Author: @arndxt_xo
Compiled by: Plain Language Blockchain
In this article, I will delve into eight key states of the crypto industry, distilling crucial insights into market developments and exploring six trends that are shaping the future trajectory of the crypto industry.
We will discuss the rise of AI agents, the resurgence of memecoins, the consolidation of Bitcoin, and the explosive performance of Solana.
Next, we will break down these contents into eight important observations and six eye-catching trends, revealing key changes in the market.
1. Eight states of the crypto industry
The following diagram is a brief summary of the directory.
1) The AI agent market size remains small
Despite the market cap of Virtuals (an AI agent launch platform) surging to about $4 billion, the total market cap of AI agents themselves is only about $1 billion. Although AI agents have been one of the hottest topics recently, there remains significant growth potential as adoption and attention continue to rise.
2) The trading volume of decentralized exchanges (DEX) and centralized exchanges (CEX) has surged
Perpetual DEXs are particularly popular, with an increasing number of projects achieving billion-dollar valuations without relying on centralized exchanges for listing. This is a significant step towards a truly decentralized trading ecosystem, showcasing the broader potential of DeFi.
3) The interest in decentralized science (DeSci) has surged
Interest in decentralized science (DeSci) has significantly increased, attracting more developers and researchers. Although some narratives (such as liquid staking, BRC-20, modularity, L2, and RWA) have weakened, the rapid rise of DeSci may indicate new innovation opportunities.
4) The supply of Bitcoin on exchanges continues to decline
The proportion of BTC (and ETH) on exchanges continues to decline, indicating that large holders and long-term holders are increasing their positions. A decrease in supply on exchanges typically alleviates selling pressure, thereby driving bullish momentum in the market, especially for Bitcoin.
5) Achieving programmable Bitcoin through sBTC on Stacks
Stacks has launched sBTC, an asset backed 1:1 by Bitcoin, aimed at unlocking about $2 trillion in Bitcoin liquidity for DeFi. Holders of sBTC can earn underlying yields (such as approximately 5% Bitcoin yield) and borrow on platforms like Zest, with annualized returns of around 6%, with more investment opportunities opening up soon. This provides a practical way to 'make Bitcoin work,' potentially driving more Bitcoin-centric DeFi innovations.
6) The supply of stablecoins surpasses $200 billion all-time high
The supply of stablecoins has increased from $125 billion at the beginning of 2024 to $200 billion. The annual trading volume of stablecoins has already surpassed Visa, further proving that they are a burgeoning trillion-dollar opportunity.
7) Monthly crypto fund growth
Despite still being below the peak of 2021, the infusion of investment capital has clearly increased. Historically, capital inflows typically occur at market tops, and the current growth trend suggests we are still in the early stages of a growth cycle, not yet reaching a state of extreme optimism in the market.
8) Additional: The rapid rise of Solana
By December 2024, Solana achieved $43.1 billion in transaction fee revenue in a short period, surpassing the total of all other L1s combined. Solana's activity is comparable to Ethereum across multiple key metrics, and the upcoming Firedancer upgrade may further enhance its scalability and network usage. It is becoming increasingly clear that Ethereum and Solana can (and likely will) coexist in a multi-chain future.
2. Six narrative trends
1) Bitcoin consolidation and potential bottom
Bitcoin has been trading in the range of $94,000 to $95,000, frequently dipping below $94,000 and touching $93,000, causing frustration among traders. Currently, Bitcoin's price hovers around $97,000. The recent consolidation near $94,000 indicates a potential bottom, but a retracement to $88,000 to $92,000 is still possible. If Bitcoin rises, altcoins are expected to perform better, similar to the bull market of 2021.
2) AI agents dominate market narrative
Key performers: VIRTUAL, an AI agent launch platform on Base, doubled its market cap from $2.5 billion to $5 billion in just 10 days. Important projects in the ecosystem: AIXBT: a Twitter-based agent, increased from $300 million to $600 million. GAME: nearing a market cap of $400 million. AI16Z (based on Solana): increased from $1 billion to $2.5 billion. Other notable projects include $ZEREBRO ($800 million), $GRIFFAIN ($470 million), and $ARC ($400 million). AI agents are leading a new wave of innovation, attracting significant attention and investment.
3) The return of memecoins and Murad Coin
Emerging star projects: $$SPX $$GIGA have both hit all-time highs, with $SPX breaking $1 billion and $GIGA reaching a market cap of $800 million. KEKIUS: After Elon Musk changed his Twitter avatar, its market cap briefly soared to $400 million but quickly retraced by 75%. Memecoins like WIF, POPCAT, and FWOG may see a resurgence.
4) Highlights of the altcoin market
Dinosaur Coin: $$XRP (+15%) $$XLM (+35%) continues to perform strongly. Fantom to Sonic Network: $$FTM is undergoing rebranding $$S, first sharply dropping to $0.66, then rebounding, possibly indicating a potential long-term opportunity. CEXToken: BGB: has quadrupled since December, with a current market cap of $7.5 billion. GT: has increased by 50% since December.
5) Notable performers and new issuance projects
Fuel Network ($FUEL): a new L2 network showing strong potential. MORPHO: continues to set new highs. Other new coins to watch: $$PEAQ $$USUAL (strong), VANA, XION (bottoming rebound).
6) Strange price fluctuations
UXLINK: Extremely volatile, first surging (+140%), then rapidly retracing. MOCA: After being listed on BN, it experienced a frenzy of surges and sell-offs.
3. Some newly launched projects this week
Finally, here are some emerging projects; you can follow up on them for further insights and details.
@AlwaysBeenChoze
@marvellousdefi_
@Trong0322
@YashasEdu
@0xHvdes
@defi_ant_degen
@meekdonald_
@twindoges
@belizardd
@0xelonmoney
@0xAndrewMoh
@the_smart_ape
@andrewtalksdefi
@Foxi_xyz
@0xxbeacon
@Karamata2_2
@izu_crypt
@Mars_DeFi
@TheDeFiPlug
@cchungccc
@zordcrypt
@DeRonin_
@ahboyash
@Flowslikeosmo
@CryptoStreamHub
@stacy_muur
@crypthoem
@momochenming
@nihaovand
@0xcryptowizard
@Alvin0617
@0xWatell
@wsdxbz1
@Frogling68
@jackvi810
