Market Overview

Main Market Trends

• The market sentiment index has dropped from 91% to 53%. Although it remains in the greed zone, BTC is maintaining high-level fluctuations while altcoins are generally under pressure, indicating a deepening market divergence.

• The market capitalization of USDT and USDC both increased (by +2.91% and +3.23% respectively), and the total TVL in DeFi continues to rise to $54.1 billion, indicating that the market as a whole is still attracting new funds.

• The DeFi sector leads the market with a weekly return rate of 16.47%, while a certain exchange has achieved a new high in trading volume for 2024 (63 billion USD), demonstrating strong development momentum.

• The meme coin market has returned to the market spotlight, performing actively amidst market fluctuations, bringing new liquidity and user growth points to the market.

• Decentralized exchange projects are receiving the highest attention, while AI and gaming sectors are underperforming, reflecting that market hotspots are concentrating on infrastructure and liquidity sectors.

• Investors are advised to remain cautious, focusing on opportunities in re-staking projects and decentralized exchange sectors, while closely monitoring the potential market fluctuations that may arise from next week's Federal Reserve meeting.

Market Sentiment Index Analysis

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

• Altcoins performed worse than the benchmark index this week, showing a volatile downward trend. After a decline in the first half of the week, most assets failed to recover lost ground. Due to leveraged positions, the market experienced about $2 billion in forced liquidations, with significant deleveraging in long positions. Given the current market structure, it is expected that altcoins will align with the benchmark index in the short term, with a low probability of independent market movements.

Overview of Overall Market Trends

• The cryptocurrency market has been in a wide-ranging fluctuation trend this week, with the sentiment index still in a bullish phase.

• Decentralized finance related crypto projects have performed outstandingly, showing the market's continued attention to improving basic yields.

• Projects related to decentralized exchanges performed well this week, indicating that on-chain investors are beginning to actively participate in on-chain investment activities.

• This week, the Meme track has returned to the spotlight and started to attract market attention.

Hot Tracks

Decentralized Exchange

This week, due to significant fluctuations in the overall market prices, many profit opportunities have been created for investors. On-chain investors are increasingly using decentralized exchanges for trading. As on-chain funds and users continue to enter this space, it has driven the growth trend of related projects this week.

on-chain data of decentralized exchanges

The most intuitive data to observe for decentralized exchanges is TVL and trading volume, as these two indicators can directly reflect the state of this sector.

• TVL: The TVL of related projects has risen rapidly this week, increasing from last week's 25.22B to the current 26.58B, a growth rate of 5.39%. This indicates that funds are actively entering related projects.

• Weekly Trading Volume: This week's trading volume reached the highest level since mid-2024, reaching a level of $63 billion, with a trading volume of $7.58 billion in the last 24 hours, indicating a surge in trading volume in this sector.

This sector shows a clear trend of business model upgrades. Projects represented by certain leading protocols are undergoing a strategic transformation from single trading functions to 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 financial service ecosystem. Such architectural innovations signify that this track is evolving from a single trading level to a comprehensive financial infrastructure direction, with the reconstruction of track value underway.

SUI

The Sui ecosystem has been highly discussed in the market this week, with the SUI price rising by 7.8%, outperforming BTC and ETH. The decentralized finance projects within the Sui ecosystem have shown remarkable growth this week.

Data on decentralized finance projects on the Sui chain

• TVL: Sui's TVL has risen rapidly this week, increasing from last week's 1.598b to the current 1.793b, a growth rate of 12.88%. It is evident that on-chain funds are actively entering the Sui chain.

• Accounts: The total number of users on the Sui chain has reached 66,543,317, an increase of 2,184,755 from last week's 64,358,562, representing a growth rate of 3.39%. Although the growth rate may not seem significant, the ability to achieve growth amid the severe fluctuations in the market this week indicates that the Sui chain has a certain capacity to attract traffic.

• Exchange Trading Volume: The main exchanges on the Sui chain are: Cetus, Aftermath Finance, and BlueMove DEX. This week, the total trading volume on the Sui chain exceeded $35 billion, with an average daily trading volume of $466 million, indicating that the exchanges on the Sui chain are very active.

• DeFi project TVL increment: The top three projects by TVL in the Sui ecosystem are NAVI Protocol, Suilend, and Aftermath Finance, which belong to the lending and exchange sectors. This week, their TVL growth rates are 1.14%, 17.22%, and 1.72%, respectively. It can be seen that although there is a fluctuating trend, funds in the Sui ecosystem are continuously entering projects in the decentralized finance sector.

To determine whether a public chain is favored by the market, the most direct criterion is the increase or decrease in its TVL. Based on the above data, we can see that the Sui chain is maintaining rapid development at this stage. Due to the strength of the SUI price compared to the overall market, the underlying assets of the Sui ecosystem are continuously rising, which in turn drives the growth of the APY of its on-chain decentralized finance projects. Additionally, there are significant fluctuations in the overall market conditions, creating profit opportunities, which has attracted a large number of on-chain users to participate and promoted the development of the entire Sui ecosystem.

