Crypto Market Weekly Report: DeFi Sector Valuation Restructuring, Zone Rotation Apparent

Market Overview

The main trend of the market

• The market sentiment index has decreased from 91% to 53%, still within the greed zone, but BTC maintains high volatility while altcoins are generally under pressure, indicating an intensification of market differentiation.
• Both USDT and USDC have seen market cap growth of +2.91% and +3.23% respectively, with a total DeFi TVL continuously rising to $54.1 billion, indicating that the market is continuously attracting new funds.
• The Decentralized Finance zone leads the market with a weekly return rate of 16.47%, DEX trading volume reached a new high in 2024 of 630 billion, showcasing strong development momentum.
• The Meme coin market has returned to the spotlight, performing actively amidst market fluctuations, bringing new liquidity and user growth points to the market.
• DEX projects receive the highest attention, while AI, GameFi and other zones perform poorly, reflecting the market focus shifting towards infrastructure and liquidity zones.
• Investors are advised to remain cautious, focusing on opportunities in re-staking projects and the DEX zone, while closely monitoring the market fluctuations that may arise from next week's Federal Reserve interest rate meeting.

( Market Sentiment Index Analysis

• The market sentiment index has fallen from 91% last week to 53%, still within the bullish zone.
• The performance of altcoins this week lagged behind the benchmark index, showing a fluctuating downward trend. Due to leveraged positions, the market saw about $2 billion in forced liquidations, with a significant deleveraging of long positions. It is expected that altcoins will remain in sync with the benchmark index in the short term, with a low probability of independent market movements.

) Overview of the overall market trend

• The crypto market has been in a wide-ranging fluctuation trend this week, and the sentiment index remains in the bullish phase.
• Decentralized Finance related projects performed outstandingly, showing the market's continued focus on improving basic yields.
• DEX projects performed well, showing that on-chain investors are beginning to actively participate in on-chain investment activities.
• The Meme zone is back in the spotlight and has begun to attract market attention.

Hot Zone

DEX

This week, due to the overall price volatility in the market, many profit opportunities were created for investors. On-chain investors are actively using DEX for trading, driving the growth of DEX projects.

On-chain data of DEX:

• TVL: increased from last week's 25.22B to the current 26.58B, with a growth of 5.39%, as funds actively flow into DEX projects.
• Weekly trading volume: Reached a peak of 63 billion USD in 2024, with a trading volume of 7.58 billion USD in the last 24 hours, a surge in trading volume.

The DEX zone is showing a clear trend of upgrading its business model. Leading protocols represented by Hyperliquid and dYdX are transitioning from a single trading function to a comprehensive financial infrastructure. This evolution is reflected in: protocols based on their own chain layer architecture, achieving vertical integration through functional aggregation, creating a one-stop Decentralized Finance service ecosystem. Such architectural innovation marks the transition of the DEX race from a single trading level to an all-encompassing financial infrastructure, and the reconstruction of the race's value is underway.

SUI

The Sui ecosystem has garnered a lot of discussion this week, with the SUI price rising by 7.8%, outperforming BTC and ETH, and the growth of DeFi projects in the ecosystem has been outstanding.

Sui chain Decentralized Finance project data:

• TVL: Increased from 1.598B last week to 1.793B, a growth of 12.88%.
• Accounts: A total of 66,543,317, an increase of 2,184,755 from last week, ( 3.39% ).
• DEX trading volume: Major DEX ### Cetus, Aftermath Finance, and BlueMove DEX ### total trading volume exceeds 35 billion USD, with an average daily volume of 466 million USD.
• Decentralized Finance项目TVL增长:排名前三的NAVI Protocol、Suilend和Aftermath Finance TVL增速分别为1.14%、17.22%和1.72%。

The Sui chain continues to develop rapidly, with the SUI price outperforming the market, driving the growth of APY in on-chain DeFi projects. Coupled with significant overall market volatility presenting profit opportunities, this has attracted a large number of users to participate, promoting the development of the entire Sui ecosystem.

