Market Weekly Report

Market Overview

Main Market Trends

• The market sentiment index has dropped from 91% to 53%, remaining in the greed zone, but BTC is holding steady at a high level while other cryptocurrencies are generally under pressure, resulting in increasing market divergence.

• The market capitalization of USDT and USDC has both increased (+2.91% and +3.23% respectively), and the total TVL of DeFi has risen to 54.1 billion USD, indicating that the market continues to attract new funds.

• The DeFi sector leads the market with a weekly return rate of 16.47%, and DEX trading volume reaches a new high for 2024 (63 billion USD), demonstrating strong development momentum.

• Meme coins are back in the market spotlight, performing actively amidst market fluctuations, bringing new liquidity and user growth points.

• DEX projects have received the highest attention, while AI, GameFi, and other sectors have shown weak performance, reflecting a market trend shifting towards infrastructure and liquidity sectors.

• Investors are advised to remain cautious, pay attention to re-staking projects and opportunities in the DEX sector, and also consider the potential market fluctuations that may arise from next week's Federal Reserve interest rate meeting.

Market Sentiment Index Analysis

• The market sentiment index has dropped from 91% last week to 53%, still in the bullish range.

• The small cryptocurrencies performed worse than the benchmark index this week, showing a fluctuating downward trend. After a decline in the first half of the week, most cryptocurrencies failed to recover. Due to the impact of leveraged positions, approximately $2 billion in positions were forcibly liquidated in the market, leading to a significant deleveraging of long positions.

• Given the current market structure, it is expected that small-cap cryptocurrencies will closely follow the benchmark index in the short term, with a low probability of independent market movements.

Overview of the overall market trend

• The cryptocurrency market experienced wide fluctuations this week, with the sentiment index still in the bullish phase.

• DeFi projects have performed outstandingly, showing the market's continued attention to improving base yields.

• DEX projects performed well this week, indicating that on-chain investors are starting to engage actively.

• The meme track has returned to the spotlight and is beginning to attract market attention.

Hot Tracks

DEX

This week, due to significant overall price fluctuations in the market, many profit opportunities have been created for investors, and on-chain investors have been actively using DEX for trading, driving the growth of DEX projects.

DEX on-chain data

• TVL: The TVL of the DEX sector increased from 25.22B last week to 26.58B, a growth of 5.39%, with funds actively entering DEX projects.

• Trading Volume: The DEX trading volume reached $63 billion this week, setting a new high for 2024. The trading volume in the last 24 hours was $7.58 billion, with a surge in trading volume.

The DEX sector shows a trend of upgrading its business model. Leading protocols are transforming from a single trading function to a comprehensive financial infrastructure. By aggregating functions, vertical integration is achieved, creating a one-stop DeFi service ecosystem. This kind of architectural innovation signifies that the DEX track is evolving from a single trading level to an all-encompassing financial infrastructure, and the reconstruction of track value is underway.

SUI

The Sui ecosystem is generating a lot of discussion this week, with the SUI price rising by 7.8%, outperforming BTC and ETH. DeFi projects within the Sui ecosystem are showing excellent growth.

Sui chain DeFi project data

• TVL: Increased from 1.598B to 1.793B, a growth of 12.88%.

• Accounts: A total of 66,543,317, an increase of 2,184,755 from last week, a growth rate of 3.39%.

• DEX Trading Volume: The total DEX trading volume on the Sui chain has surpassed 35 billion USD, with an average daily trading volume of 466 million USD.

• DeFi project TVL growth: The top three, NAVI Protocol, Suilend, and Aftermath Finance, saw TVL growth rates of 1.14%, 17.22%, and 1.72% this week, respectively.

The SUI price is stronger than the market, driving the growth of APY for on-chain DeFi projects. At the same time, the overall market is highly volatile, presenting profit opportunities and attracting a large number of users to participate, promoting the development of the entire Sui ecosystem.

DeFi Track

TVL Growth Ranking

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

| Project Name | Last Seven Days 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): Recommendation Index ⭐️⭐️⭐️⭐️

• Project Introduction: A decentralized synthetic asset protocol based on Ethereum, allowing users to mint synthetic assets by collateralizing SNX tokens.

• Latest developments: Increase LP user APY, raising the V3 LP trading fee share from 40% to 60%. Acquire the leveraged token platform TLX, integrate its functions and launch an incentive plan.

Babylon ( Unissued Tokens ): Recommendation Level ⭐️⭐️⭐️⭐️⭐️

• Project Introduction: Enhance the security of other PoS blockchains using the security of Bitcoin, activating idle BTC assets through a trustless staking mechanism.

• Latest developments: BTC price remains strong, users are optimistic about future developments, and more are choosing BTC yield projects. Binance supports direct staking of BTC to Babylon from accounts, bringing in a large amount of new capital.

Usual Money (USUAL): Recommendation Index ⭐️⭐️⭐️

• Project Introduction: A stablecoin project supported by Binance, offering stablecoin USD0, bond products USD0++, and governance token USUAL.

