The AI Track Continues to Lead the Market | Crypto Market Weekly Report

Market Overview

This week, the crypto market showed an upward trend, with the sentiment index rising from 10% to 19%. Although it is still in the panic zone, there are signs of warming. Despite the impact of the New Year holiday not fully dissipating, funds have started to flow back into the crypto market. Overall, Altcoin performance is stronger than the market, but it is expected to move in sync with the market in the short term.

The total locked value of DeFi projects is ( TVL, which has increased by 0.95% to 53.2 billion USD, ending two consecutive weeks of decline. The performance of gun pools and prepaid DEX projects has been outstanding, primarily benefiting from the yield increase brought about by the rise in base interest rates, as well as the increase in contract trading demand due to decreased liquidity during the holiday period.

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The AI Agent sector continues to maintain a hot position in the market, with a market size reaching $12.2 billion and a week-on-week growth of nearly 12%. The market focus is gradually shifting from AI Meme to AI infrastructure construction projects, among which the self-issued tokens of AI Agents have become a focal area, with related infrastructure projects like Phala Network performing remarkably.

This week, the Meme coin market is mainly focused on AI-related projects, benefiting from the wealth effect brought by AI Agents issuing coins independently, resulting in significant gains for AI Meme projects. This reflects that market funds are chasing the AI concept, but it also shows an increase in speculative characteristics.

Public chain projects performed well in this week's market rebound, mainly due to the increase in on-chain DeFi project yields and the demand for AI project development. Public chains supporting AI development, such as Solana and zkSync Era, have shown outstanding performance, indicating that public chains are evolving towards AI infrastructure.

Hot Track Analysis

) AI Agent

The AI Agent track continues to be the focus of market attention, primarily driven by the issuance of tokens by AI Agent itself. Some Meme coins issued through Virtuals and ai16z have seen significant increases, creating a wealth effect that attracts investor interest. The market focus has shifted from AI Meme to AI infrastructure projects, such as the ai16z asset issuance platform and Phala Network.

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) DeFi

The gun pool and prepaid DEX projects performed outstandingly. The yield increase of the gun pool project is mainly due to the rise in the market's base interest rate. The prepaid DEX project benefits from the increased demand for contract trading caused by the decline in liquidity during the holiday.

Projects worth paying attention to include:

• Resolv: Successfully launched a new type of liquidity pool, completed cross-chain on the Base network, and reached cooperation with multiple well-known projects.
• Bluefin: Completed Sui Bridge integration, optimized payment system, launched high-yield liquidity mining project.
• StakeStone: Launched the multi-chain Berachain Vault, achieving cross-chain functionality and collaborating with multiple strategic partners to expand the ecosystem.
• Hyperliquid: The mainnet has launched the staking feature, adding support for leveraged trading of AI-related tokens, attracting a large number of users to participate.

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Performance of Public Chains

The better-performing public chains include:

• Zircuit: Collaborating with multiple AI and DeFi projects, planning to launch brand updates and new features.
• Hyperliquid: Launched staking feature, added support for AI token leveraged trading.
• TON: Develop BTC bridging solutions and collaborate with multiple projects to expand the ecosystem.
• zkSync Era: Announces 2025 strategic positioning, emphasizing the development of ZK technology.
• Solana: Launched AI development toolkit, multiple GameFi projects announced to increase their development efforts on Solana.

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Market Hot Tokens

The top five in the growth rankings are all AI-related projects:

1. AI16Z: Released an important version update, with a market value exceeding $2 billion.
2. ATA: Bringing TEE technology on-chain, joining the Optimism ecosystem.
3. GRIFFAIN: Launches the SAIMP open standard protocol and proposes the "@ Store" concept.
4. VIRTUAL: The usage of the GAME framework has increased significantly, and protocol revenue has improved remarkably.
5. PHA: Release TEE x AI technology report, adjust network architecture.

![AI Track Ignites 2025 | Frontier Lab crypto market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-18832731dc49c5eccc0d544f8b7ad642.webp(

Future Market Outlook

Next week's release of U.S. employment data may impact the Federal Reserve's interest rate cut decisions, expected to bring market volatility. With the end of the holidays, institutional investors are returning, and market liquidity is expected to recover. Recommendations for investors:

1. Maintain a defensive allocation and increase the proportion of top assets such as BTC and ETH.
2. You can moderately participate in high-yield liquidity pools and prepaid DEX projects.
3. Focus on the development of AI infrastructure projects.
4. Strictly control positions and manage risks.

![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-d38d5310fde0d90b0e5ba2e7aa017489.webp(

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![AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-22934a68e94fd0cab04b103c732be69f.webp(

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