Crypto Market Weekly Report: Decentralized Finance Sector Valuation Restructuring, Zone Rotation Evident

Market Overview

The main trend of the market

• The market sentiment index has dropped from 91% to 53%, still in the greed zone. BTC remains in a high fluctuation range, while Altcoins are generally under pressure, leading to increased market differentiation.
• The market capitalization of USDT and USDC both increased, with respective gains of +2.91% and +3.23%, the total TVL of DeFi continues to rise to 54.1 billion USD, and the market continues to attract new funds.
• The Decentralized Finance zone leads the market with a weekly return rate of 16.47%, and the DEX trading volume reached a new high of 630 billion in 2024, showing strong development momentum.
• The meme zone returns to the market's view, performing actively amidst the market fluctuations, bringing new liquidity and user growth points to the market.
• DEX projects have received the highest attention, while AI, GameFi and other sectors have shown weak performance, with market focus shifting towards infrastructure and liquidity zones.
• Investors are advised to remain cautious, focusing on re-staking projects and opportunities in the DEX zone, while closely monitoring 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%, remaining in the bullish zone.
• Altcoins performed worse than the benchmark index this week, showing a fluctuating downward trend. After a decline in the first half of the week, most assets were unable to recover lost ground.
• Due to the impact of leveraged positions, the market experienced approximately $2 billion in forced liquidations, and long positions significantly deleveraged.
• Altcoins are expected to move in sync with the benchmark index in the short term, with a low probability of independent market trends.

![Reconstruction of DeFi zone valuation, zone rotation evident｜Frontier Lab crypto market weekly report])https://img-cdn.gateio.im/webp-social/moments-5b2c1a2fbf59c11db9d1fd054e4bdd62.webp(

) Overall Market Trend Overview

• The crypto market has been in a wide-ranging fluctuation trend this week, and the sentiment index is still in the bullish phase.
• Decentralized Finance related projects have performed well, and the market continues to focus on enhancing basic returns.
• DEX projects performed well this week, with on-chain investors starting to actively participate in on-chain investment activities.
• This week, the Meme zone has regained market attention.

Hot Zone

DEX

This week, the market price has fluctuated greatly, creating many profit opportunities for investors. On-chain investors are actively using DEX for trading, driving the growth of DEX projects.

On-chain data of DEX:

• TVL: The TVL of the DEX zone increased from 25.22B last week to 26.58B, a growth of 5.39%, with funds actively entering DEX projects.
• DEX weekly trading volume: Reached the highest value of 63 billion USD in 2024, with a trading volume of 7.58 billion USD in the last 24 hours, experiencing a surge in trading volume.

The DEX zone shows a trend of business model upgrading. Leading protocols represented by Hyperliquid and dYdX are transforming from a single trading function to a comprehensive financial infrastructure. This evolution is reflected in: the protocols are based on their own chain layer architecture, achieving vertical integration through functional aggregation, and creating a one-stop Decentralized Finance service ecosystem. This type of architectural innovation marks the evolution of the DEX track from a single trading level to an all-encompassing financial infrastructure, and the restructuring of track value is underway.

( SUI

The Sui ecosystem has seen high discussion activity this week, with the SUI price rising by 7.8%, outperforming BTC and ETH. The growth of DeFi projects in the Sui ecosystem has been outstanding.

Data on DeFi projects on the Sui chain:

• TVL: Increased from 1.598B to 1.793B, a growth of 12.88%, with funds actively entering the Sui zone.
• Accounts: A total of 66,543,317, an increase of 2,184,755 from last week)+3.39%###.
• DEX trading volume: The main DEXs on the Sui chain ###Cetus, Aftermath Finance, BlueMove DEX ### had a total trading volume of over 35 billion USD this week, with an average daily trading volume of 466 million USD, indicating active on-chain DEX activity.
• Decentralized Finance项目TVL增量: 排名前三的NAVI Protocol、Suilend和Aftermath Finance本周TVL增速分别为1.14%、17.22%和1.72%。

At this stage, the Sui chain is maintaining rapid development. The SUI price is stronger than the overall market, driving the APY growth of on-chain DeFi projects. The overall market is highly volatile, presenting profit opportunities, attracting a large number of on-chain users to participate and promoting the development of the Sui ecosystem.

