Compiled by: Bai Hua Blockchain

In this article, I will delve into the 8 key states of the Altcoin industry, distill important insights into market development, and explore 6 trends that are shaping the future direction of the Altcoin industry.

We will discuss the rise of AI agents, the resurgence of memecoins, the consolidation of BTC, and the explosive performance of Solana.

Next, we will break down these contents into 8 important observations and 6 eye-catching trends, revealing the key changes in the market.

1. 8 States of the Altcoin Industry

The following diagram is a brief summary of the table of contents.

1) The AI agent market is still relatively small

Although Virtuals (an AI agent launch platform) has seen its market cap soar to around $4 billion, the total market value of AI agents is only about $1 billion. While AI agents have been one of the hottest topics lately, the market still has a lot of room for growth as adoption and attention continue to rise.

2) Trading volume on Decentralized Exchanges (DEXs) and Centralized Exchanges (CEXs) has surged

Perpetual DEXs are particularly popular, and more and more projects are achieving multi-billion dollar valuations without relying on centralized exchanges. This is a big step towards a truly decentralized trading ecosystem, showcasing the broader prospects of DeFi.

3) Interest in Decentralized Science (DeSci) has skyrocketed

Interest in Decentralized Science (DeSci) has grown significantly, attracting more developers and researchers. While some narratives (such as liquid staking, BRC-20, modularity, L2, and RWA) have weakened, the rapid rise of DeSci may signal new innovation opportunities.

4) BTC supply on trading platforms continues to decline

The proportion of BTC (and ETH) on trading platforms continues to decline, indicating that whales and long-term holders are increasing their holdings. Reduced supply on trading platforms usually alleviates selling pressure, driving bullish momentum in the market, especially for BTC.

5) Programmable Bitcoin through sBTC on Stacks

Stacks has launched sBTC, a 1:1 Bitcoin-backed asset aimed at unlocking around $2 trillion in Bitcoin liquidity for DeFi. sBTC holders can earn base yields (around 5% in Bitcoin) and can be borrowed on platforms like Zest, earning around 6% APY, with more investment opportunities opening up. This provides a practical way to "put Bitcoin to work" and may drive more Bitcoin-centric DeFi innovations.

6) Stablecoin supply hits a historic high of over $200 billion

Stablecoin supply has grown from $125 billion at the start of 2024 to over $200 billion. Stablecoins' annual trading volume has already surpassed Visa, continuing to prove they are a nascent trillion-dollar opportunity.

7) Monthly crypto fund inflows are growing

Although still below the 2021 peak, the influx of investment capital has clearly increased. Historically, capital inflows often occur at market tops, and the current growth trend suggests we are still in the early stages of the growth cycle, not yet at the extreme optimism phase of the market.

8) Bonus: The rapid rise of Solana

In December 2024, Solana generated $43 billion in transaction fee revenue, surpassing the total of all other L1s. Solana's activity is on par with Ethereum across multiple key metrics, and the upcoming Firedancer upgrade may further enhance its scalability and network utilization. It is becoming increasingly evident 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, frustrating traders. Currently, the Bitcoin price is hovering around $97,000. The recent accumulation around $94,000 suggests a potential bottom, but a retest of $88,000 to $92,000 is still possible. If Bitcoin rallies, Altcoins are expected to perform better, similar to the 2021 bull market.

2) AI agent-led market narrative

Key performers: VIRTUAL, an AI agent launch platform on the Base network, has doubled in market value from $2.5 billion to $5 billion in just 10 days. Significant projects in the ecosystem: AIXBT: a Twitter-based agent, has grown from $300 million to $600 million. GAME: is close to reaching a $400 million market cap. AI16Z (Solana-based): has grown 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 Coins

Emerging star projects: $$SPX and $$GIGA have both hit new all-time highs, with $SPX surpassing $1 billion and $GIGA reaching an $800 million market cap. KEKIUS: soared to a $400 million market cap after Elon Musk changed his Twitter profile picture, but quickly retraced by 75%. Memecoins like WIF, POPCAT, and FWOG may be poised for a comeback.

4) Altcoin market highlights

Dinosaur coins: $$XRP (+15%) and $$XLM (+35%) continue to perform strongly. Fantom to Sonic Network: $$FTM is rebranding to $$S, first plummeting sharply to $0.66, then rebounding, potentially signaling a long-term opportunity. CEX Tokens: BGB has quadrupled since December, now with a $7.5 billion market cap. GT has risen 50% since December.

5) Noteworthy performers and new launches

Fuel Network ($FUEL): a new L2 network showing strong potential. MORPHO: continues to hit new highs. Other notable new coins: $$PEAQ, $$USUAL (strong), VANA, XION (bouncing back).

6) Bizarre price movements

UXLINK: extremely volatile, first surging (+140%), then quickly retracing. MOCA: experienced a frenzy of pumping and dumping after listing on BN.

3. Some New Projects This Week

Finally, here are some emerging projects that you may want to follow up on and explore further.

@AlwaysBeenChoze

@marvellousdefi_

@Trong0322

@YashasEdu

@0xHvdes

@defi_ant_degen

@meekdonald_

@twindoges

@belizardd

@0xelonmoney

@0xAndrewMoh

@the_smart_ape

@andrewtalksdefi

@Foxi_xyz

@0xxbeacon

@Karamata2_2

@izu_crypt

@Mars_DeFi

@TheDeFiPlug

@cchungccc

@zordcrypt

@DeRonin_

@ahboyash

@Flowslikeosmo

@CryptoStreamHub

@stacy_muur

@crypthoem

@momochenming

@nihaovand

@0xcryptowizard

@Alvin0617

@0xWatell

@wsdxbz1

@Frogling68

@jackvi810

Link to the article: https://www.hellobtc.com/kp/du/01/5623.html

Source: https://x.com/arndxt_xo/status/1875847733925556723