Market panic intensifies, Decentralized Finance and AI Agent sectors are being followed

Market Overview

Main Market Trends

The current market is in a state of extreme panic, with the sentiment index dropping from 53% to 7%. The hawkish stance of the Federal Reserve has led to about $1 billion in forced liquidations, and the market is undergoing a significant deleveraging process.

The DeFi sector has seen its first negative growth in TVL in nearly two months ( -2.21% ), but the market value of stablecoins continues to grow ( USDT +0.55%, USDC +1.44% ), indicating that foundational liquidity is still flowing in, and projects like money gun pools are in high demand.

The market size of the AI Agent track has reached $9.9 billion, with the investment focus shifting from speculative AI Meme coins to infrastructure construction, indicating that the market is gradually maturing.

The popularity of the Meme coin market has clearly cooled down, with large-scale capital withdrawals, and investors are more inclined to look for projects with practical application value.

The public chain sector has shown strong resilience during market fluctuations, becoming the preferred choice for risk aversion, reflecting the market's solid confidence in infrastructure.

As the Christmas holidays approach, market liquidity is expected to decline. It is recommended to adopt a defensive allocation strategy, focusing on BTC and ETH, following stable returns from DeFi and AI infrastructure projects, and being alert to holiday volatility risks.

Market Sentiment Index Analysis

The market sentiment index has fallen from 53% last week to 7%, indicating a state of extreme fear. Altcoins have performed worse than the benchmark index this week, showing a significant downtrend. Due to leveraged positions, the market has seen over $1 billion in forced liquidations, with long positions significantly deleveraging. 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 cryptocurrency market has been in a downward trend this week, with the sentiment index in a state of extreme fear. DeFi-related projects have performed prominently, indicating that the market continues to follow aspects of enhancing base yields. The AI Agent sector has seen high public sentiment this week, showing that investors are actively searching for the next market breakout point. Meme sector projects have generally declined, with funds beginning to withdraw, reflecting a gradual decrease in market enthusiasm.

Hot Tracks

AI Agent

This week, the AI Agent track has the highest discussion level, with market focus shifting from AI Meme tokens to infrastructure development. The AI Agent track may lead the next stage of market development, as it encompasses multiple areas such as AI DePIN, AI Platform, AI Rollup, and AI infra, which can integrate well with blockchain smart contracts.

Decentralized Finance赛道

TVL Growth Ranking

In the past week, the top 5 projects with TVL growth in the market, with projects above 30 million USD: (.

1. VaultCraft: 5344.32%
2. Hyperliquid: 183.98%
3. Resolv: 77.31%
4. Babylon: 64.43%
5. DAO List: 48.52%

This week's projects with rapid TVL growth are mainly concentrated in the stablecoin yield sector ) liquidity pools (.

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)# Overall performance of the track

Stablecoin market cap steadily increasing: USDT up 0.55%, USDC up 1.44%, indicating continuous inflow of funds.

The TVL of DeFi projects fell from $54.1 billion to $52.9 billion, a negative growth of 2.21%. This is the first negative growth in the past two months, mainly due to market downturns leading to liquidations.

Other track performance

Public Chain

The top 5 public chain TVL growths in the past week:

1. Hyperliquid: 183.98%
2. Bitcoin: 44.94%
3. BSC: 2.71%
4. AILayer: 2.02%
5. Mantle: 0.75%

Overview of the Rise List

Top 5 tokens with the highest growth in the market over the past week:

1. UXLINK: 107.18%
2. USUAL: 74.72%
3. MOCA: 72.37%
4. HYPE: 52.43%
5. VELO: 47.49%

This week's increase list shows a concentrated sector characteristic, with most of the rising tokens belonging to the public chain track.

Meme Token Price Increase Ranking

1. FARTCOIN: 96.66%
2. AIXBT: 18.83%
3. CHEEMS: 8.58%

This week, Meme projects have been greatly affected by the market downturn, clearly indicating that the current market attention and funds are not focused on the Meme coin sector.

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) social media hot topic

This week, the most followed project on social media is the L1s project. While the market is experiencing a general decline, various public chains are performing well, and apart from buying BTC and ETH for hedging, most of the funds are invested in various public chains.

Market Topic Overview

According to weekly return rate statistics, the CeFi track performed the best, while the GameFi track performed the worst.

Outlook for Next Week

macroeconomic factors analysis

• Next week, the United States will enter the Christmas holiday, with little macro data to be released.
• In previous holiday periods, the market dominated by purchases from the United States would experience a decrease in purchasing power and increased market volatility.

sector rotation trend

• Decentralized Finance track: Investors participate in machine gun pool projects to increase token holding returns.
• AI Sector: AI Agent track continues to be followed, Web2 and Web3 ecosystems are accelerating integration.

Investment Strategy Recommendations

• Maintain a defensive allocation, increase BTC and ETH allocation, enhance hedging properties.
• You can participate in high-yield machine gun pool Decentralized Finance projects to hedge risks.
• It is advisable to remain cautious, strictly control positions, and manage risks properly.

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