Market Overview

Main Market Trends

• The market sentiment index dropped from 91% to 53%, remaining in the greed zone, but BTC maintains high volatility while Altcoins are generally under pressure, leading to increased market divergence.

• The market capitalization of USDT and USDC has both increased, with respective gains of +2.91% and +3.23%. The total TVL in DeFi continues to rise to $54.1 billion, indicating that the market continues to attract new funds to enter.

• The DeFi sector leads the market with a weekly return rate of 16.47%, and DEX trading volume has reached a new high of 630 billion in 2024, showing strong development momentum.

• The Meme coin market has returned to the market's vision, performing actively amidst market fluctuations, bringing new liquidity and user growth points.

• DEX projects have received the highest attention, while sectors like AI and GameFi are performing weakly, reflecting a market trend concentrating on infrastructure and liquidity sectors.

• It is advisable for investors to remain cautious, pay attention to opportunities in re-staking projects and the DEX sector, while also keeping an eye on the market fluctuations that may arise from next week's Federal Reserve interest rate meeting.

Market Sentiment Index Analysis

• The market sentiment index has dropped from 91% last week to 53%, still in the bullish range.

• Altcoins performed worse than the benchmark index this week, showing a volatile downward trend. After a decline in the first half of the week, most assets failed to recover their losses. Due to leveraged positions, the market saw about $2 billion in positions forcibly liquidated, leading to a significant deleveraging of long positions. Given the current market structure, it is expected that Altcoins will remain in sync with the benchmark index in the short term, with a low probability of independent market movements.

Overview of Overall Market Trends

• The cryptocurrency market has been in a broad fluctuation trend this week, with the sentiment index still in the bullish phase.

• DeFi-related cryptocurrency projects have performed remarkably, indicating the market's ongoing interest in enhancing fundamental returns.

• DEX projects performed well this week, indicating that on-chain investors are beginning to actively participate in on-chain investment activities.

• The Meme track has returned to the spotlight this week and is starting to attract market attention.

Hot Tracks

DEX

This week, due to the significant price fluctuations in the overall market, many profit opportunities have been created for investors. On-chain investors are actively using DEX for trading, and as on-chain funds and users continue to enter the DEX sector, it has driven the growth trend of DEX projects this week.

( on-chain data of DEX

The most intuitive data to observe for DEX is the TVL and trading volume, as these two indicators can directly reflect the status of the DEX sector.

• TVL: The TVL of DEX projects has risen rapidly this week, increasing from last week's 25.22B to the current 26.58B, a growth rate of 5.39%. It can be seen that capital is actively entering DEX projects.

• DEX Weekly Trading Volume: The trading volume of DEX reached its highest level in mid-2024 this week, hitting $63 billion, with a trading volume of $7.58 billion in the last 24 hours, indicating a surge in trading volume in the DEX sector.

The DEX sector shows a clear trend of business model upgrades. Leading protocols represented by Hyperliquid and dYdX are undergoing a strategic transformation from single trading functions to comprehensive financial infrastructure. This evolutionary path is manifested in the following way: protocols are based on their own chain architecture, achieving vertical integration through functional aggregation, and creating a one-stop DeFi service ecosystem. Such architectural innovations signify that the DEX track is evolving from a single trading level to a comprehensive financial infrastructure direction, and the reconstruction of track value is underway.

![DeFi track valuation reconstruction, sector rotation becomes apparent｜Frontier Lab Crypto Market Weekly Report])https://img-cdn.gateio.im/webp-social/moments-b30b5d38b44bf527742aea9a0a7119f6.webp(

SUI

The Sui ecosystem has been highly discussed in the market this week, with the SUI price rising by 7.8%, outperforming BTC and ETH. The Defi projects within the Sui ecosystem have shown excellent growth performance this week.

) Data of Defi projects on Sui chain

• TVL: Sui's TVL has risen rapidly this week, increasing from last week's 1.598b to the current 1.793b, representing a rise of 12.88%. It can be seen that on-chain funds are actively entering the Sui chain.

• Accounts: The total number of users on the Sui chain has reached 66,543,317, an increase of 2,184,755 from last week's 64,358,562, representing a growth rate of 3.39%. Although the growth rate may not seem significant, the ability to achieve an increase amid the volatile market conditions this week indicates that the Sui chain has a certain capacity to attract traffic.

• DEX Trading Volume: The main DEXs on the Sui chain are: Cetus, Aftermath Finance, and BlueMove DEX. This week, the total trading volume on Sui chain's DEX exceeded $35 billion, with an average daily trading volume of $466 million, indicating that the DEXs on the Sui chain are very active.

• Defi project TVL growth: The top three projects by TVL in the Sui ecosystem are NAVI Protocol, Suilend, and Aftermath Finance, which belong to the lending and DEX tracks. This week, their TVL growth rates are 1.14%, 17.22%, and 1.72%, respectively. It can be seen that although there is a fluctuating trend, funds in the Sui ecosystem are continuously entering Defi projects.

To determine whether a public blockchain is favored by the market, the most direct criterion is the fluctuation of its TVL. Based on the above data, we can see that the Sui chain is currently maintaining rapid development. Due to the strong performance of SUI against the broader market, the underlying assets of the Sui ecosystem are continuously increasing, which in turn drives the growth of APY for its on-chain DeFi projects. At the same time, there is significant volatility in the overall market, presenting profit opportunities, thus attracting a large number of on-chain users to participate, promoting the overall development of the Sui ecosystem.

