Market Overview

Overview of Major Market Trends

Market Sentiment and Trends: The market sentiment index has risen to 91%, entering the extreme greed zone. Although BTC briefly surpassed $100,000 on Thursday before retracing, the overall market resilience remains strong. ETH performed well, driving the entire cryptocurrency market upwards, indicating continued optimism towards mainstream coins.

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

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

Meme Coin Market: The Meme coin sector performed relatively sluggishly this week, with a weekly return rate of only 11.94%. The number of new project launches has decreased, and investor interest has significantly declined. Funds are beginning to shift towards projects with practical application scenarios and fundamentals. The level of discussion on social media has decreased, indicating a reduction in investors' risk appetite.

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

Investment Advice: It is recommended that investors maintain a cautiously optimistic attitude and pay attention to the following aspects: First, manage risks well by setting reasonable stop-loss levels and avoiding excessive leverage; Second, focus on allocating resources to liquid staking and the AI Agent sector to seize opportunities in capital rotation; Third, 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; Fourth, maintain sufficient liquidity to cope with potential market fluctuations and adopt a phased investment strategy to avoid buying at high prices.

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 in the market. Altcoins have generally mirrored the broader market this week, showing an upward trend with volatility. ETH has performed strongly, driving a widespread increase in Altcoins. The price increases of various public chain projects have led to a rise in ecological projects, with the market generally expecting a rotation of funds to occur next, maintaining an optimistic outlook on the future performance of Altcoins.

The price of BTC briefly surpassed $100,000 on Thursday. Although it subsequently retreated, market sentiment remains in an extremely greedy phase. A correction may be expected in the future, and investors need to enhance their risk awareness.

Overview of Overall Market Trends

• The cryptocurrency market has shown a volatile upward trend this week, and the sentiment index remains in the greed phase.
• DeFi-related projects have performed outstandingly, showing the market's continued focus on improving base yields.
• The AI Agent project is gradually gaining market attention, influenced by the traditional AI market, and investment opportunities may arise in the next half month.
• The meme sector remains sluggish this week, failing to attract more market attention.
• Various public chain projects have generally risen under the drive of ETH's increase.

Hot Tracks

( Tron ecology

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

Tron chain data

• TVL: Increased from 7.97B last week to 9.32B, an increase of 16.93%, ranking first among large public chains.
• Active accounts: 3.6725 million, up 18.06% from last week, maintaining a high growth rate.
• USDT weekly trading volume: reached $131.4 billion, an increase of 16.23% compared to last week, indicating a continuous growth in on-chain trading volume.
• DeFi project TVL growth: Justlend and SUN increased by 55.34% and 39.49%, respectively.

Based on the above data, the Tron chain continues to grow rapidly, with a significant increase in TRX prices driving up underlying assets. The primary trading chain position of USDT attracts a large number of users to participate, promoting the overall development of the Tron ecosystem.

) AI Agent

Since the AI concept entered the crypto market at the end of last year, it has been a hot track. In October this year, the first AI Agent token, GOAT, was launched, and AI Agent Meme quickly became the new focus of the market. Subsequently, tokens like ACT emerged to lead the market. Investors then turned their attention to the AI Agent launch platforms, with projects like Virtuals Protocol and vvaifu.fun gaining popularity, beginning to develop towards underlying infrastructure. This formed three sub-tracks: AI Agent Meme tokens, issuance platforms, and underlying infrastructure.

At this stage, the AI Agent projects are mainly developing on the Solana, Ton, and Base chains. Solana mainly focuses on vvaifu.fun, Base mainly on Virtuals Protocol and AI Agent Layer, and Ton mainly on Clanker. In the past half month, the prices of VVAIFU, VIRTUAL, and CLANKER have risen rapidly, forming a certain market capitalization.

VVAIFU is mainly traded on Raydium and has been listed on MEXC and Gate. VIRTUAL has high trading volume on Uniswap and Cake, and is listed on Gate, Bybit, Bitgit, MEXC, and others. CLANKER has high trading volume on Uniswap and is listed on Gate, Bitgit, MEXC, and others. Currently, none have been listed on major exchanges, but it is expected that they will eventually be listed, as they are still in the early stages and are worth paying attention to.

