Article source: Blockchain in Plain Language
Author: @arndxt_xo
Translation: Blockchain in Plain Language
In this article, I will delve into the eight key states of the crypto industry, distill important insights into market developments, and explore six trends shaping the future trajectory of the crypto industry.
We will discuss everything from the rise of AI agents to the resurgence of memecoins, the consolidation of Bitcoin, and the explosive performance of Solana.
Next, we will break these contents down into eight key 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 market size of AI agents is still relatively small
Despite Virtuals (an AI agent launch platform) soaring to a market value of 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 considerable room for growth in the market as adoption and interest continue to rise.
2) Trading volume on decentralized exchanges (DEX) surges against centralized exchanges (CEX)
Perpetual DEXs are particularly popular, with an increasing number of projects achieving 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 interest in decentralized science (DeSci)
Interest in decentralized science (DeSci) has grown significantly, attracting more developers and researchers. Although some narratives (like liquid staking, BRC-20, modularity, L2, and RWA) have weakened, the rapid rise of DeSci may indicate new innovation opportunities.
4) Bitcoin supply continues to decline 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. The reduction of supply on trading platforms typically alleviates selling pressure, thereby boosting bullish momentum in the market, especially for Bitcoin.
5) Achieving programmable Bitcoin through sBTC on Stacks
Stacks launched sBTC, a 1:1 Bitcoin-backed asset designed to unlock about $2 trillion in Bitcoin liquidity for DeFi. Holders of sBTC can earn underlying yields (around 5% in Bitcoin yield) and can borrow against it on platforms like Zest, with annualized returns of about 6%, with more investment opportunities set to open up. This provides a practical way to 'make Bitcoin work,' potentially driving further Bitcoin-centric DeFi innovation.
6) The supply of stablecoins breaks the historical high of $200 billion
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 that of Visa, continuing to prove that they represent a burgeoning trillion-dollar opportunity.
7) Monthly growth of crypto funding
Although still below the peak of 2021, the inflow of investment capital has clearly increased. Historically, capital inflows usually 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 a period of extreme optimism in the market.
8) Addendum: The rapid rise of Solana
By December 2024, Solana generated $43.1 billion in transaction fee revenue in a short time, exceeding the total of all other L1s. 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, which has frustrated traders. Currently, the Bitcoin price hovers around $97,000. Recent consolidation near $94,000 suggests a potential bottom, but a retracement to the $88,000 to $92,000 range 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, doubled its market value 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: close to reaching a market value 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 value of $800 million. KEKIUS: After Elon Musk changed his Twitter profile picture, its market value 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
Dino coin: $$XRP (+15%) $$XLM (+35%) continue to perform strongly. From Fantom to Sonic Network: $$FTM is rebranding $$S, initially plummeting to $0.66, then rebounding, possibly indicating a potential long-term opportunity. CEXToken: BGB: Has risen 4 times since December, currently valued at $7.5 billion. GT: Has increased by 50% since December.
5) Notable performers and newly launched projects to watch
Fuel Network ($FUEL): A new L2 network that shows strong potential. MORPHO: Continues to set new highs. Other new coins worth watching: $$PEAQ$$USUAL (strong), VANA, XION (bottoming out).
6) Strange price fluctuations
UXLINK: Extremely volatile, initially surged (+140%), then quickly retraced. MOCA: Experienced a crazy rally and sell-off pattern after being listed on BN.
3) Some newly launched projects this week
Finally, below are some emerging projects that you may want to follow up on and explore further.
@AlwaysBeenChoze
@marvellousdefi_
@Trong0322
@YashasEdu
@0xHvdes
@defi_ant_degen
@meekdonald_
@twindoges
@belizardd
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