Crypto Market Weekly Report: Decentralized Finance Track Valuation Restructuring, Zone Rotation Evident

Market Overview

The main trend of the market

• The market sentiment index fell from 91% to 53%, remaining in the greed zone. BTC maintains high volatility, while Altcoins are generally under pressure, leading to increased market differentiation.
• The market capitalization of USDT and USDC both grew (by +2.91% and +3.23%, respectively). The total TVL of DeFi continues to rise to 54.1 billion USD, as the market continues to attract new funds.
• The DeFi zone leads the market with a weekly return rate of 16.47%. DEX trading volume reached a new high for 2024 ($63 billion), showing strong development momentum.
• The Meme coin market has returned to the spotlight, performing actively amidst the market fluctuations, bringing new liquidity and user growth points to the market.
• DEX projects have gained the highest attention, while AI, GameFi, and other sectors are underperforming, with market hotspots concentrating on infrastructure and liquidity zones.

Market Sentiment Index Analysis

• The market sentiment index has dropped from 91% last week to 53%, still in the bullish zone.
• Altcoins performed weaker than the benchmark index this week, showing a fluctuating downward trend. Due to leveraged positions, the market saw approximately $2 billion in forced liquidations, with long positions significantly deleveraging.

Overview of the overall market trend

• The cryptocurrency market has been in a wide-ranging fluctuation trend this week, and the sentiment index remains in the bullish phase.
• Projects related to DeFi have shown outstanding performance, and the market continues to pay attention to aspects of improving basic returns.
• DEX projects performed well this week, as on-chain investors began actively participating in on-chain investment activities.
• The meme zone has returned to the spotlight and is beginning to attract market attention.

Hot Zone

DEX

This week, the market price fluctuated significantly, creating many profit opportunities for investors. On-chain investors are actively using DEX for trading, boosting the growth of DEX projects.

DEX on-chain data

• TVL: The TVL of the DEX zone increased from 25.22B last week to 26.58B, a growth of 5.39%.
• Trading Volume: The DEX trading volume this week reached 63 billion USD, setting a new high for 2024. The trading volume in the last 24 hours was 7.58 billion USD.

The DEX zone shows a significant trend of upgrading its business model. Leading protocols are transforming from a single trading function to a comprehensive financial infrastructure, creating a one-stop Decentralized Finance service ecosystem. This kind of architectural innovation marks the evolution of the DEX track towards a comprehensive financial infrastructure, and the reconstruction of track value is underway.

SUI

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

Sui chain Decentralized Finance 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 (3.39%) compared to last week.
• DEX trading volume: Weekly total trading volume exceeds 35 billion USD, with an average of 466 million USD per day.
• Main DeFi project TVL growth: NAVI Protocol +1.14%, Suilend +17.22%, Aftermath Finance +1.72%.

The Sui chain maintains rapid development. The SUI price is stronger than the market, driving the growth of APY for on-chain Decentralized Finance projects, attracting a large number of users to participate and promoting the development of the entire ecosystem.

Decentralized Finance zone

TVL Growth Ranking

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

1. Synthetix (SNX): +87.69%
2. Babylon: +67.32%
3. Usual Money: +53.61%
4. BounceBit: +50.31%
5. Equilibria: +40.27%

overall performance of the zone

• Stablecoin market capitalization steadily increased: USDT +2.91%, USDC +3.23%.
• Liquidity gradually increases: The risk-free arbitrage rate in traditional markets decreases, while the arbitrage rate in on-chain Decentralized Finance projects rises.
• Funding situation: The TVL of DeFi projects increased from $53.2 billion to $54.1 billion, a rise of 1.69%.

in-depth analysis

The core driving factors of this round of increase:

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

This transmission mechanism enhances the intrinsic value support within the Decentralized Finance zone, creating a positive growth momentum.

Performance in Other Zones

public chain

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

1. Hyperliquid: +21.23%
2. Sui: +14.45%
3. Algorand: +10.99%
4. PulseChain: +7.33%
5. Bitcoin: +6.99%

Overview of the涨幅榜

The top 5 tokens with the largest price increase in the past week (excluding tokens with low trading volume and meme coins):

1. USUAL (Usual): +98.57%
2. BGB (Bitget): +95.01%
3. SUSHI (Sushi): +65.77%
4. ORCA (ORCA): +48.16%
5. ACX (Across Protocol): +45.88%

social media hotspot

This week, DEX-themed projects are the hottest, with related tokens generally performing better than those in other zones. Market fluctuations have created trading opportunities, and on-chain users are actively participating in trading, leading to a significant increase in DEX trading volume.

overall overview of market themes

According to weekly return statistics, the Decentralized Finance zone performed the best (+16.47%), while the AI zone performed the worst (-7.24%).

Outlook for Next Week

Macroeconomic Factors Analysis

• The market has already priced in the expectation of a 25 basis point interest rate cut at the Federal Reserve's December meeting.
• Pay attention to Powell's speech and the summary of economic expectations, assessing the direction of monetary policy in January 2025.
• In the short term, Microsoft's shareholder meeting resolutions and macro data may dominate market sentiment, and the crypto market is expected to maintain a volatile pattern.

zone rotation trend

• DeFi zone: Re-staking projects benefit from rising risk aversion; the DEX zone shows improved prosperity against the backdrop of increasing market volatility.
• AI zone: The Agent sub-track remains highly focused; Web2 and Web3 ecosystems are accelerating their integration.

investment strategy suggestions

• Maintain a defensive allocation, focusing on the hedging properties of top assets BTC and ETH.
• It is advisable to strategically position oneself in high-quality DeFi zones with intrinsic yields.
• It is advised that investors remain cautious, strictly control their positions, and manage risks effectively.