AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report

Market Overview

This week, the crypto market overall showed an upward trend, with the market sentiment index rising from 10% to 19%. Although it is still in the panic zone, signs of recovery have begun to emerge. Despite the fact that market liquidity has not fully recovered during the New Year's holiday, funds have started to gradually flow back in. Altcoins performed overall stronger than the benchmark index this week, but it is expected that in the short term, they will maintain a synchronized trend with the benchmark index.

The TVL of DeFi projects rose from $52.7 billion to $53.2 billion, an increase of 0.95%, ending two consecutive weeks of negative growth. The Gun Pool project and Prep DEX project performed outstandingly, mainly benefiting from the rise in market base interest rates leading to increased yields, as well as the decrease in liquidity during the holiday period resulting in increased demand for contract trading.

The AI Agent track continues to maintain a hot position, with a market size reaching $12.2 billion and a week-on-week growth of nearly 12%. Market attention is gradually shifting from AI Memes to AI infrastructure construction projects, among which the self-issued tokens of AI Agents have become the most关注领域, and related infrastructure projects are performing outstandingly.

This week, the Meme coin market mainly focused on AI-related projects, benefiting from the wealth creation effect brought by AI Agents issuing their own coins, with AI Meme projects experiencing significant increases. This reflects that market funds are chasing AI-related concepts, but it also shows an increase in speculative characteristics.

Public chain projects performed well during this week's market rebound, mainly benefited from the increase in on-chain DeFi project APY and the demand for AI project development. Public chains supporting AI development, such as Solana and zkSync Era, have shown outstanding performance, indicating that public chains are moving towards AI infrastructure development.

Hot Tracks

AI Agent

The AI Agent track continues to be a market focus, with AI Agent self-issued token projects creating a certain wealth effect and attracting investor attention. Market attention has shifted from AI Memes to AI infrastructure construction projects, such as Phala Network, which have performed prominently.

DeFi track

This week's projects with rapid TVL growth are mainly focused on the Gatling Pool project and the Prep DEX project. Notable projects include:

• Resolv: Launched a new type of liquidity pool, completing cross-chain expansion on the Base network.
• Bluefin: Integrated Sui Bridge, added multiple payment methods
• StakeStone: Launching multi-chain access to Berachain Vault, achieving cross-chain functionality.
• Euler: The number of active users reached a level comparable to Compound.
• Hyperliquid: the mainnet has launched staking features, and added AI-related token leveraged trading.

public chain

Outstanding public chains include:

• Zircuit: Collaborating with the Gud Tech AI team to develop an AI smart vault
• Hyperliquid: Launching staking features, adding AI token leveraged trading
• Toncoin: Developing TON Teleport BTC permissionless bridging solution
• ZKsync Era: released the "2025 is the year of ZK" declaration
• Solana: Launched AI Agent Kit development toolkit

Market Outlook

Next week, the U.S. will release employment data, which may impact the Federal Reserve's interest rate cut decision and is expected to bring market volatility. With the holiday ending, institutional investors are returning, and market liquidity is expected to recover. It is recommended to maintain a defensive allocation, increase the allocation ratio of top assets such as BTC and ETH, and moderately participate in high-yield liquidity pools and Prep DEX projects, but it is necessary to strictly control positions and manage risks effectively.