Decentralized Finance Track

TVL Growth Ranking

The top 5 projects by TVL growth in the market over the past week (excluding projects with a TVL below $30 million):

| 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): (Recommended Rating: ⭐️⭐️⭐️⭐️)

• Project Introduction: Synthetix is a decentralized synthetic asset protocol built on Ethereum, aimed at providing on-chain exposure to real-world assets through blockchain technology. The core functionality of Synthetix includes allowing users to mint synthetic assets by collateralizing their SNX tokens.

• Latest developments: This week, Synthetix increased the APY for LP users by implementing SCCP-373, raising the share of trading fees for V3 LP from 40% to 60%. At the same time, Synthetix Treasury intends to charge some integrator fees to boost revenue for V3 LP. Additionally, Synthetix announced this week the completion of its acquisition of the leveraged token platform TLX, aiming to integrate TLX's leveraged token features by improving parameters and redeploying contracts, while also launching a leveraged token incentive program.

Babylon (Unissued): (Recommendation Index: ⭐️⭐️⭐️⭐️⭐️)

• Project Introduction: The Babylon project is an initiative aimed at enhancing the security of other proof-of-stake blockchains by leveraging the security of Bitcoin. The core idea is to activate idle Bitcoin assets through a trustless staking mechanism, addressing the conflict between Bitcoin holders' pursuit of asset security and participation in high-yield projects.

• Latest Developments: Although market prices have fluctuated significantly this week, BTC has performed very strongly, remaining at a high level. Additionally, users are generally optimistic about BTC's future development, which has led to a more determined holding of BTC while wanting to unlock the liquidity of their holdings, thus opting for more BTC-based yield projects. Furthermore, this week, a trading platform announced that users can directly stake BTC from their accounts to earn returns on Babylon, bringing a substantial influx of new funds to Babylon. During the promotional period, users participating in the event can receive up to a 12% points boost, incentivizing a large number of users to participate.

Usual Money (USUAL): (Recommended Index: ⭐️⭐️⭐️)

• Project Introduction: Usual Money is a stablecoin project supported by a certain trading platform, aiming to provide a new stablecoin solution through a decentralized approach. The core mechanism of the project includes three main tokens: the stablecoin USD0, the bond product USD0++, and the governance token USUAL.

• Latest developments: Recently, Usual Money underwent a Checker upgrade. After the upgrade, the annualized yield for holders of the bond product USD0++ reached 48%, with an average APY of 54% for USD0/USD0++ in Curve, and an average annualized return of 52% for USD0/USDC. At the same time, the minting volume of USUAL was reduced by 17%, which increased the price of USUAL. This has attracted many users to participate in Usual Money to obtain high annual arbitrage returns.

BounceBit (BB): (Recommended Index: ⭐️⭐️⭐️⭐️)

• Project Introduction: BounceBit is a re-staking foundational layer in the Bitcoin ecosystem. By design, it collaborates deeply with a certain trading platform to structure high-yield CeDeFi components; additionally, it builds the BounceBit Chain itself to create specific use cases for Restaking.

• Latest Developments: Recently, BounceBit has increased the staking rates for various tokens, with a 30-day annualized yield of 54.25% for USDT, 24.55% for BTC, 37.13% for BNB, and 37.7% for ETH, attracting a large number of users to invest their assets in BounceBit for staking. At the same time, this week BounceBit has partnered with Ondo to introduce tokenized RWA into BounceBit, beginning its foray into the RWA track.

Equilibria (EQB): (Recommended Index: ⭐️⭐️⭐️)

• Project Introduction: Equilibria is a liquidity pool project aimed at generating high returns for users. It utilizes the veToken model adopted by Pendle to enhance yield, providing higher returns to LPs through the tokenized version of vePENDLE, ePENDLE, and offering additional rewards to PENDLE holders.

• Latest Development: This week, Equilibria strengthened its collaboration with Curve, launching the first enhanced pool - scrvUSD pool, aimed at increasing user yields. Subsequently, new enhanced pools for SolvBTC, cmETH, and ePENDLE were added, raising users' APY to a maximum of 59%, thereby attracting a large number of users to participate in arbitrage.

In summary, we can see that the projects with rapid TVL growth this week are mainly concentrated in the stablecoin yield sector (machine gun pool).

Overall Performance of the Track

• Stablecoin market capitalization steadily grows: USDT increased from $141 billion last week to $145.1 billion, a growth of 2.91%, while USDC rose from $40.2 billion to $41.5 billion, marking a growth of 3.23%. It can be seen that this week both USDT, which is mainly in non-US markets, and USDC, which is primarily in the US market, have experienced growth, indicating that the entire market continues to see sustained capital inflow.

• Increasing liquidity: The risk-free arbitrage rates in traditional markets are continuously declining with the ongoing rate cuts, while the arbitrage rates of on-chain decentralized finance projects are steadily increasing due to the rising value of cryptocurrency assets. Returning to decentralized finance will be a very good choice.

• Financial Situation: The TVL of decentralized finance projects has increased from 53.2 billion USD last week to 54.1 billion USD now, with new funds reaching 1.69%. This week continues to maintain positive growth and has sustained an upward trend for nearly two months, proving that there is a continuous inflow of funds into related projects.

In-depth Analysis

Upward driving force: