Author: @arndxt_xo
Compiled by: Blockchain in Plain Language
In this article, I will analyze 8 key states of the crypto industry, distill important insights on market development, and explore 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 the explosive performance of Solana.
Next, we will break down these contents into 8 key observations and 6 eye-catching trends, revealing key changes in the market.
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) soaring to about $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 is still significant room for growth in the market as adoption and attention continue to rise.
2) Surge in trading volume on decentralized exchanges (DEX) compared to centralized exchanges (CEX)
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 toward a truly decentralized trading ecosystem, showcasing the broader prospects of DeFi.
3) Surge in interest in decentralized science (DeSci)
Interest in decentralized science (DeSci) has significantly grown, attracting more developers and researchers. Although some narratives (such as liquid heavy staking, BRC-20, modularity, L2, and RWA) have weakened, the rapid rise of DeSci may indicate new innovation opportunities.
4) Bitcoin supply on exchanges continues to decline
The share of BTC (and ETH) on exchanges continues to decline, indicating that large holders and long-term holders 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) Achieve 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 yield (around 5% Bitcoin yield) and can borrow against it on platforms like Zest, with an annual yield of about 6%, and more investment opportunities are about to open up. This provides a practical way to 'make Bitcoin work,' potentially driving more Bitcoin-centric DeFi innovation.
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 surpassed Visa, continuing to prove that they represent a burgeoning trillion-dollar opportunity.
7) Monthly growth of crypto funds
Although still below the peak in 2021, the influx of invested capital has significantly increased. Historically, capital inflows tend to occur at market tops, and the current growth trend suggests that we are still in the early stages of a growth cycle and have not yet reached extreme optimism in the market.
8) Additional: The rapid rise of Solana
In December 2024, Solana generated $43.1 billion in transaction fee revenue in a short period, surpassing the total of all other L1s combined. Solana's activity rivals Ethereum on multiple 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 range of $94,000 to $95,000, frequently dipping below $94,000 and touching $93,000, which has left traders quite frustrated. Currently, the price of Bitcoin is hovering around $97,000. The recent accumulation near $94,000 suggests a potential bottom, but a pullback to $88,000 to $92,000 is still possible. If Bitcoin rises, altcoins are expected to perform better, similar to the bull market in 2021.
2) AI agents dominate market narratives
Key performers: VIRTUAL, an AI agent launch platform on the Base platform, 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, from $300 million to $600 million. GAME: nearing a market cap of $400 million. AI16Z (based on Solana): 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 set historical highs, with $SPX surpassing $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. Fantom to Sonic Network: $$FTM is rebranding as $$S, first sharply dropping to $0.66 and then rebounding, possibly indicating a potential long-term opportunity. CEXToken: BGB: has increased fourfold since December, with a current market cap of $7.5 billion. GT: has increased by 50% since December.
5) Noteworthy performers and new issuance projects
Fuel Network ($FUEL): A new L2 network showing strong potential. MORPHO: Continues to set new highs. Other new coins worth watching: $$PEAQ$$USUAL (strong), VANA, XION (rebounding from the bottom).
6) Strange price fluctuations
UXLINK: Extremely volatile, first surging (+140%) and then quickly retracting. MOCA: After listing on BN, it experienced a frenzy of surges and sell-off patterns.
3 new projects launched this week
Finally, here are some emerging projects that you may be interested in following up on for further insights.
@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
