Market Overview

Main Market Trends

• The market sentiment index has fallen from 91% to 53%, still in the greed zone, but BTC is fluctuating at a high level while altcoins are generally under pressure, leading to increased market divergence.
• The market capitalization of USDT and USDC both increased by ( +2.91% and +3.23%), while the total TVL in DeFi rose 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 at 630 billion (, showing strong development momentum.
• The meme coin market is back in focus, performing actively amidst the market fluctuations, bringing new liquidity and user growth points to the market.
• DEX projects have received the highest attention, while AI, GameFi, and other sectors are performing poorly, reflecting the market's focus shifting towards infrastructure and liquidity sectors.
• Investors are advised to remain cautious, focusing on opportunities in re-staking projects and the DEX sector, and closely monitor potential market fluctuations that may arise from next week's Federal Reserve interest rate meeting.

![DeFi track valuation reconstruction, sector rotation emerging｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-5b2c1a2fbf59c11db9d1fd054e4bdd62.webp(

Market Sentiment Index Analysis

• The market sentiment index fell from 91% last week to 53%, still within the bullish range.
• Altcoins performed weaker than the benchmark index this week, showing a downtrend with fluctuations.
• Due to leveraged positions, the market experienced approximately $2 billion in forced liquidations, significantly deleveraging long positions.
• It is expected that short-term altcoins will follow the benchmark index, 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 the bullish phase.
• DeFi projects have performed outstandingly, showing the market's continued focus on improving base yields.
• DEX projects performed well this week, indicating that on-chain investors are starting to actively participate in on-chain investment activities.
• The meme track has returned to the spotlight and is starting to gain market attention.

Hot Tracks

DEX

This week's market prices have fluctuated greatly, creating many profit opportunities for investors. On-chain investors are increasingly using DEX trading, driving the growth of DEX projects.

) DEX on-chain data

• TVL: Increased from 25.22B last week to 26.58B, a growth of 5.39%, with funds actively entering DEX projects.
• Weekly trading volume: reached the highest value of 63 billion USD in 2024, with a trading volume of 7.58 billion USD in the last 24 hours, trading volume surged.

The DEX sector is showing a clear trend of upgrading its business model. Leading protocols are transforming from a single trading function to a comprehensive financial infrastructure, achieving vertical integration through functional aggregation based on their own chain layer architecture, creating a one-stop DeFi service ecosystem. This kind of architectural innovation signifies that the DEX track is evolving towards a comprehensive financial infrastructure, with a reconstruction of track value currently underway.

![DeFi sector valuation reconstruction, sector rotation evident｜Frontier Lab Crypto Market Weekly]###https://img-cdn.gateio.im/webp-social/moments-b30b5d38b44bf527742aea9a0a7119f6.webp(

SUI

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

) Sui chain DeFi project data

• TVL: Increased from 1.598B to 1.793B, a growth of 12.88%, with funds actively entering the Sui chain.
• Accounts: A total of 66,543,317, an increase of 2,184,755 from last week ### 3.39% (
• DEX trading volume: The total amount this week has exceeded $35 billion, with an average daily trading volume of $466 million. On-chain DEX is very active.
• DeFi project TVL growth: The top three are NAVI Protocol, Suilend, and Aftermath Finance with TVL growth rates of 1.14%, 17.22%, and 1.72% respectively.

Based on the above data, the Sui chain continues to develop rapidly. The SUI price outperforms the market, driving the growth of on-chain DeFi project APYs. Market volatility provides profit opportunities, attracting a large number of users to participate and promoting the development of the entire Sui ecosystem.

DeFi Track

TVL Growth Ranking

The top 5 projects by TVL growth in the market over 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, raise V3 LP trading fee share from 40% to 60%; complete the acquisition of TLX, integrate leveraged token functionality; launch leveraged token incentive program.

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

• Project Introduction: Utilize the security of Bitcoin to enhance the security of other PoS blockchains, activating idle Bitcoin assets through a trustless staking mechanism.
• Latest Developments: BTC shows strong performance, users are optimistic about future developments, and more options for BTC-based yield projects; Binance announces that users can directly stake BTC from their accounts on Babylon, bringing in significant new funds.

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

• Project Introduction: A stablecoin project supported by Binance, with core mechanisms including stablecoin USD0, bond USD0++, and governance token USUAL.
• Latest developments: After the Checker upgrade, the annualized yield for USD0++ holders reaches 48%. The average APY for USD0/USD0++ and USD0/USDC in Curve is 54% and 52% respectively, while the USUAL minting volume is reduced by 17%, attracting users to participate in high-yield arbitrage.

