Crypto Market Weekly: Web3 Enters the Year of the AI Revolution

This week, the crypto market has shown wide fluctuations, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market cap of stablecoins continues to grow, indicating that institutional funds are still entering the market. The poor market sentiment is mainly affected by Trump's failure to timely introduce cryptocurrency policies after taking office. Although a related bill was issued on Thursday, it did not significantly boost the market. Most tokens have declined more than the overall market, and Altcoins are generally underperforming the benchmark index.

The DeFi sector has performed outstandingly, with TVL increasing by 0.56% to $53.8 billion. This is mainly attributed to the rise in the prices of underlying assets and project incentive measures, leading to a general increase in on-chain APY. Projects like Sumer.money and Meteora have shown impressive TVL performance, indicating that investors are refocusing on the fundamental yields of DeFi.

The AI sector has been influenced by Trump's $500 billion infrastructure plan, reaching a total market value of $41.9 billion, but has since pulled back. Virtuals Protocol, Swarms, and others continue to promote technological innovation, laying out independent trading agents and multi-agent collaboration frameworks. The application of TEE technology and emerging narratives like the agent economic system are gaining attention.

The focus of the Meme coin market is concentrated on the TRUMP and MELANIA tokens issued on Solana by Trump and Melania, leading to a significant decline in other Meme coins, indicating high speculation.

In the public chain ecosystem, Solana and Tron stand out. Solana benefits from the issuance of the TRUMP token, with on-chain stablecoin supply reaching an all-time high. Emerging public chains like Sonic, Core, and BSquared continue to innovate in the DeFi and AI fields.

Looking ahead to next week, the market will focus on the Federal Reserve's FOMC meeting, the PCE price index, and tech stock earnings reports. The market is expected to remain volatile, but investors are optimistic about the opportunities brought by clearer policies after February. DeFi and AI sectors are likely to benefit from improvements in fundamentals and policy support, and competition in the public chain ecosystem will further intensify.