DeFi Track

TVL Growth Ranking

The top 5 projects by TVL growth in the market over the past week, excluding smaller public projects not included in the TVL, with a minimum standard of 30 million USD, data source: Defilama.

| Project Name | Last 7 Days Increase | TVL###million( | |---------|-----------|--------------| | Synthetix | 87.69% | 576.82 | | Babylon | 67.32% | 3782.36 | | Usual Money | 53.61% | 833.76 | | BounceBit | 50.31% | 664.98 | | Equilibria | 40.27% | 281.03 |

) Synthetix###SNX(: ) Recommendation Index: ⭐️⭐️⭐️⭐️(

• Project Introduction: Synthetix is a decentralized synthetic asset protocol built on Ethereum, aimed at providing on-chain exposure to real-world assets through blockchain technology. The core functionality of Synthetix includes allowing users to mint synthetic assets by collateralizing their SNX tokens.

• Latest developments: This week, Synthetix increased the APY for LP users by implementing SCCP-373, raising the share of trading fees for V3 LP from 40% to 60%. Meanwhile, Synthetix Treasury intends to charge some aggregator fees to increase revenue for V3 LP. Additionally, Synthetix announced this week the completion of its acquisition of the leveraged token platform TLX, planning to integrate TLX's leveraged token features by improving parameters and redeploying contracts, while also launching a leveraged token incentive program.

) Babylon### Not Issued Coin(: ) Recommendation Index: ⭐️⭐️⭐️⭐️⭐️(

• Project Introduction: The Babylon project aims to enhance the security of other proof-of-stake blockchains by leveraging the security of Bitcoin. The core idea is to activate idle Bitcoin assets through a trustless staking mechanism, addressing the conflict between Bitcoin holders' pursuit of asset security and participation in high-yield projects.

• Latest developments: Although the market price has fluctuated sharply this week, BTC has performed very strongly, remaining at a high level. Furthermore, users are generally optimistic about BTC's future development, which has led to a more resolute holding of BTC while also seeking to unlock the liquidity of their BTC holdings, thus opting for more income-generating projects based on BTC. Additionally, this week a certain trading platform announced that users can directly stake BTC from their accounts on that platform to earn returns in Babylon, bringing in significant new capital for Babylon. During the promotional period, users participating in the activity on that platform can receive a maximum of 12% in points boost, which has incentivized a large number of users from the platform to participate.

) Usual Money###USUAL(: )Recommended Index: ⭐️⭐️⭐️(

• Project Introduction: Usual Money is a stablecoin project supported by a certain trading platform, aimed at providing a new stablecoin solution through a decentralized approach. The core mechanism of the project includes three main tokens: stablecoin USD0, bond product USD0++, and governance token USUAL.

• Latest Developments: Recently, Usual Money has completed a Checker upgrade. After the upgrade, the annualized yield for holders of the bond product USD0++ reached 48%, with an average APY of 54% for USD0/USD0++ in Curve, and an average annualized yield rate of 52% for USD0/USDC. At the same time, the minting volume of USUAL was reduced by 17%, which increased the price of USUAL. This has attracted many users to participate in Usual Money to obtain high annual arbitrage returns.

) BounceBit###BB(: ) Recommendation Index: ⭐️⭐️⭐️⭐️(

• Project Introduction: BounceBit is a re-staking foundational layer within the Bitcoin ecosystem. It is designed to work closely with a certain trading platform to create high-yield CeDeFi components; additionally, it builds the BounceBit Chain to establish specific use cases for Restaking.

• Latest developments: Recently, BounceBit has increased the staking rates for various tokens, with USDT's 30-day annualized yield reaching 54.25%, BTC's 30-day annualized yield reaching 24.55%, BNB's 30-day annualized yield reaching 37.13%, and ETH's 30-day annualized yield reaching 37.7%, thus attracting a large number of users to invest their assets into BounceBit for staking. Meanwhile, this week BounceBit has formed a partnership with Ondo to introduce tokenized RWA to BounceBit, beginning its entry into the RWA sector.

) Equilibria###EQB(: )Recommended Index: ⭐️⭐️⭐️(

• Project Introduction: Equilibria is a gun pool project aimed at generating high returns for users. It utilizes the yield enhancement model of veToken adopted by Pendle, providing higher returns to LPs through the tokenized version of vePENDLE, ePENDLE, and offering additional rewards to PENDLE holders.

• Latest Development: This week, Equilibria strengthened its partnership with Curve by launching the first enhanced pool - scrvUSD pool, aimed at increasing user yields. Following this, enhanced pools for SolvBTC, cmETH, and ePENDLE were introduced, raising the users' APY to a maximum of 59%, thus attracting a large number of users to participate in arbitrage.

In summary, we can see that the projects with rapid TVL growth this week are mainly concentrated in the stablecoin yield sector ) machine gun pool ###.

Overall Performance of the Track

• The market capitalization of stablecoins is steadily increasing: USDT rose from $141 billion last week to $145.1 billion, an increase of 2.91%, while USDC grew from $40.2 billion to $41.5 billion, an increase of 3.23%. It can be seen that this week both USDT, which is primarily in non-U.S. markets, and USDC, which is primarily in U.S. markets, have experienced growth, indicating that the entire market continues to see a sustained inflow of capital.

• Liquidity is gradually increasing: The risk-free arbitrage rates in traditional markets continue to decline with ongoing interest rate cuts, while the arbitrage rates of on-chain DeFi projects are increasing due to the rising value of cryptocurrency assets. Returning to DeFi will be a very good choice.

• Funding Situation: The TVL of Defi projects has increased from $53.2 billion last week to $54.1 billion now, with new funds reaching 1.69%. It continues to maintain positive growth this week and has sustained an upward trend for nearly two months, proving that funds are continuously flowing into Defi projects.

In-depth Analysis

Upward driving force:

The core driving factors of this round of increase can be summarized as the following transmission path: the market enters a bull market cycle, which drives the demand for liquidity to rise, thereby pushing up the level of the basic lending interest rate, amplifying D.