Decentralized Finance is once again experiencing a rise, with DEX leading the market. Memes are making a comeback on stage. Beware of fluctuations triggered by the Fed's interest rate decisions.

Market Overview

Main Market Trends

• The market sentiment index dropped from 91% to 53%, still in the greed zone, but BTC maintains high volatility while Altcoins are generally under pressure, leading to increased market differentiation.

• The market capitalization of USDT and USDC has both increased, with respective gains of +2.91% and +3.23%, and the total TVL in DeFi continues to rise to 54.1 billion USD, as the overall market continues to attract new funds.

• The DeFi sector leads the market with a weekly return rate of 16.47%, and DEX trading volume has reached a new high of 630 billion USD in 2024, demonstrating strong development momentum.

• The Meme coin market has returned to the market spotlight, showing active performance amid market fluctuations, bringing new liquidity and user growth points to the market.

• DEX projects have garnered the highest attention, while sectors like AI and GameFi are performing weakly. Market focus is shifting towards infrastructure and liquidity sectors.

• It is recommended that investors remain cautious, focusing on opportunities in re-staking projects and the DEX sector, while closely monitoring the potential market fluctuations that may arise from next week's Federal Reserve interest rate meeting.

( Market Sentiment Index Analysis

• The market sentiment index has dropped from 91% last week to 53%, still remaining in the bullish range.

• Altcoins underperformed the benchmark index this week, showing a downward oscillation trend. After a decline in the first half of the week, most assets failed to recover their losses. Due to leveraged positions, the market experienced about $2 billion in forced liquidations, with significant deleveraging among long positions.

• Given the current market structure, it is expected that Altcoins will short-term move in sync with the benchmark index, with a low probability of independent market trends.

![DeFi sector valuation reconstruction, sector rotation is evident｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-5b2c1a2fbf59c11db9d1fd054e4bdd62.webp(

) Overview of Overall Market Trends

• The cryptocurrency market has been in a wide-ranging fluctuation trend this week, and the sentiment index remains in a bullish phase.

• DeFi-related cryptocurrency projects have performed well, demonstrating the market's ongoing interest in enhancing basic yields.

• DEX projects performed well this week, and on-chain investors have started to actively participate in on-chain investment activities.

• The Meme sector has returned to the spotlight this week and is starting to attract market attention.

Hot Track

DEX

This week, due to significant overall price fluctuations in the market, many profit opportunities have been created for investors. On-chain investors are increasingly using DEX for trading. As on-chain funds and users continue to enter the DEX arena, it has driven the growth trend of DEX projects this week.

(# On-chain data of DEX

The TVL of DEX track projects has increased from 25.22B last week to 26.58B now, a growth rate of 5.39%, with funds actively entering DEX projects.

The trading volume of DEX reached its highest value of 63 billion USD in mid-2024 this week, with a trading volume of 7.58 billion USD in the last 24 hours, showing a surge in trading volume in the DEX sector.

The DEX sector is showing a clear trend of business model upgrades. Leading protocols represented by Hyperliquid and dYdX are transitioning from a single trading function to a comprehensive financial infrastructure. This evolutionary path is reflected in: the protocols are based on their own chain architecture, achieving vertical integration through functional aggregation, creating a one-stop DeFi service ecosystem. Such architectural innovations signify that the DEX track is evolving from a single trading level towards an all-encompassing financial infrastructure, and the reconstruction of track value is underway.

) SUI

The Sui ecosystem has garnered significant discussion this week, with the SUI price rising by 7.8%, outperforming BTC and ETH. DeFi projects within the Sui ecosystem are showing excellent growth.

Sui chain DeFi project data

• TVL increased from 1.598b last week to 1.793b, a growth of 12.88%, with on-chain funds actively entering Sui.

• The total number of users reached 66,543,317, an increase of 2,184,755 from last week, 3.39%.

• The total trading volume of the main on-chain DEXs Cetus, Aftermath Finance, and BlueMove DEX has exceeded $35 billion, with an average daily trading volume of $466 million.

• The top three in TVL rankings, NAVI Protocol, Suilend, and Aftermath Finance, saw growth rates of 1.14%, 17.22%, and 1.72% respectively this week.

