeFi-related projects have performed outstandingly, showing the market's ongoing focus on enhancing basic yields.
• The AI Agent project is gradually gaining market attention, and there may be investment opportunities in the next two weeks.
• The meme track has continued to perform poorly this week, receiving little more attention from the market.
• Various public chain projects have generally risen under the leadership of ETH.

Hot Track

Tron Ecosystem

This week, the price of TRX tokens has risen significantly, bringing high market enthusiasm to Tron. With continuous capital inflow, Tron, as the main trading chain for USDT, has also seen a substantial increase in on-chain activities.

Tron Chain Data

• TVL: Increased from 7.97B last week to 9.32B, a growth of 16.93%, ranking first in growth rate among major public chains.
• Active accounts: reached 3.6725 million, an increase of 18.06% compared to last week, maintaining a high growth rate.
• USDT weekly trading volume: reached 131.4 billion USD, an increase of 16.23% compared to last week, indicating a continuous increase in on-chain trading volume.
• DeFi project TVL growth: Justlend and SUN have growth rates of 55.34% and 39.49% respectively, with funds continuously entering the DeFi space.

Based on the above data, the Tron chain is currently maintaining rapid development. The significant rise in TRX prices has driven up the underlying assets, coupled with USDT's position as the main trading chain, attracting a large number of users to participate and promoting the development of the entire ecosystem.

AI Agent

Since the AI concept entered the cryptocurrency market at the end of last year, AI has been a hot track. After the launch of the first AI Agent token GOAT in October, AI Agent Meme quickly became the new focus. Subsequently, investors turned their attention to AI Agent token launch platforms, such as Virtuals Protocol and vvaifu.fun. Currently, three sub-tracks have formed: AI Agent Meme coins, issuance platforms, and underlying infrastructure.

Main development chains: Solana, TON, and Base. Launch platforms: Solana is mainly vvaifu.fun, Base is mainly Virtuals Protocol and AI Agent Layer, and TON is mainly Clanker. In the past half month, the prices of VVAIFU, VIRTUAL, and CLANKER have surged, forming a certain market capitalization scale.

This Wednesday, OpenAI launched a 12-day live broadcast to showcase new products, sparking market speculation on the AI sector. As a leader in the AI industry, OpenAI's actions have a significant impact on crypto AI projects. The AI sector may see a good increase in value over the next 10 days, and investors should pay more attention to related projects.

Performance of Traditional AI Projects

| Token | Project Name | 7-Day Change | Circulating Market Cap | |------|---------------|--------|-------------| | TAO | Bittensor | 22.46% | 5,319,989,872 | | FET | Fetch.ai | 25.89% | 5,288,426,405 | | RENDER | Render | 19.65% | 5,227,613,836 | | WLD | Worldcoin | 43.41% | 2,986,557,188 | | AKT | Akash Network | 6.87% | 1,121,411,518 | | ARKM | Arkham | 15.36% | 830,921,472 | | GLM | Golem | 12.47% | 523,951,936 | | AGIX | SingularityNET | 20.58% | 296,226,702 | | TRAC | OriginTrail | 8.01% | 453,330,796 |

DeFi Track

TVL growth ranking

Top 5 projects by TVL increase in the past week ( TVL > 30 million USD )

| Project Name | Seven-Day Increase | TVL(million) | |-----------|--------|--------------| | BounceBit | 134.26% | 450.13 | | Astherus | 102.65% | 132.13 | | StakeDAO | 77.17% | 176.42 | | Flexa | 74.51% | 338.32 | | SaucerSwap | 68.16% | 136.37 |

BounceBit(BB):( Recommendation Index: ⭐️⭐️⭐️⭐️)

• Project Introduction: Bitcoin ecosystem re-staking underlying layer, in-depth cooperation with Binance, architecture of CeDeFi components; building BounceBit Chain to provide scenarios for Restaking.
• Latest developments: This week, the staking interest rates for various tokens have increased, with USDT at an annualized rate of 35.45% for 30 days, BTC at 39.85%, BNB at 25.91%, and ETH at 30.57%, attracting a large number of users to participate in staking.

Astherus( Not Issued Token ): ( Recommendation Index: ⭐️⭐️⭐️)

• Project Introduction: Liquidity center for staked assets, supporting LST and LRT. Users can earn staking APR and utilize it for trading, stablecoin Yield, and other strategies.
• Latest developments: Introduced Movement Network chain in collaboration with Movement Labs, receiving investment from Binance Labs. Hosting events where staking USDF, asUSDF, and asBTC can earn 5x AU points.

