AI Track Ignites 2025 | Frontier Lab Crypto Market Weekly Report

Market Overview

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

The total locked value of DeFi projects ( TVL ) rose from 52.7 billion to 53.2 billion, an increase of 0.95%, ending two consecutive weeks of negative growth. The performance of the gun pool and prepaid DEX projects was outstanding, mainly due to the increase in yields brought about by the rise in market base interest rates, as well as the increased demand for contract trading resulting from the decrease in liquidity during the holiday period.

The AI Agent track continues to maintain its status as a market hotspot, with a market size reaching $12.2 billion and a week-on-week growth of nearly 12%. Market attention is gradually shifting from AI Meme to AI infrastructure construction projects, among which the self-issued tokens of AI Agents have become the most关注的领域, with related infrastructure projects such as Phala Network performing outstandingly.

This week, the Meme coin market is primarily focused on AI-related projects, benefiting from the wealth creation effect brought by AI Agent's autonomous coin issuance, leading to significant gains for AI Meme projects. This trend reflects that market funds are chasing AI-related concepts but also shows an increase in speculative characteristics.

Public chain projects performed well during this week's market rebound, mainly benefiting from the increase in on-chain DeFi project APYs and the development demands of AI projects. Among them, public chains supporting AI development, such as Solana and zkSync Era, stood out, indicating that public chains are evolving towards AI infrastructure.

Hot Tracks

AI Agent

The AI Agent track continues to be the focus of market attention, primarily driven by AI Agent's self-issued tokens. Some Meme coins issued through Virtuals and ai16z have seen significant increases, creating a wealth effect and attracting investor interest. The hottest topics in the market are the ai16z asset issuance platform and the infrastructure project Phala Network for AI Agent's self-issued tokens, indicating a shift in market focus from AI Memes to AI infrastructure.

DeFi track

The projects with rapid TVL growth in the past week are mainly concentrated in machine gun pools and prepaid DEX projects:

• Resolv: The Delta neutral stablecoin project has successfully launched a new type of liquidity pool and completed cross-chain expansion on the Base network.
• Bluefin: A DEX on the Sui chain, completing Sui Bridge integration, supporting suiUSDT cross-chain.
• StakeStone: A full-chain liquidity infrastructure, launching the Berachain Vault that supports multi-chain access.
• Euler: Lending protocol, the number of weekly active users has reached a level comparable to Compound.
• Hyperliquid: High-performance DEX, mainnet launch of staking feature, added support for AI-related token leveraged trading.

public chain

The top five public chains with the highest TVL growth in the past week:

1. Zircuit: Collaborating with the Gud Tech AI team to develop AI smart vaults and multi-chain trading infrastructure.
2. Hyperliquid: The mainnet has launched staking features and added support for AI-related token leveraged trading.
3. Toncoin: Develop TON Teleport BTC permissionless bridging solution and collaborate with Jupiter Exchange to develop a liquidity aggregator.
4. ZKsync Era: Released the declaration "2025 is the year of ZK", emphasizing the development in three dimensions: performance, security, and usability.
5. Solana: Launched the AI Agent Kit development toolkit in collaboration with Send.ai, multiple GameFi projects announced their development plans for 2025.

Market Rise and Fall Rankings

Top Five Gainers

1. AI16Z: Released version 0.1.7 update, supports multiple chains, enhances AI features.
2. ATA: Bringing TEE technology on-chain, collaborating with EigenLayer to develop the Multi-Prover AVS system.
3. GRIFFAIN: Launched the SAIMP open standard protocol and proposed the "@ Store" concept.
4. VIRTUAL: The usage of the GAME framework has increased significantly, with protocol revenue reaching $60 million.
5. PHA: Release of the 2025 TEE x AI Technology Report, announcing important network architecture adjustments.

Meme Token Increase Ranking

This week, the growth in the Meme sector is mainly concentrated on AI-related projects, driven by the wealth creation effect of AI Agent's autonomous token issuance.

Social Media Hot Topics

The most discussed topic on social media this week is the L1s project. As market sentiment improves, on-chain users are shifting their attention and funds to DeFi projects. Public chains are supporting the development of AI projects, which performed well in this week's rebound.

Overall Overview of Market Themes

According to the weekly return rate statistics, the AI sector performed the best, while the SocialFi sector performed the worst. The AI sector benefited from the continued popularity of AI Agent's autonomous token issuance, while the main player in the SocialFi sector, TON, failed to follow the market rebound.

Outlook for Next Week

macroeconomic factors analysis

• The release of U.S. employment data may impact the Federal Reserve's interest rate cut decision, and is expected to bring market volatility.
• Institutional investors return after the holiday, and market liquidity is expected to recover.

sector rotation trend

• DeFi sector: Bulletproof pools and prepaid DEX projects may continue to benefit.
• AI Sector: AI Agent related projects may maintain their popularity.
• Investment Strategy Recommendation: Maintain a defensive allocation, increase the allocation ratio of major assets such as BTC and ETH, moderately participate in high-yield liquidity pools and prepaid DEX projects, but strictly control positions and manage risks.