Market Overview

This week, the cryptocurrency market has shown wide fluctuations, with the market sentiment index dropping from 35% last week to 10%, entering the extreme fear zone. 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 affected by the lack of timely cryptocurrency-related policies after Trump’s inauguration. Although Trump issued a bill regarding cryptocurrency on Thursday and the SEC repealed SAB-121, it did not significantly boost market sentiment, leading to most tokens declining more than the market, and the overall performance of Altcoins lagging behind the benchmark index.

DeFi Ecosystem Development

The DeFi sector has performed remarkably, with TVL increasing from $53.5 billion to $53.8 billion, a growth of 0.56%, showing positive growth for two consecutive weeks. This is mainly attributed 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 impressive performance in TVL, indicating that investors are beginning to refocus on the foundational 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 low market sentiment. In terms of projects, Virtuals Protocol, Swarms, and others continue to promote technological innovation, focusing on the layout of autonomous trading agents, multi-agent collaboration frameworks, and infrastructure construction, while the application of TEE technology and the emerging narrative of the agent economic system are gradually gaining attention.

Meme Coin Trends

This week, the focus of the Meme coin market is concentrated on the official tokens TRUMP and MELANIA issued by Trump and Melania on Solana, which has led to a significant influx of funds and attention towards these two tokens, causing a substantial decline in other Meme coins, highlighting the high speculative nature and trend-following characteristics of the Meme coin market.

Public Chain Performance Analysis

In the public chain ecosystem, Solana and Tron stand out the most, especially as Solana benefits from the issuance of the TRUMP token, with the on-chain stablecoin supply reaching a historical high of 10.138 billion USD. Meanwhile, emerging public chains such as Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields, demonstrating good potential for ecological development.

Future Market Outlook

Looking ahead to next week, the market will focus on important events such as the Federal Reserve’s FOMC meeting, the PCE price index, and earnings reports from tech stocks. The market is expected to maintain a fluctuating trend, but investors are generally optimistic about the opportunities arising from the gradual clarification of cryptocurrency policies 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 intensify further.