Crypto Market Weekly Report: Investor Sentiment Extremely Fearful, DeFi and AI Agents Become the Focus

Market Overview

This week, the crypto market is showing an overall downward trend, with the market sentiment index dropping from 53% to 7%, entering the extreme fear zone. The Federal Reserve's hawkish statements have led to approximately $1 billion in positions being forcibly liquidated, and the market is undergoing a significant deleveraging process.

The Decentralized Finance sector has seen its first negative growth in TVL in nearly two months (-2.21%), but the market value of stablecoins continues to grow (USDT +0.55%, USDC +1.44%), indicating a continuous inflow of fundamental liquidity. Projects like gun pools and other stable yield initiatives are in high demand.

The market size of the AI Agent track has reached 9.9 billion USD, with investment focus shifting from speculative AI Meme coins to infrastructure construction, indicating that the market is gradually maturing.

The meme coin market has clearly cooled down, with large-scale capital withdrawals, and investors are more inclined to seek projects with substantial application value.

The public blockchain sector has shown strong resilience during significant market fluctuations, becoming the preferred choice for risk aversion, reflecting the market's continued confidence in infrastructure.

As the Christmas holidays approach, market liquidity is expected to decline. It is recommended to adopt a defensive allocation strategy, focusing on BTC and ETH, while also paying attention to DeFi stable yield and AI infrastructure projects. However, one must be cautious of the increased risk of volatility that may occur during the holiday period.

Hot Tracks

AI Agent

This week, the AI Agent sector has the highest discussion level, with market focus shifting from AI Meme tokens to infrastructure construction. The AI Agent sector includes multiple sub-sectors such as AI DePIN, AI Platform, AI Rollup, and AI infra, showing great prospects for integration with blockchain.

The top five AI Agent projects by market capitalization:

1. Worldcoin (WLD)
2. Fetch.ai (FET)
3. SingularityNET (AGIX)
4. Ocean Protocol (OCEAN)
5. Oasis Network (ROSE)

Decentralized Finance赛道

Top 5 TVL Growth Rankings

1. VaultCraft (VCX): New stETH 4X leverage Looper, multi-chain deployment, offering up to 7%+ APY.
2. Hyperliquid (HYPE): Added multiple popular cryptocurrency trading pairs, supporting up to 5x leverage.
3. Resolv: Completed integration with Base and launched USR lending service.
4. Babylon: Deepen cooperation with Layeredge and Sui to promote the construction of a modular ecosystem.
5. Lista DAO (LISTA): launched Gauge Voting and Bribe Market features.

Overall Performance of the Track

• The market value of stablecoins is steadily increasing: USDT up 0.55%, USDC up 1.44%.
• The TVL of DeFi projects decreased from 54.1 billion USD to 52.9 billion USD, marking the first negative growth in nearly two months (-2.21%).
• Mainly affected by the significant market decline, some contracts and loans were liquidated.

public chain

Top 5 public chains with the highest TVL growth:

1. Hyperliquid: Added multiple popular cryptocurrencies for leveraged trading, with open contracts exceeding $4.3 billion.
2. Bitcoin: The demand for hedging drives the increase in TVL of the BTCFi project.
3. BSC: Introduced multiple new projects and launched a Meme innovation competition.
4. AILayer: Collaborating with OrochiNetwork to host community interactive events.
5. Mantle: Integrates Compound III and launches a large incentive campaign.

Gain List

The top 50 tokens by price increase 019283746656574839201 excluding small-cap and Meme coins (:

1. UXLINK: Strategic cooperation reached with DuckChain, user count exceeds 2 million.
2. USUAL: Launch innovative incentive mechanisms, TVL rapidly increases.
3. MOCA: Released version 3.0 and reached a partnership with SK Planet.
4. HYPE: Added leveraged trading features for multiple popular cryptocurrencies.
5. VELO: Collaborating with Sony Blockchain Lab to expand into new Layer 2 solutions.

) social media hot topic

The most关注ed L1 project on social media this week. While the market has seen a significant decline, various public chains have performed relatively well, becoming the preferred choice for investors looking to hedge.

Overall Overview of Market Themes

In terms of weekly return rate, the Cefi sector performed the best ### -6.61% (, while the Gamefi sector performed the worst ) -26.37% (.

In the CeFi sector, BNB and BGB have a large market share and performed better than the overall market this week. The GameFi sector lacks attention and capital inflow, with major tokens performing worse than the overall market.

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Outlook for Next Week

• As the United States enters the Christmas holiday, the market may experience increased volatility.
• The DeFi track machine gun pool project may continue to attract attention.
• The AI Agent track is expanding in scale, accelerating integration with existing crypto products.

Investment Strategy Recommendations

1. Maintain a defensive allocation, increase the allocation of top assets like BTC and ETH.
2. Participate in high-yield machine gun pool Decentralized Finance projects to hedge risks.
3. Stay cautious, strictly control your positions, and implement good risk management.

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