Crypto Market Weekly Report: DeFi and AI Tracks Lead Rebound Trend

Market Overview

The cryptocurrency market has shown a clear rebound trend this week, with the sentiment index rising from 11% to 35%. Although it is still in the panic zone, there has been significant improvement. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still entering the market. The rebound in the market is mainly driven by two factors: first, the US CPI data met expectations, and second, the optimistic outlook on the improvement of the policy environment. Small-cap tokens have generally outperformed the broader market, especially DeFi and AI-related tokens, which have seen significant increases, indicating a trend of funds beginning to shift from large-cap tokens to small-cap tokens.

The total locked value in the DeFi sector is ( TVL), which has slightly increased to 53.5 billion USD, a month-on-month growth of about 1%. It is worth noting that DeFAI, as a product combining DeFi and AI, saw its market value skyrocket from 600 million USD to 3.2 billion USD within a week, demonstrating the market's strong enthusiasm for innovative DeFi applications.

The AI Agent sector continues to show a strong development trend, shifting from simple AI token trading to deeper application scenario development. The rise of DeFAI marks the entry of AI applications in the crypto field into the 2.0 stage, mainly reflected in four directions: user-friendly AI interfaces, portfolio management, infrastructure construction, and market analysis and forecasting. Leading projects such as Griffain, Anon, and AXIBT show that the market is transitioning from the proof-of-concept stage to the actual application stage.

The Meme coin sector performed relatively flat this week, with market attention clearly retreating from the highs of the fourth quarter of last year. This indicates that investors' risk appetite is shifting from purely speculative Meme tokens to projects with practical application scenarios.

Layer 1 public chains are showing a stable upward trend overall, but the increase is not as significant as that of the DeFi and AI sectors. Among mainstream public chains, those with advantages in AI and DeFi ecosystems are performing better, reflecting that the value of underlying public chains increasingly depends on the prosperity of their upper-level application ecosystems. It is worth noting that public chains supporting AI computation are beginning to attract market attention, indicating that a new round of competition among public chains may revolve around AI computation capabilities.

Hot Track

Decentralized Finance

This week, DeFAI has become the focus of the market, with its market cap rising from $600 million last week to $3.2 billion, achieving more than 4 times growth in a week. The DeFAI sector can be divided into four categories of projects: abstract/user-friendly AI, yield optimization and portfolio management, DeFAI infrastructure or platforms, and market analysis and forecasting. Currently, DeFAI is still in the early stages, with most projects focused on abstract AI and market analysis forecasting. Representative projects include Griffain, Anon, and AXIBT.

Decentralized Finance赛道

The projects with rapid TVL growth in the past week are mainly concentrated in the bullet pool projects. Notable projects include:

• Folks Finance: Collaborated with DeBank to launch a social task event; deepened cooperation with Algorand to promote the gALGO liquidity staking governance mechanism.
• Beets: stS staking volume突破8899万, partnered with PaintSwap and introduced SolvProtocol.
• AlphaFi: Optimizing liquidity solutions to promote DeFi development on the Sui chain, demonstrating strong community participation.
• Echelon Market: Coming soon, actively recruiting engineers and organizing community discussion meetings.
• Astherus: Launched USDF stablecoin, TVL surpassed 100 million USD, becoming the second largest perpetual contract trading platform in the market.

Performance in Other Tracks

public chain

Outstanding public chain projects include:

• Sonic: Launched various encryption currency DeFi applications, introduced real-time deposit functionality, and collaborated with RedotPay to develop global payment solutions.
• Hyperliquid: Launch of the SOLV token, achieving "Day 1 three-end synchronization".
• Algorand: Completed the 4.0 version upgrade, launched the NodeKit tool, and established strategic partnerships with Mastercard and others.
• BSquared: Processed over 101 million transactions, actively promoting the transformation of Bitcoin into an AI innovation hub.
• Mode: Launching the "Agentic Economy" initiative and releasing the Mode 2025 DeFAI technology stack plan.

Overview of the Rise Ranking

This week's outstanding tokens include ANON, BUZZ, CGPT, ARC, and GRIFFAIN, mainly focused on AI and Decentralized Finance related projects.

Market Outlook

The short-term market will be influenced by policy changes, and increased volatility is expected. It is recommended that investors focus on projects with existing practical application scenarios when selecting DeFAI projects, avoiding the pursuit of purely conceptual speculation. In terms of DeFi investment, attention can be paid to the yield opportunities of machine gun pool projects, but risk must be strictly controlled. Regarding timing, it is advised to observe policy changes in the short term, avoid blindly chasing highs, and ensure the safety of the investment portfolio.