Market Overview

This week, the cryptocurrency market has shown a wide range of fluctuations, with the market sentiment index dropping from 35% last week to 10%, entering a state of extreme panic. The market capitalization of stablecoins continues to grow, with USDT reaching 138.9 billion and USDC reaching 51.9 billion, indicating that institutional funds are still entering the market. The poor market sentiment is mainly influenced by Trump not promptly introducing cryptocurrency-related policies after taking office. Although Trump signed the cryptocurrency bill on Thursday and the SEC repealed SAB-121, it failed to significantly boost market sentiment, resulting in most tokens falling more than the overall market, with Altcoins performing weaker than the benchmark index.

Development of DeFi Ecosystem

The DeFi sector performed outstandingly, with the TVL increasing from $53.5 billion to $53.8 billion, a growth rate of 0.56%, showing positive growth for two consecutive weeks. This is mainly due to the rise in the prices of underlying assets and project incentive measures, with on-chain APY generally increasing. Projects such as Sumer.money and Meteora have shown remarkable performance in terms of TVL, indicating that investors are beginning to refocus on the fundamental yields in the DeFi space.

Development of the AI Track

Affected by Trump's announcement of a $500 billion AI infrastructure plan, the total market value of the AI sector reached $41.9 billion, but subsequently experienced a correction due to weak market sentiment. In terms of projects, Virtuals Protocol, Swarms, and others continue to promote technological innovation, focusing on autonomous trading agents, multi-agent collaborative frameworks, and infrastructure construction, while the application of TEE technology, as well as emerging narratives such as the agent economic system, are gradually gaining attention.

Meme Coin Trends

This week, the focus of the Meme coin market is on the official tokens TRUMP and MELANIA issued by Trump and Melania on Solana, which has led to a significant concentration of funds and attention on these two tokens, causing a substantial decline in other Meme coins, reflecting the high speculative nature and herd behavior in the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out the most, especially Solana, which benefited from the issuance of the TRUMP token, with the on-chain stablecoin supply reaching a historic high of $10.138 billion. At the same time, emerging public chains such as Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields, demonstrating strong potential for ecological development.

Future Market Outlook

Looking ahead to next week, the market will focus on important events such as the Federal Reserve FOMC meeting, the PCE price index, and earnings reports from tech stocks. The market is expected to maintain a volatile trend, but investors are generally optimistic about the opportunities that will arise as cryptocurrency policies gradually become clearer after February. The DeFi and AI sectors are expected to continue benefiting from improvements in fundamentals and policy support, while competition in the public chain ecosystem will further intensify.