Decentralized Finance zone

( TVL growth ranking

The top 5 projects by TVL growth in the market over the past week ) TVL > 30 million USD (:

| Project Name | 7-Day Increase | TVL)million### | |---------|----------|--------------| | Synthetix | 87.69% | 576.82 | | Babylon | 67.32% | 3782.36 |
| Usual Money | 53.61% | 833.76 | | BounceBit | 50.31% | 664.98 | | Equilibria | 40.27% | 281.03 |

Synthetix(SNX):

• Project Introduction: A decentralized synthetic asset protocol based on Ethereum, providing on-chain exposure to real-world assets.
• Latest developments: Increase LP users' APY, complete the acquisition of the leveraged token platform TLX, and launch the leveraged token incentive program.

Babylon( not issued coins):

• Project Introduction: Enhance the security of other PoS blockchains using the security of Bitcoin, activating idle Bitcoin assets through a trustless staking mechanism.
• Latest developments: Benefiting from the high level of BTC maintenance and users optimistic about the future market, Binance supports earning returns by directly staking BTC from accounts.

Usual Money(USUAL):

• Project Introduction: A decentralized stablecoin project supported by Binance, including the stablecoin USD0, bond product USD0++, and governance token USUAL.
• Latest Development: After the Checker upgrade, the annualized yield of bond products reaches 48%, attracting users to participate in high-yield arbitrage.

BounceBit(BB):

• Project Introduction: Bitcoin ecological re-staking basic layer, in-depth cooperation with Binance to construct CeDeFi components.
• Latest developments: Increase the staking interest rates of various tokens and collaborate with Ondo to introduce tokenized RWA.

Equilibria(EQB):

• Project Introduction: The Gatling Pool project utilizes Pendle's veToken model to provide high yields for LPs.
• Latest development: Strengthened cooperation with Curve to launch an enhanced pool, increasing user APY to a maximum of 59%.

This week, the projects with rapid TVL growth are mainly concentrated in the stablecoin yield zone ( machine gun pool ).

( zone overall performance

• The market capitalization of stablecoins is steadily increasing: USDT increased by 2.91% to $145.1 billion, and USDC increased by 3.23% to $41.5 billion, indicating that market funds continue to enter.
• Liquidity is gradually increasing: Traditional risk-free arbitrage rates are declining, while the arbitrage rates of on-chain Decentralized Finance projects are increasing, making a return to DeFi a good choice.
• Fund situation: The TVL of DeFi projects rose from 53.2 billion USD to 54.1 billion USD, an increase of 1.69%, maintaining a continuous upward trend for nearly two months.

) in-depth analysis

The core driving factors of this round of increase:

1. Market Environment: The bull market cycle brings an overall increase in liquidity demand.
2. Interest Rate Side: The base lending rate has risen, reflecting the market's expectations for capital pricing.
3. Revenue side: The yield of the circular arbitrage strategy has expanded, and the protocol's endogenous income has significantly improved.

This transmission mechanism reinforces the intrinsic value support within the Decentralized Finance zone, forming a positive growth momentum.

Performance in Other Zones

public chain

The top 5 public chain TVL increases in the market over the past week:

| Project Name | Last 7 Days Growth | TVL###million( | |---------|----------|--------------| | Hyperliquid | 21.23% | 2606.34 | | Sui | 14.45% | 1870.36 | | Algorand | 10.99% | 201.15 | | PulseChain | 7.33% | 953.99 | | Bitcoin | 6.99% | 4854.36 |

Hyperliquid: Unsettled contracts reached $3.5 billion, surpassing DYDX to become the largest Perp DEX on-chain, and trading volume rapidly expanded after the launch of the ME project.

Sui: Movement of the token drives the rise of the Move system, collaborating with Backpack and Phantom wallets, the on-chain Meme coin KAPI is hot, with daily trading volume on DEX exceeding $466 million.

Algorand: The on-chain meme coin MONKO is gaining high popularity, strongly supporting the RWA zone, and the stablecoins USDCa and EURD comply with MiCA standards.

