Crypto Market Weekly: Web3 Leads a New Chapter in the AI Revolution

This week, the crypto market has shown a wide fluctuation trend, with the market sentiment index dropping to 10%, entering the extreme fear zone. The market capitalization of stablecoins continues to grow, indicating that institutional funds are still entering the market. The low market sentiment is mainly affected by the delayed introduction of relevant policies following Trump's inauguration. Although a cryptocurrency bill was issued on Thursday, it failed to significantly boost the market.

The DeFi sector performed outstandingly, with TVL increasing by 0.56% to $53.8 billion. Benefiting from rising asset prices and project incentive measures, on-chain yields have generally improved. Projects like Sumer.money and Meteora have seen significant TVL growth, indicating that investors are paying renewed attention to the basic yields of DeFi.

The AI sector was boosted by Trump's $500 billion infrastructure plan but then retraced. Virtuals Protocol, Swarms, and others continue to promote technological innovation, focusing on autonomous trading agents and multi-agent collaboration. At the same time, the application of TEE technology and emerging narratives such as the Agent economic system are gaining attention.

The focus of the Meme coin market is on the Trump couple's Solana tokens TRUMP and MELANIA, leading to a significant drop in other Meme coins, highlighting the highly speculative nature of this market.

In the public chain ecosystem, Solana and Tron stand out. Solana benefits from the issuance of TRUMP tokens, 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 sectors.

Looking ahead to next week, the market will focus on the Federal Reserve meeting, PCE 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. The DeFi and AI sectors are expected to benefit from improved fundamentals and policy support, while competition among public chains will further intensify.