Translation: Blockchain in Plain Language
In this article, I will delve into 8 key states of the crypto industry, distilling important insights on market developments and exploring 6 trends that are shaping the future direction of the crypto industry.
We will discuss the rise of AI agents, the revival of memecoins, the consolidation of Bitcoin, and the explosive performance of Solana.
Next, we will break down these contents into 8 important observations and 6 eye-catching trends, revealing key changes in the market.
1) 8 states of the crypto industry
The following is a brief summary of the directory.
1) The market size of AI agents is still relatively small
Despite the market cap of Virtuals (an AI agent launch platform) skyrocketing to around $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 is still significant growth potential in the market as adoption and attention continue to rise.
2) A surge in trading volume on decentralized exchanges (DEX) compared to 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 listing. This is a significant step towards a truly decentralized trading ecosystem, showcasing the broader prospects of DeFi.
3) The soaring attention on decentralized science (DeSci)
Interest in decentralized science (DeSci) has significantly increased, attracting more attention from developers and researchers. Although some narratives (such as liquid staking, BRC-20, modularization, L2, and RWA) have weakened, the rapid rise of DeSci may signify new innovative opportunities.
4) Bitcoin supply on exchanges continues to decline
The proportion of BTC (and ETH) on exchanges continues to decline, indicating that large holders and long-term investors are increasing their positions. A reduction in supply on exchanges typically alleviates selling pressure, thereby driving bullish momentum in the market, especially for Bitcoin.
5) Achieving programmable Bitcoin via sBTC on Stacks
Stacks has launched sBTC, an asset backed 1:1 by Bitcoin, aimed at unlocking approximately $2 trillion in Bitcoin liquidity for DeFi. Holders of sBTC can earn underlying returns (around 5% Bitcoin yield) and can lend on platforms like Zest, with an annualized return of about 6%, and more investment opportunities are on the horizon. This provides a practical way to 'make Bitcoin work' and could drive more Bitcoin-centric DeFi innovations.
6) Stablecoin supply surpasses $200 billion 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 that of Visa, continuing to demonstrate that they represent a burgeoning trillion-dollar opportunity.
7) Monthly crypto funding growth
Although still below the peak in 2021, the influx of private equity investment 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 and have not reached a period of extreme optimism.
8) Additional: The rapid rise of Solana
In December 2024, Solana generated $43.1 billion in transaction fee revenue in a very short time, surpassing the total of all other L1s combined. Solana's activity rivals 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.
2, 6 narrative trends
1) Bitcoin consolidation and potential bottom
Bitcoin has been trading in the range of $94,000 to $95,000, frequently breaking below $94,000 and touching $93,000, which has been quite frustrating for traders. Currently, the Bitcoin price hovers around $97,000. The recent accumulation around $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 the Base platform, has 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: Approaching 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 wave of innovation, attracting significant attention and investment.
3) The return of memecoins and Murad Coin
Emerging star projects: $$SPX$$GIGA have both reached historical 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 may see a revival.
4) Highlights of the altcoin market
Dinosaur Coins: $$XRP (+15%)$$XLM (+35%) continue to perform strongly. From Fantom to Sonic Network: $$FTM is rebranding to $$S, first sharply dropping to $0.66, then rebounding, possibly signaling a potential long-term opportunity. CEX tokens: BGB: has quadrupled since December, with a current market cap of $7.5 billion. GT: has risen by 50% since December.
5) Notable performers and new issuance projects to watch
Fuel Network ($FUEL): A new L2 network showing strong potential. MORPHO: Continues to set new highs. Other notable new coins: $$PEAQ$$USUAL (strong), VANA, XION (rebounding from the bottom).
6) Strange price fluctuations
UXLINK: Extremely volatile, first rising sharply (+140%), then rapidly retracing. MOCA: After being listed on Binance, it went through a crazy surge and sell-off pattern.
3) Some newly launched projects this week
Finally, here are some emerging projects that you may follow up on for further insights.
@AlwaysBeenChoze
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@Trong0322
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