Crypto Assets market rebounds, Decentralized Finance and AI lead the trend

Recently, the Crypto Assets market has shown a significant warming trend, with the market sentiment index rising from 11% to 35%. Although it is still in the panic zone, there has been a notable improvement. The market capitalization of stablecoins continues to grow, with USDT reaching 137.4 billion and USDC reaching 46.5 billion, indicating that institutional funds are still entering the market. The market rebound is mainly driven by two factors: US CPI data meeting expectations and an optimistic outlook on regulatory easing. Altcoins have overall outperformed the market, especially the notable increases in DeFi and AI-related tokens, showing that funds are beginning to shift from Bitcoin to small-cap tokens.

Decentralized Finance生态发展

The TVL of the DeFi sector has increased slightly to 53.5 billion USD, a month-on-month growth of about 1%. It is worth noting that DeFAI, as a product of the combination of Decentralized Finance and AI, saw its market value surge from 600 million USD to 3.2 billion USD within a week, demonstrating the market's strong pursuit of innovative DeFi applications.

Development of the AI Track

The AI Agent sector continues the strong development trend since the end of last year, shifting from pure AI token trading to deeper application scenario development. The rise of DeFAI marks the entry of AI applications in the Crypto Assets field into the 2.0 phase, mainly reflected in four directions: user-friendly AI interfaces, portfolio management, infrastructure construction, and market analysis and forecasting. Leading projects such as Griffain, Anon, and AXIBT show that the market is transitioning from the proof-of-concept stage to the actual application stage.

Public Chain Performance Analysis

Layer 1 public chains are overall showing a stable upward trend, but the increase is not as significant as in the Decentralized Finance and AI sectors. Among mainstream public chains, those with advantages in AI and Decentralized Finance ecosystems are performing better, reflecting that the value of underlying public chains increasingly relies on the prosperity of their upper-layer application ecosystems. It is noteworthy that public chains supporting AI computation are beginning to attract market attention, indicating that the next round of public chain competition may revolve around AI computational capabilities.

Market Outlook

The short-term market will be influenced by the Federal Reserve's January interest rate meeting and policy direction, with increased volatility expected. Investors are advised to focus on DeFi projects that have actual application scenarios when selecting DeFi projects, avoiding the pursuit of purely conceptual speculation. In terms of DeFi investment, opportunities for returns in machine gun pool projects can be considered, but leverage risk must be strictly controlled. Regarding timing choices, it is recommended to observe policy changes in the short term, avoiding blind chasing of highs to ensure the safety of the investment portfolio.