) BounceBit###BB(:) Recommendation Index: ⭐️⭐️⭐️⭐️(

• Project Introduction: Bitcoin ecological re-staking underlying layer, deeply cooperating with Binance to build CeDeFi components, establishing BounceBit Chain.
• Latest developments: Increased staking yields for various tokens, with 30-day annualized returns for USDT, BTC, BNB, and ETH reaching 54.25%, 24.55%, 37.13%, and 37.7% respectively; partnered with Ondo to introduce tokenized RWA.

) Equilibria###EQB(:) Recommendation Index:⭐️⭐️⭐️(

• Project Introduction: The Machine Gun Pool project utilizes Pendle's veToken to enhance the yield model, providing higher returns for LPs through ePENDLE.
• Latest developments: Strengthening cooperation with Curve, launching a new enhanced pool, with user APY reaching up to 59%, attracting a large number of users to participate in arbitrage.

In summary, this week's projects with rapid TVL growth are mainly concentrated in the stablecoin yield sector ) gun pool (.

Overall Performance of the Track

• The market capitalization of stablecoins is steadily increasing: USDT increased by 2.91% to $145.1 billion, USDC increased by 3.23% to $41.5 billion, indicating that market funds continue to enter.
• Liquidity is gradually increasing: Traditional market risk-free arbitrage rates are declining, while on-chain DeFi project arbitrage rates are increasing due to the rising value of crypto assets, making a return to DeFi a good choice.
• Funding Situation: The TVL of DeFi projects has increased from 53.2 billion USD to 54.1 billion USD, with a new funding increase of 1.69%, maintaining a continuous upward trend for nearly two months.

In-depth Analysis

Driving Force of Increase: The market has entered a bull market cycle, driving up liquidity demand and pushing the base lending interest rate level upward, thereby amplifying the profit potential of arbitrage loop strategies in DeFi protocols. Specifically:

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

This conduction mechanism strengthens the intrinsic value support of the DeFi sector, forming a positive growth momentum.

![DeFi sector valuation reconstruction, sector rotation becomes evident｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-88728426a72772ae8fbf3803502d9a48.webp(

Performance in Other Tracks

Public Chain

The top 5 public chains by TVL increase in the past week:

| Project Name | 7-Day 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: Open interest reached $3.5 billion, surpassing DYDX to become the largest on-chain Perp DEX; trading volume rapidly expanded after launching the ME project.
• Sui: The movement of the token drives the rise of the Move ecosystem; collaboration with Backpack and Phantom wallets; on-chain Meme coin KAPI is hot; DEX daily trading volume exceeds $466 million.
• Algorand: The on-chain meme coin MONKO is highly popular; it announces support for the RWA track; two main stablecoins comply with MiCA standards.
• PulseChain: Active on-chain Meme coins; the largest DEX-PulseX trading volume increased by 62%; market outflow of PLS will be listed on Binance.
• Bitcoin: Performs well with a small decline; users are optimistic about future increases and choose the BTCFi project to earn additional profits.

Overview of Gainers List

The top 5 market tokens with the highest gains in the past week ) do not include those with very low trading volumes and meme coins (:

| Token | Project Name | Seven-Day Growth Rate | 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, the yield has increased, reducing the minting volume by 17%, attracting users to participate in high-yield arbitrage.
• BGB: Launching popular tokens; CEO considering entering the US market; trading volume surpasses OKX, ranking third
• SUSHI: Launched Dojo Agent and Tweet Token features; DAO proposed a diversified funding strategy.
• ORCA: Strengthening cooperation with Binance; launching a new token creation tool; collaborating with HawkFi and NATIX Network.
• ACX: Partnered with Binance, tokens listed on multiple platforms; collaborated with HTX Global, Bitvavo, and Yodl.

Meme Token Growth Rankings

| Token | Project Name | 7-Day Price Change | Circulating Market Cap | Belonging Blockchain | |------|---------|-----------|----------|----------| | 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, the Meme project has returned to the market's attention, performing well amid market fluctuations, creating on-chain wealth effects, and attracting more users to participate.

Social Media Hot Topics

This week )12.7-12.13( DEX appeared the most, the situation of the listed tokens is as follows ) excluding those with too small trading volume 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 |