1) The AI agent market size remains relatively small
Despite the market capitalization of Virtuals (an AI agent launch platform) soaring to around $4 billion, the total market capitalization of AI agents themselves is only about $1 billion. Although AI agents have recently been one of the hottest topics, there is still significant room for growth in the market 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, and more projects are 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 prospects of DeFi.
3) Interest in decentralized science (DeSci) has skyrocketed
Interest in decentralized science (DeSci) has grown significantly, 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 innovative opportunities.
4) The supply of Bitcoin on exchanges continues to decline
The share of BTC (and ETH) on exchanges continues to decline, indicating that large holders and long-term investors are increasing their positions. A decrease in supply on exchanges typically alleviates selling pressure, thereby boosting bullish momentum in the market, especially for Bitcoin.
5) Achieving programmable Bitcoin through sBTC on Stacks
Stacks has launched sBTC, a 1:1 Bitcoin-backed asset designed to unlock approximately $2 trillion in Bitcoin liquidity for DeFi. Holders of sBTC can earn underlying yields (around 5% Bitcoin yield) and can borrow against it on platforms like Zest, with an annualized yield of about 6%, and more investment opportunities are set to open up. This provides a practical way to 'make Bitcoin work,' potentially driving more Bitcoin-centric DeFi innovations.
6) Stablecoin supply surpasses $200 billion, reaching a historical 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, continuing to prove that they are a burgeoning trillion-dollar opportunity.
7) Monthly cryptocurrency fund growth
Although still below the peak in 2021, the inflow of investment capital has clearly increased. Historically, capital inflows typically occur at market tops, and the current growth trend suggests that we are still in the early stages of a growth cycle, not yet reaching the phase of extreme market optimism.
8) Additional: The rapid rise of Solana
By December 2024, Solana generated $43.1 billion in trading fee revenue in a short time, surpassing the total of all other L1s combined. Solana's activity compares favorably with Ethereum on several key metrics, and the upcoming Firedancer upgrade may further enhance its scalability and network utilization. It is increasingly evident that Ethereum and Solana can (and likely will) coexist in a multi-chain future.