This article delves into the key states and trends of the cryptocurrency industry, covering important market dynamics such as the rise of AI agents, the development of decentralized exchanges, and Bitcoin consolidation. This article is based on a piece by @arndxt_xo, organized and translated by Baihua Blockchain. (Background: Will AI be the narrative main line of this cycle? A comparison of platform developments of various AI Agents) (Supplementary Background: MicroStrategy has plummeted 44% from its peak! 10x Research: The leverage Bitcoin narrative is dissipating; three key factors will determine BTC's trend this year) In this article, I will analyze 8 key states of the cryptocurrency industry, extract important insights into market development, and explore 6 trends shaping the future trajectory of the cryptocurrency industry. We will discuss the rise of AI agents, the resurgence of memecoins, Bitcoin consolidation, and Solana's explosive performance. Next, we will break down these contents into 8 important observations and 6 eye-catching trends, revealing key changes in the market. 1. Eight States of the Cryptocurrency Industry The following is a summary of the directory. 1) The AI agent market remains relatively small Despite Virtuals (an AI agent launch platform) reaching a market cap 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 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 DEX is particularly popular, and an increasing number of projects have achieved billion-dollar valuations without relying on centralized exchanges. 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 (like liquid staking, BRC-20, modularity, L2, and RWA) have weakened, the rapid rise of DeSci may indicate new innovative opportunities. 4) Bitcoin supply on trading platforms continues to decline The proportion of BTC (and ETH) on trading platforms continues to decline, indicating that large holders and long-term holders are increasing their positions. A reduction in supply on trading platforms typically eases selling pressure, thereby driving bullish momentum in the market, especially for Bitcoin. 5) Programmable Bitcoin enabled 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 (such as approximately 5% Bitcoin yield) and can borrow against it on platforms like Zest for an annualized yield of about 6%, with more investment opportunities set to open. This provides a practical way to "make Bitcoin work," potentially driving more Bitcoin-centric DeFi innovations. 6) Stablecoin supply surpasses a historical high of $200 billion The supply of stablecoins 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 demonstrate that they are a burgeoning trillion-dollar opportunity. 7) Monthly growth in crypto funds Although still below the peak in 2021, the influx of investment capital has significantly increased. Historically, capital inflows typically occur at market tops, and the current growth trend indicates that we are still in the early stages of a growth cycle, not yet reaching a phase of extreme market optimism. 8) Additional: The rapid rise of Solana In December 2024, Solana generated $43.1 billion in trading fee revenue in a short period, exceeding the total of all other L1s. Solana's activity rivals Ethereum across multiple 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. 2. Six Narrative Trends 1) Bitcoin consolidation and potential bottom Bitcoin has been trading within the range of $94,000 to $95,000, frequently dipping below $94,000 and touching $93,000, leaving traders quite frustrated. Currently, the price of Bitcoin hovers around $97,000. Recent clustering around $94,000 suggests a potential bottom, but a retracement to between $88,000 and $92,000 is still possible. If Bitcoin rises, altcoins are expected to perform better, similar to the bull market of 2021. 2) AI agents dominate market narratives Key performer: 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 that grew from $300 million to $600 million. GAME: Approaching a market cap of $400 million. 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 significant attention and investment. 3) The return of memecoins and Murad Coin Emerging star projects: $$SPX$$GIGA both hit historical highs, with $SPX breaking $1 billion and $GIGA reaching a market cap of $800 million. KEKIUS: briefly surged to a market cap of $400 million after Elon Musk changed Twitter's avatar, but quickly retraced by 75%. Memecoins like WIF, POPCAT, and FWOG may be poised for a revival. 4) Highlights in the altcoin market Dinosaur coins: $$XRP (+15%)$$XLM (+35%) continue to perform strongly. Fantom to Sonic Network: $$FTM is rebranding $$S, initially plummeting to $0.66, then bouncing back, possibly indicating a long-term opportunity. CEXToken: BGB: has quadrupled since December, currently at a market cap of $7.5 billion. GT: has risen by 50% since December. 5) Noteworthy performers and new issuance projects Fuel Network ($FUEL): a new L2 network showing strong potential. MORPHO: continues to set new highs. Other new coins to watch: $$PEAQ$$USUAL (strong), VANA, XION (bouncing back from the bottom). 6) Strange price fluctuations UXLINK: extremely volatile, initially surged (+140%) and then quickly retraced. MOCA: after listing on BN,...

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