This article will delve into the 8 key states of the crypto industry, distilling important market insights and exploring 6 trends shaping the future trajectory of the crypto industry.
Author: @arndxt_xo
Translated by: Baihua Blockchain
In this article, I will deeply analyze the 8 key states of the crypto industry, extract important insights on market developments, and discuss 6 trends 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 Solana's explosive performance.
Next, we will break these down into 8 important observations and 6 eye-catching trends that reveal key changes in the market.
8 states of the crypto industry
The following image is a brief summary of the directory.
1) The market size for AI agents remains relatively small
Despite Virtuals (an AI agent launch platform) reaching a market cap of approximately $4 billion, the total market cap of AI agents themselves is only about $1 billion. Although AI agents have recently been one of the hottest topics, there remains significant room for growth in the market as adoption and attention continue to rise.
2) Surge in trading volume on decentralized exchanges (DEX) vs centralized exchanges (CEX)
Perpetual DEXs are particularly popular, and an increasing number of projects have achieved billion-dollar valuations without relying on centralized exchanges for listings. This marks a significant step towards a truly decentralized trading ecosystem, showcasing the broader prospects of DeFi.
3) Surge in attention towards decentralized science (DeSci)
Interest in decentralized science (DeSci) has significantly increased, attracting more developers and researchers' attention. Although some narratives (such as liquid staking, BRC-20, modular, L2, and RWA) have weakened, the rapid rise of DeSci may signal new innovation opportunities.
4) Continued decline in Bitcoin supply on trading platforms
The share of BTC (and ETH) on trading platforms continues to decline, indicating that large holders and long-term investors are increasing their positions. A decrease in supply on trading platforms 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 supported 1:1 by Bitcoin, designed to unlock approximately $2 trillion in Bitcoin liquidity for DeFi. Holders of sBTC can earn underlying yields (such as around 5% Bitcoin yield) and can leverage on platforms like Zest for an annual return of about 6%, with more investment opportunities on the horizon. This provides a viable way to 'make Bitcoin work,' potentially driving more Bitcoin-centric DeFi innovations.
6) Stablecoin supply surpasses $200 billion historic 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 surpassed Visa, continuing to demonstrate that they represent an emerging trillion-dollar opportunity.
7) Monthly crypto fund growth
Although still below the peak of 2021, the influx of investment capital has significantly 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 an extreme optimism phase 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 time, surpassing the total of all other L1s combined. Solana's activity matches Ethereum on several key metrics, and the upcoming Firedancer upgrade may further enhance its scalability and network utilization. It is becoming increasingly clear that Ethereum and Solana can (and likely will) coexist in a multi-chain future.
6 narrative trends
1) Bitcoin consolidation and potential bottom
Bitcoin has been trading in the $94,000 to $95,000 range, frequently dipping below $94,000 and touching $93,000, frustrating traders. Currently, Bitcoin's price hovers around $97,000. The recent accumulation near $94,000 suggests a potential bottom, but a retracement to $88,000 to $92,000 remains possible. If Bitcoin rises, altcoins are expected to perform better, similar to the bull market of 2021.
2) AI agents dominate market narratives
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, grew from $300 million to $600 million. GAME: Approaching a $400 million market cap. AI16Z (based on Solana): grew 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 substantial attention and investment.
3) The return of Memecoin and Murad Coin
Emerging star projects: $$SPX$$GIGA have both reached historic highs, with $SPX breaking $1 billion and $GIGA reaching an $800 million market cap. 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 have the potential for a resurgence.
4) Highlights of the altcoin market
Dinosaur coins: $$XRP (+15%)$$XLM (+35%) continue to perform strongly. From Fantom to Sonic Network: $$FTM is rebranding$$S, initially plunging to $0.66, then rebounding, possibly signaling a potential long-term opportunity. CEXToken: BGB: has quadrupled since December, currently valued at $7.5 billion. GT: has increased by 50% since December.
5) Performers to watch and new issuance projects
Fuel Network ($FUEL): A new L2 network showing strong potential. MORPHO: Continues to set new highs. Other noteworthy new coins: $$PEAQ$$USUAL (strong), VANA, XION (bottom rebound).
6) Strange price fluctuations
UXLINK: Extremely volatile, initially surged (+140%), then quickly retraced. MOCA: Experienced a frenzy of rises and sell-off patterns after being listed on BN.
3, Some newly launched projects this week
Lastly, here are some emerging projects; those interested can follow up for more 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