• Latest Development: After the Checker upgrade, USD0++ holders achieved an annualized return of 48%, while the average APY for USD0/USD0++ and USD0/USDC exceeded 50%. At the same time, the minting volume of USUAL was reduced by 17%, attracting users to participate in high-yield arbitrage.

BounceBit (BB): Recommendation Index ⭐️⭐️⭐️⭐️

• Project Introduction: Bitcoin ecosystem re-staking base layer, in-depth cooperation with Binance to build high-yield CeDeFi components.

• Latest developments: Increased staking rates for various tokens, with USDT 30-day annualized reaching 54.25%. Collaboration with Ondo to introduce tokenized RWA.

Equilibria (EQB): Recommendation Index ⭐️⭐️⭐️

• Project Introduction: The Machine Gun Pool project uses Pendle's veToken to enhance the yield model.

• Latest developments: Strengthened cooperation with Curve, launched multiple new enhanced pools, with a maximum APY of 59%, attracting users to participate in arbitrage.

Overall performance of the track

• Stablecoin market capitalization growth: USDT increased by 2.91% to $145.1 billion, USDC increased by 3.23% to $41.5 billion, indicating continuous inflow of funds.

• Increased liquidity: The risk-free interest rate in traditional markets is declining, while the arbitrage rate of on-chain DeFi projects is rising, leading to a return of funds to DeFi.

• The TVL of DeFi projects increased from $53.2 billion to $54.1 billion, a growth of 1.69%, maintaining a continuous rise over the past two months.

In-depth Analysis

The core driving factors of this round of increase:

• Market Environment: Bull market cycle brings an overall increase in liquidity demand
• Interest Rate Side: The base lending rate has been raised, reflecting the market's expectations for the pricing of funds.
• Yield side: The yield rate of the arbitrage strategy has expanded, and the endogenous yield of the protocol has significantly improved.

This conduction mechanism strengthens the intrinsic value support within the DeFi sector, creating a virtuous growth momentum.

Performance in Other Tracks

public chain

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

| Project Name | Last Seven Days Increase | 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

This week, the open interest reached $3.5 billion, surpassing DYDX to become the largest Perp DEX. After launching the popular project ME, trading volume rapidly expanded.

Sui

Move is a leading player receiving widespread attention from the market. It has established partnerships with Backpack and Phantom wallets. The on-chain Meme coin KAPI is gaining popularity, attracting traffic and funds to the ecosystem. The daily trading volume of the on-chain DEX has surpassed $466 million.

Algorand

On-chain Meme coin MONKO is heating up. It announces strong support for RWA track projects. The stablecoins under its umbrella, USDCa and EURD, comply with MiCA standards and can continue to serve European users.

PulseChain

On-chain Meme projects are active, bringing a certain wealth effect. The maximum DEX-PulseX trading volume increased by 62% this week. There are rumors in the market that PLS will be listed on Binance, allowing users to enter the ecosystem and earn PLS.

Bitcoin

BTC has performed well, with a small decline and has returned to historical highs. Users are optimistic about future increases and are depositing BTC assets into the BTCFi project to earn returns, driving up Bitcoin's TVL.

Overview of the Rise List

The top 5 tokens by market gains in the past week ( excluding tokens with low trading volume and meme coins ):

| Token | Project Name | 7-Day 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% |

USUAL

After the Checker upgrade, USD0++ holders can achieve an annualized yield of 48%, with average APY exceeding 50% for USD0/USD0++ and USD0/USDC. At the same time, the USUAL minting volume is reduced by 17%, attracting users to participate in high-yield arbitrage.

BGB

Continuously launching popular tokens, especially Meme tokens, attracting users and capital. The trading volume surpassed OKX, becoming the third largest exchange. The CEO announced consideration of returning to the US market.

SUSHI

Launched Dojo Agent and Tweet Token features, supporting the tokenization of tweets or the creation of Meme coins, leading to a significant increase in trading volume. Proposed a diversified funding strategy to optimize asset allocation.

ORCA

In-depth cooperation with Binance on multiple businesses. Launching a no-code Token creation tool that supports Solana and Eclipse networks. Collaborating with HawkFi and NATIX Network to enhance the DeFi experience.

ACX

Achieved important cooperation with Binance, launching multiple trading sectors. Collaborated with HTX Global and Bitvavo exchanges, and partnered with Yodl to provide cross-chain payment services. Continued to deepen cooperation with Uniswap.

Meme Token Surge Ranking

| Token | Project Name | Weekly Gain | Circulating Market Capitalization | 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's spotlight, performing well amid market fluctuations, creating on-chain wealth effects, and attracting more users to participate.

Social Media Hot Topics

This week, the DEX projects with the highest social media attention are (12.7-12.13), showing a general upward trend and performing better than other sectors. The market fluctuations have created trading opportunities, and on-chain users are actively participating, driving the growth of DEX trading volume.

Overall Overview of Market Themes

According to weekly return rate statistics, the DeFi sector performed the best, while the AI sector performed the worst.

• DeFi sector: LINK, UNI, and AAVE have the largest shares, rising by 13.71%, 19.92%, and 42.85% respectively, leading the entire sector's growth. Market volatility brings arbitrage opportunities, driving the performance of DeFi projects.

• AI track