This Wednesday, OpenAI announced a 12-day live broadcast to showcase new products, sparking market speculation on the AI sector. Every move by OpenAI will impact AI projects in Crypto. In the next 10 days, the AI sector is expected to see a good increase, and investors should pay more attention to related projects.

Traditional AI projects in the crypto market

| Token | Project Name | Weekly 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

The top 5 projects by TVL growth in the past week ### TVL > 30 million USD ###, data source: Defilama

| Project Name | Last Seven Days 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 deep cooperation with Binance, building high-yield CeDeFi components; independently built BounceBit Chain to provide application scenarios for Restaking.

• Latest Development: This week, the staking rates for various tokens have been 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( Token Not Issued ): ( Recommendation Index: ⭐️⭐️⭐️)

• Project Overview: Liquidity Center for Staked Assets, supporting LST and LRT. Assets can earn staking APR, used for trading, stablecoin yield, and other profit strategies.

• Latest Developments: Partnering with Movement Labs to introduce the Movement Network chain; received investment from Binance Labs; hosting events where staking USDF, asUSDF, and asBTC can earn 5 times AU points.

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

• Project Overview: A decentralized asset management platform that offers yield strategies, staking, trading, and indicator access.

• Latest developments: Product yield has significantly increased, with annualized APY of CRV, CAKE, etc. in sdToken reaching 20.46%-102.16%, and market strategies can reach up to 152%, attracting a large number of users to participate.

Flexa( not issued coins ):( recommendation index:⭐️⭐️)

• Project Overview: Promote the acceptance of cryptocurrency in merchant settlement systems and achieve real-world use through payment networks.

• Latest developments: Significant offline progress has been made, allowing users to pay with the app at thousands of stores across the United States. Through the Zashi-Flexa integration, users can use ZEC for daily expenses.

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

• Project Introduction: Hedera on-chain DEX, launching SAUCE Pro service to provide advanced features.

• Latest developments: HBAR's rise has driven up Hedera's activity, attracting a large number of users as the largest DEX. This week, $33,000 worth of SAUCE was repurchased, with a staking APY of 9.9%. The Epoch 28 event has been launched to reward liquidity providers.

In summary, this week's projects with rapid TVL growth are mainly focused on the liquid staking track (LRT).

(# Overall performance of the track

• The market value of stablecoins continues to grow steadily: USDT increased 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 have decreased due to interest rate cuts, while the arbitrage rates in on-chain DeFi projects have increased due to the rise in the value of crypto assets. Returning to DeFi is a good choice.

Funding Situation: The TVL of DeFi projects rose from $46.8 billion to $53.2 billion, an increase of 13.67%, with a growth rate higher than the previous weeks, maintaining a continuous increase over the past two months, proving that funds continue to flow into DeFi projects.

In-Depth Analysis

Driving Force of Increase:

BTC rebounded again after a pullback this week, with ETH performing slightly better than BTC. Both maintain a strong growth trend, and investors are more optimistic about future movements, becoming more resolute in holding. The recent strength of ETH has led to an increase in APY for various DeFi projects, and investors are actively participating to increase their returns.

Growth Leader:

The performance of liquid staking track projects is outstanding. As the prices of public chain underlying assets rise, it enhances the confidence of holders and incentivizes participation in other investment activities. Liquid staking improves yield by releasing liquidity without changing the quantity of held assets. With the rise in ETH prices, it is expected that the prices of various public chains will also increase, driving the growth of corresponding liquid staking projects.

Investors are advised to pay more attention to liquidity staking projects on various public chains in the near term.

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Performance in Other Tracks

( public chain

The top 5 public chains with the largest TVL growth in the past week ) do not include smaller public chains ###, data source: Defilama

| Project Name | Weekly Growth Rate | 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 WisdomTree and 21Shares applying for multiple altcoin ETFs, with HBAR's market cap being considered undervalued. Focused on on-chain development, promoting AI, payments, and IoT. The largest project in the ecosystem, SaucerSwap, has seen a rapid increase in TVL, boosting overall TVL growth.

Zircuit: ZRC is listed on Coinone and has received support from Crypto.com. Collaborating with Elara to expand use cases. Supported by Kelp DAO, with the gains treasury established on Zircuit, attracting $1 million in ETH on the first day.

Filecoin: FIL rose 44.36% this week, driving the chain.