Decentralized Finance zone

( TVL Growth Ranking

The top 5 projects by TVL growth in the past week ) TVL > 30 million USD (:

| Project Name | Seven-Day 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):

• Project Introduction: A decentralized synthetic asset protocol based on Ethereum, providing on-chain exposure to real-world assets.
• Latest developments: Increase LP user APY, complete the acquisition of the leveraged token platform TLX, and launch the leveraged token incentive program.

Babylon( not issued token):

• Project Introduction: A project that enhances the security of other proof-of-stake blockchains using the security of Bitcoin.
• Latest Developments: BTC performs strongly, and users are optimistic about BTC's development, choosing projects that generate interest based on BTC. Binance supports directly staking BTC to earn returns, bringing in a large amount of new funds.

Usual Money(USUAL):

• Project Introduction: A stablecoin project supported by Binance, providing decentralized stablecoin solutions.
• Latest development: After the Checker upgrade, bond product USD0++ holders have an annualized return of 48%, attracting users to participate in high-yield arbitrage.

BounceBit(BB):

• Project Introduction: A re-staking foundational layer on the Bitcoin ecosystem, in deep collaboration with Binance.
• Latest developments: Increase various token staking rates, collaborate with Ondo to introduce tokenized RWA.

Equilibria(EQB):

• Project Introduction: The Machine Gun Pool project utilizes Pendle's veToken to enhance the yield model.
• Latest developments: Strengthening cooperation with Curve, launching a new enhanced zone, with user APY reaching up to 59%.

Overall, this week's projects with rapid TVL growth are mainly concentrated in the stablecoin yield zone ( machine gun pool ).

( zone overall performance

• Stablecoin market capitalization steadily increases: USDT rises by 2.91% to $145.1 billion, USDC increases by 3.23% to $41.5 billion, indicating a continuous inflow of funds into the market.

• Liquidity is gradually increasing: The risk-free arbitrage rates in traditional markets are declining, while the arbitrage rates for on-chain DeFi projects are rising, making a return to DeFi a good choice.

• Fund Situation: The TVL of DeFi projects rose from $53.2 billion to $54.1 billion, an increase of 1.69%, maintaining a continuous upward trend for nearly two months.

![Decentralized Finance zone valuation reconstruction, zone rotation evident｜Frontier Lab crypto market weekly report])https://img-cdn.gateio.im/webp-social/moments-b30b5d38b44bf527742aea9a0a7119f6.webp(

) In-depth Analysis

Upward driving force:

The core driving factors of this round of increase:

• Market Environment: Bull market cycle brings overall liquidity demand increase
• Interest rate side: The base lending rate has increased, reflecting the market's expectations for funding pricing.
• Revenue side: The yield of the cyclical arbitrage strategy has expanded, and the endogenous yield within the protocol has significantly improved.

This transmission mechanism strengthens the intrinsic value support within the Decentralized Finance zone, forming a positive growth momentum.

Other zone performance

public chain

The top 5 public chains by TVL growth in the past week:

| Project Name | Weekly Increase | TVL(million) | |---------|-----------|--------------| | Hyperliquid | 21.23% | 2606.34 | | Sui | 14.45% | 1870.36 | | Algorand | 10.99% | 201.15 | | PulseChain | 7.33% | 953.99 | | Bitcoin | 6.99% | 4854.36 |

Hyperliquid: Market volatility has increased, and the number of users participating in on-chain contract trading has surged, with open contracts reaching $3.5 billion, surpassing DYDX to become the largest Perp DEX.

Sui:Move is in the spotlight, collaborating with multiple wallets, the on-chain Meme coin KAPI is hot, and the daily trading volume on DEX exceeds $466 million.