Based on the above data, the Sui chain continues to develop rapidly. The SUI price outperforms the market, with the rise in underlying assets driving the growth of APY in on-chain DeFi projects. Additionally, the overall market volatility creates profit opportunities, attracting a large number of on-chain users to participate, thus promoting the development of the entire Sui ecosystem.

DeFi Track

TVL Growth Ranking

The top 5 projects by TVL growth in the past week ### excluding projects with TVL less than 30 million USD ###:

| Project Name | Weekly Growth Rate | TVL###million( | |--------|--------|--------------| | Synthetix | 87.69% | 576.82 | | Babylon | 67.32% | 3782.36 | | Usual Money | 53.61% | 833.76 | | BounceBit | 50.31% | 664.98 | | Equilibria | 40.27% | 281.03 |

)# Synthetix###SNX(:)Recommendation Rating:⭐️⭐️⭐️⭐️(

• Project Introduction: A decentralized synthetic asset protocol based on Ethereum, allowing users to mint synthetic assets by collateralizing SNX tokens.

• Latest developments: This week, we increased the APY for LP users, raising the share of V3 LP trading fees from 40% to 60%. We completed the acquisition of the leveraged token platform TLX, integrating leveraged token functions and launching an incentive program.

)# Babylon### Not Issued Token (: ) Recommendation Index: ⭐️⭐️⭐️⭐️⭐️(

• Project Introduction: Aimed at enhancing the security of other PoS blockchains using the security of Bitcoin, the project activates idle Bitcoin assets through a trustless staking mechanism.

• Latest developments: BTC shows strong performance, users are optimistic about future developments, with more options for interest-bearing projects based on BTC. Binance has announced that users can directly stake BTC in Babylon from their accounts to earn returns, bringing a significant influx of new funds to the project.

)# Usual Money###USUAL(:)Recommended Index:⭐️⭐️⭐️(

• Project Introduction: A stablecoin project supported by Binance, providing decentralized stablecoin solutions.

• Latest Development: After the Checker upgrade, the bond product has an annual yield of 48% for USD0++, while the average APY for USD0/USD0++ and USD0/USDC in the Curve is 54% and 52%, respectively. This reduces the USUAL minting volume by 17%, increases the price, and attracts users to participate in high-yield arbitrage.

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

• Project Overview: A re-staking base layer on the Bitcoin ecosystem, in deep collaboration with Binance.

• Latest developments: Increased staking rates for various tokens, with 30-day annualized returns of 54.25% for USDT, 24.55% for BTC, 37.13% for BNB, and 37.7% for ETH, attracting a large number of users to participate in staking. Collaborating with Ondo to introduce tokenized RWA.

)# Equilibria###EQB(:)Recommended Index:⭐️⭐️⭐️(

• Project Introduction: The Machine Gun Pool project utilizes Pendle's veToken to enhance the yield model.

• Latest developments: Strengthening cooperation with Curve, launching multiple new enhanced pools with a maximum APY of 59%, attracting users to participate in arbitrage.

) Overall performance of the track

• The market value of stablecoins is steadily increasing: USDT has grown by 2.91% to $145.1 billion, and USDC has grown by 3.23% to $41.5 billion, indicating a continuous inflow of funds.

• Liquidity is gradually increasing: The risk-free arbitrage rates in traditional markets are declining, while the arbitrage rates for on-chain DeFi projects are increasing due to the rise in the value of crypto assets, making a return to DeFi a good choice.

• Funding status: The TVL of DeFi projects increased from $53.2 billion to $54.1 billion, with an increase of 1.69%, maintaining a continuous upward trend for nearly two months.

![DeFi sector valuation reconstruction, sector rotation evident｜Frontier Lab Crypto Market Weekly]###https://img-cdn.gateio.im/webp-social/moments-b30b5d38b44bf527742aea9a0a7119f6.webp(

) in-depth analysis

Driving Force of Increase:

The core driving factors for this round of price increase: the market entering a bull market cycle has led to an increase in liquidity demand, pushing up the base borrowing rates and amplifying the profit space for arbitrage strategies in DeFi protocols. Specifically:

• Market Environment: The bull market cycle brings an overall increase in liquidity demand.
• Interest rate side: The basic lending rate has increased, reflecting market expectations for funding pricing.
• Yield side: The yield rate of the circular arbitrage strategy has expanded, and the protocol's endogenous income has significantly improved.

