Article reprinting source: Blockchain in Plain Language
Author: @arndxt_xo
Compilation: Blockchain in Plain Language
In this article, I will delve into 8 key states of the crypto industry, distilling important insights into market developments, and exploring 6 trends that are 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 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) 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) Trading volumes on decentralized exchanges (DEX) surge compared to centralized exchanges (CEX)
Perpetual DEXs are especially popular, with an increasing number of projects 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) Decentralized science (DeSci) attention is skyrocketing
Interest in decentralized science (DeSci) has significantly increased, attracting more developers and researchers. Although some narratives (such as liquid staking, BRC-20, modular, L2, and RWA) have weakened, the rapid rise of DeSci may signal new innovative opportunities.
4) Bitcoin supply continues to decline on trading platforms
The share of BTC (and ETH) on trading platforms continues to decline, indicating that whales and long-term holders are increasing their positions. A decrease in supply on trading platforms typically alleviates selling pressure, thereby driving 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 receive underlying yields (around 5% Bitcoin yield) and can borrow 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 all-time 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 demonstrate that they represent a burgeoning trillion-dollar opportunity.
7) Monthly crypto fund growth
Although still below the peak of 2021, the influx of investment capital has clearly increased. Historically, capital inflows usually occur at market tops, and the current growth trend indicates that we are still in the early stages of a growth cycle, without having reached the extreme optimism period of the market.
8) Addendum: The rapid rise of Solana
By December 2024, Solana achieved $43.1 billion in transaction fee revenue in a short period, surpassing the total of all other L1s. Solana's activity competes with Ethereum on several 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, 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, Bitcoin's price hovers around $97,000. The recent accumulation near $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, 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 new wave of innovation, attracting significant attention and investment.
3) The return of memecoins and Murad Coin
Emerging star projects: $$SPX$$GIGA have both reached all-time highs, with $SPX surpassing $1 billion and $GIGA reaching a market cap of $800 million. KEKIUS: After Elon Musk changed his Twitter profile picture, its market cap briefly surged to $400 million but quickly retraced by 75%. Memecoins like WIF, POPCAT, and FWOG have the potential for a revival.
4) Highlights of the altcoin market
Dinosaur coins: $$XRP (+15%)$$XLM (+35%) continue to perform strongly. Fantom to Sonic Network: $$FTM is rebranding to $$S, initially plummeting to $0.66, then rebounding, possibly signaling a potential long-term opportunity. CEXToken: BGB: Up 4x since December, currently valued at $7.5 billion. GT: Up 50% since December.
5) Key performers and new issuance projects worth noting
Fuel Network ($FUEL): A new L2 network showing strong potential. MORPHO: Continues to hit new highs. Other new coins to watch: $$PEAQ$$USUAL (strong), VANA, XION (bottoming rebound).
6) Strange price fluctuations
UXLINK: Extremely volatile, initially surged (+140%), then quickly retraced. MOCA: After listing on BN, it experienced a frenzy of rises and sell-offs.
3) Some new projects launched this week
Finally, here are some emerging projects that you can follow up on for further information.
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