Algorand: The on-chain meme coin MONKO is gaining popularity, supports RWA projects, and the stablecoin complies with MiCA standards.

PulseChain: On-chain meme coins are active, DEX PulseX trading volume increased by 62%, PLS may be listed on Binance.

Bitcoin: Performing well, users are optimistic about the future market, choosing the BTCFi zone to earn additional profits.

Overview of the Gain List

The top 5 tokens with the highest price increase in the market over the past week ### excluding small-cap and meme coins (:

| Token | Project Name | Weekly Change | Circulating Market Cap | Circulation Rate | |------|---------|-----------|----------|--------| | USUAL | Usual | 98.57% | $257,540,796 | 8.37% | | BGB | Bitget | 95.01% | $4,816,158,400 | 69.99% | | SUSHI | Sushi | 65.77% | $473,147,704 | 69.06% | | ORCA | ORCA | 48.16% | $299,415,167 | 53.27% | | ACX | Across Protocol | 45.88% | $382,450,514 | 44.39% |

USUAL: High returns after the upgrade attract users.

BGB: Launching popular tokens, trading volume surpasses OKX, considering entering the US market.

SUSHI: New features drive trading volume, proposing a diversified funding strategy.

ORCA: Collaborating with multiple platforms to launch a new Token creation tool.

ACX: Collaborating with multiple exchanges to provide cross-chain payment services.

) Meme Token Price Increase Ranking

| Token | Project Name | Weekly Increase | Circulating Market Cap | Parent Blockchain | |------|---------|-----------|----------|---------| | FARTCOIN | Fartcoin | 187.53% | $507,074,756 | Solana | | BABYDOGE | Baby Doge Coin | 117.03% | $861,228,822 | BSC | | WOLF | LandWolf | 74.42% | $235,865,534 | Ethereum | | TURBO | Turbo | 52.45% | $879,341,386 | Ethereum | | DOG | DOG•GO•TO•THE•MOON ###Runes( | 40.57% | $957,481,330 | Bitcoin |

Meme projects are returning to the market spotlight, performing well, creating on-chain wealth effects, and attracting more users to participate.

) social media hotspot

This week, the DEX projects with the highest attention on social media are generally trending upwards, performing better than other zones. The market's fluctuations have created numerous trading opportunities, with on-chain users actively trading, leading to a significant increase in DEX trading volume.

Market Theme Overall Overview

| Zone | Weekly Return Rate | Monthly Return Rate | Quarterly Return Rate | |------|---------|---------|---------| | Decentralized Finance | 16.47% | 82.52% | 131.34% | | RWA | 4.02% | 77.21% | 116.86% | | PayFi | 2.71% | 167.79% | 234.46% | | Layer1 | 1.58% | 23.11% | 63.56% | | Cefi | 0.74% | 17.99% | 38.86% | | Meme | -2.37% | 14.15% | 184.93% | | Layer2 | -2.83% | 51.27% | 70.42% | | NFT | -3.65% | 43.78% | 111.69% | | SocialFi | -6.12% | 20.05% | 16.04% | | Depin | -6.69% | 53.91% | 76.17% | | Gamefi | -7.05% | 67.73% | 96.13% | | AI | -7.24% | 31.55% | 68.97% |

Decentralized Finance zone performed the best, AI zone performed the worst.

Decentralized Finance zone: LINK, UNI, and AAVE account for the largest proportions, with increases of 13.71%, 19.92%, and 42.85%, driving the performance of the entire zone.

AI zone: Major projects FET, RENDER, WLD, TAO have experienced significant declines, but the discussion remains heated, mainly focusing on AI Agent.

Next Week's Crypto Major Event Preview

• December 17: U.S. November Retail Sales MoM
• December 18: Hong Kong's "Stablecoin Regulation Bill" submitted for first reading in the Legislative Council.
• December 19: Federal Reserve interest rate decision ### upper limit (, announcement of interest rate resolution and economic outlook summary