This conduction mechanism strengthens the intrinsic value support of the DeFi sector, forming a positive growth momentum.

Performance in Other Tracks

( public chain

The top 5 public chains by TVL growth in the past week ) do not include public chains with smaller TVL ###:

| Project Name | 7-Day Increase | TVL(million) | |--------|--------|--------------| | Hyperliquid | 21.23% | 2606.34 | | Sui | 14.45% | 1870.36 | | Algorand | 10.99% | 201.15 | | PulseChain | 7.33% | 953.99 | | Bitcoin | 6.99% | 4854.36 |

Hyperliquid:

This week, the market has been highly volatile, and the number of users participating in on-chain trading has surged. Hyperliquid's open interest reached $3.5 billion, surpassing DYDX to become the largest Perp DEX on-chain. After the launch of the popular project ME, trading volume quickly expanded.

Sui:

Movement's token issuance drives the rise of the Move ecosystem, with Sui being the focus as a leader. Collaborating with Backpack and Phantom wallets to support SUI. The on-chain meme coin KAPI is gaining popularity, attracting traffic and funds. The daily trading volume of on-chain DEX has surpassed $466 million, and ecological development is rapid.

(# Algorand: The on-chain Meme coin MONKO is gaining popularity, attracting attention and funds. It has announced support for RWA track projects. USDCa and EURD comply with MiCA standards and can continue to provide services to European users.

)# PulseChain: On-chain meme coins are active, bringing about wealth creation effects. The trading volume of the largest DEX PulseX has increased by 62%. There are rumors in the market that PLS will be listed on Binance, allowing users to enter the ecosystem to earn PLS.

(# Bitcoin: BTC performed well, with a small decline and a return to historical highs. Users are optimistic about the future market, with more choosing BTCFi projects to earn extra yields, driving the increase in TVL.

) Overview of the Price Increase Rankings

The top 5 tokens with the highest price increase in the past week excluding low trading volume tokens and Meme coins ###:

| Token | Project Name | Weekly Increase | Circulating Market Cap | Circulation Rate | |-----|--------|--------|--------|------| | USUAL | Usual | 98.57% | $257,540,796 | 8.37% | | BGB | Bitget | 95.01% | $4,816,158,400 | 69.99% | | SUSHI | Sushi | 65.77% | $473,147,704 | 69.06% | | ORCA | ORCA | 48.16% | $299,415,167 | 53.27% | | ACX | Across Protocol | 45.88% | $382,450,514 | 44.39% |

This week's gainers list shows a concentrated sector characteristic, with most of the rising tokens belonging to the public chain track.

USUAL:

After the Checker upgrade, the annualized returns of the bond product USD0++ and related trading pairs have significantly increased, attracting users to participate in high-yield arbitrage.

BGB:

Launching popular tokens, especially Meme tokens, attracts users and capital. The CEO announced consideration of re-entering the US market. Trading volume surpassed OKX, becoming the third largest exchange.

SUSHI:

Launch the Dojo Agent and Tweet Token features, supporting tweet tokenization and the creation of Meme coins, significantly increasing trading volume. Propose an asset diversification strategy to reduce volatility and increase returns.

ORCA:

Collaborate with multiple platforms of Binance. Launch a new Token creation tool that supports Solana and Eclipse networks. Partner with HawkFi and NATIX Network to enhance the DeFi experience.

ACX:

Cooperated with Binance, ACX token is listed on multiple platforms. Collaborated with exchanges such as HTX Global, Bitvavo, and Yodl, and deepened cooperation with Uniswap.

( Meme Token Price Increase Ranking

| Token | Project Name | Last 7 Days Increase | Circulating Market Cap | Belonging Blockchain | |-----|--------|--------|--------|------| | FARTCOIN | Fartcoin | 187.53% | $507,074,756 | Solana | | BABYDOGE | Baby Doge Coin | 117.03% | $861,228,822 | BSC | | WOLF | LandWolf | 74.42% | $235,865,534 | Ethereum | | TURBO | Turbo | 52.45% | $879,341,386 | Ethereum | | DOG | DOG•GO•TO•THE•MOON )Runes### | 40