PulseChain: On-chain Meme coins are active, DEX PulseX trading volume has increased by 62%, and there are market rumors that PLS will be listed on Binance.

Bitcoin: Performing well, users are optimistic about the future market, and more BTC is being invested into BTCFi projects to earn additional returns.

) Overview of the Gainers List

The top 5 tokens with the highest price increase in the past week ### excluding tokens with too small trading volumes and meme coins (:

| Token | Project Name | Weekly Change | Circulating Market Cap | Circulation Rate | |-----|---------|----------|---------|-------| | USUAL | Usual | 98.57% | $257,540,796 | 8.37% | | BGB | Bitget | 95.01% | $4,816,158,400 | 69.99% | | SUSHI | Sushi | 65.77% | $473,147,704 | 69.06% | | ORCA | ORCA | 48.16% | $299,415,167 | 53.27% | | ACX | Across Protocol | 45.88% | $382,450,514 | 44.39% |

This week's rise in the rankings shows a characteristic of zone concentration, with most of the rising tokens belonging to the public chain track.

USUAL: After the Checker upgrade, the annualized yield of bond products reaches 48%, attracting users to participate in high-yield arbitrage.

BGB: Launched popular tokens, especially Meme coins, with trading volume exceeding OKX. The CEO announced consideration of returning to the US market.

SUSHI: Launch of Dojo Agent and Tweet Token features, DAO proposes a diversified funding strategy.

ORCA: Strengthening cooperation with Binance to launch a new Token creation tool, supporting the Solana AI Hackathon.

ACX: Reached an important cooperation with Binance, launched on multiple Binance platforms, and collaborated with HTX Global and Bitvavo.

) Meme Token Growth Rankings

| Token | Project Name | Weekly Growth Rate | Circulating Market Cap | Associated Public Chain | |-----|---------|----------|---------|--------| | FARTCOIN | Fartcoin | 187.53% | $507,074,756 | Solana | | BABYDOGE | Baby Doge Coin | 117.03% | $861,228,822 | BSC | | WOLF | LandWolf | 74.42% | $235,865,534 | Ethereum | | TURBO | Turbo | 52.45% | $879,341,386 | Ethereum | | DOG | DOG•GO•TO•THE•MOON ###Runes( | 40.57% | $957,481,330 | Bitcoin |

This week, Meme projects have returned to the market spotlight, performing well and creating on-chain wealth effects, attracting more users to participate.

) social media hotspot

This week's statistics show that DEX is the most frequently occurring theme from 12.7 to 12.13###. The listed tokens are as follows: ( does not include tokens with too small trading volumes and meme coins ):

| Token | Market Cap ### billion ( | FDV ) billion ( | Circulation Rate | Weekly Change Rate | |-----|---------|--------|-------|---------| | UNI | 112.8657 | 187.9582 | 60.04% | 19.92% | | SUSHI | 4.4686 | 6.4703 | 69.06% | 56.87% | | RAY | 15.9033 | 30.3401 | 52.42% | 6.83% | | CRO | 51.0851 | 56.4775 | 90.45% | -12.36% | | HYPE | 60.8653 | 182.2691 | 33.39% | 36.98% | | AERO | 16.1813 | 32.0813 | 50.43% | 18.65% | | JOE | 2.0533 | 2.7218 | 75.43% | 1.23% | | CRV | 13.6694 | 24.0634 | 56.81% | 3.26% | | INJ | 29.1079 | 29.7848 | 97.72% | -13.32% | | IDEX | 0.6681 | 0.7399 | 90.29% | 16.35% | | SNX | 10.7003 | 10.7137 | 99.99% | 6.27% |

DEX projects generally show an upward trend, performing better than other zones. Market fluctuations create trading opportunities, with on-chain users actively participating, leading to an increase in trading volume for various DEX.

![DeFi valuation reconstruction, zone rotation evident｜Frontier Lab crypto market weekly report])https://img-cdn.gateio.im/webp-social/moments-88728426a72772ae8fbf3803502d9a48.webp(

) Overall Overview of Market Themes

| zone |