Stake DAO(SDT):(Recommendation Index:⭐️⭐️⭐️)

• Project Introduction: A decentralized asset management platform that provides simplified access to yield strategies, staking, trading, and indicators.
• Latest developments: The yield rates of various products have significantly increased, with the annualized APY of sdToken reaching a maximum of 102.16% and the market strategy APY reaching a maximum of 152%, attracting a large number of users to participate.

Flexa( No Token Issued ): ( Recommendation Index: ⭐️⭐️ )

• Project Overview: Promote the acceptance of cryptocurrencies in merchant settlement systems, achieving the use of digital assets in the real world.
• Latest Development: Offline progress has been made, allowing users to make payments using the APP at thousands of stores in the United States. Through the Zashi-Flexa integration, users can use ZEC for everyday spending.

SaucerSwap(SAUCE):( Recommendation Index:⭐️⭐️⭐️)

• Project Introduction: DEX based on Hedera, launching SAUCE Pro advanced feature services.
• Latest developments: HBAR's surge has driven up interest, attracting a large number of users as the largest DEX. Conducting SAUCE buybacks and raising the staking APY to 9.9%. Launching Epoch 28 event to reward liquidity providers.

In summary, this week's projects with rapid TVL growth are mainly concentrated in the liquidity staking track (LRT).

Overall performance of the track

• The market value of stablecoins is steadily increasing: USDT rose by 1.74% to $141 billion, and USDC increased by 2.03% to $40.2 billion, indicating a continuous influx of funds.
• Liquidity is gradually increasing: The risk-free arbitrage rates in traditional markets are declining, while the arbitrage rates of on-chain DeFi projects are rising due to the increase in the value of crypto assets, making a return to DeFi a better choice.

DeFi TVL in various sectors: The TVL of DeFi projects increased from $46.8 billion to $53.2 billion, a rise of 13.67%. The growth rate is higher than in previous weeks and has maintained a continuous upward trend for nearly two months, proving that funds are continuously flowing in.

In-depth Analysis

Driving Forces of Increase: BTC and ETH prices continue to rise, and the market is optimistic about their future trends. ETH's strong performance drives the APY of various DeFi projects higher, attracting investors to actively participate to increase their returns.

Growth Leader: The liquidity staking project has shown outstanding performance. The price of underlying assets on various public chains has risen, enhancing confidence in holding coins while encouraging users to participate in investment activities to increase returns. Liquidity staking improves the yield without changing the quantity of underlying assets, and its effective operation relies on the increase in the price of the underlying assets. It is expected that the prices of various public chains will rise alongside ETH, driving the growth of liquidity staking projects.

It is recommended that investors pay more attention to liquidity staking projects of various public chains in the near term.

Performance in Other Tracks

Public Chain

Top 5 Public Chain TVL Growth in the Past Week

| Project Name | Weekly Increase | TVL(million) | |---------|--------|--------------| | Hedera | 74.42% | 176.93 | | Zircuit | 70.79% | 329.84 | | Filecoin | 54.12% | 120.54 | | EOS | 47.66% | 259.38 | | Kaia | 41.28% | 117.16 |

Hedera: The surge in HBAR is due to its inclusion in ETF applications, and its market value is considered undervalued. Focused on on-chain development, promoting AI, payments, and IoT growth. The largest project in the ecosystem, SaucerSwap, is experiencing rapid growth in TVL.

Zircuit: ZRC listed on the South Korean exchange Coinone, supported by Crypto.com. Collaborating with Elara to expand its use cases. Supported by Kelp DAO, attracting 1 million USD in ETH on the day of launch.

Filecoin: FIL surged 44.36% this week, driving on-chain staking activities. Major LST and LRT projects GLIF and Parasail saw growth exceeding 36%.

EOS: Participating in the creation of the exSat Network for BTC-L2. Emphasizing ecological construction, focusing on Gamefi, AI, and Depin. This week, it has increased by 68.7%, driving on-chain activities.

Kaia: Launched Kaia Portal v1.3 supporting lending protocols. Activate on-chain activities, offer high rewards, and attract users to participate in Epoch 1 staking.

Overview of the Increase Ranking

Top 5 Tokens with the Largest Price Increase in the Past Week ( Excluding Tokens with Low Trading Volume and Meme Coins )

| Token | Project Name | 7-Day Change | Circulating Market Cap | Circulation Rate | |------|---------------|--------|-------------|-------| | HYPE | Hyperliquid | 324.49% | 4,524,840,415 | 33.39% | | OL | Open loot | 304.84% | 122,785,197 | 4.73% | | CVX | Convex