Original Article Title: "Frontier Lab Crypto Market Weekly Report | W46"
Original Source: Frontier Lab Chinese

Market Overview

Main Market Trends Summary

Overall Market Trend: The cryptocurrency market showed an overall upward trend this week, with the market sentiment index dropping to 60%. Despite this slight decline, it still shows signs of greed, reflecting investors' optimistic sentiment towards the market.

Altcoin Performance: Against the backdrop of Bitcoin's continuous all-time highs, Altcoins generally rose. Market participants hold an optimistic view of future developments, driving the rise of various Altcoins, demonstrating investors' attention to diversified investment opportunities.

DeFi Project Highlights: DeFi-related projects performed exceptionally well, with increasing market focus on enhancing yields, leading to rapid growth of these projects, reflecting investors' confidence in the DeFi sector.

Meme Sector Dynamics: Meme sector projects led the market this week, with their gains far surpassing those of other sector projects. This phenomenon not only attracted a significant amount of capital but also increased the overall market activity, demonstrating strong user interest and participation in this sector.

BTCFi Sector Dynamics: In the BTCFi sector, although the overall performance was not as expected, it still showed investors' optimistic outlook on BTC's future trends. Liquidity continued to increase, funds kept flowing into DeFi projects, supporting the overall market rise.

Market Liquidity: Liquidity has been gradually increasing, with the risk-free arbitrage rate in traditional markets continuously declining in the context of interest rate cuts, while on-chain DeFi projects' arbitrage rates have gradually risen due to the appreciation of crypto asset values. This trend has made a return to DeFi a good choice for investors.

Long-Term Investment Confidence: Overall, the market holds a positive attitude towards the long-term development of cryptocurrencies. Investors generally believe that in the current stage, BTC should be held firmly, and they hope to earn more returns while holding BTC.

Market Sentiment Index Analysis

The market sentiment index has dropped to 60%, a decrease from last week's 77%, putting the market sentiment in the greed stage.

This week, Altcoins saw a general rise following the overall market trend, and the Crypto market is still in a Fomo sentiment of price appreciation. Users generally hold an optimistic view of the future development of the Crypto market and have more confidence in the future. Consequently, Altcoins saw a general rise this week.

The current market price continues to set new highs, but is still in a greedy phase and close to neutral, indicating that although there may be a short-term adjustment phase at the current stage, the market price still has significant upside potential in the future.

Overall Market Trend Overview

The cryptocurrency market is currently trending upwards this week, with the sentiment index still in the greedy stage.

DeFi-related crypto projects have performed well, showing that the market continues to focus on aspects that increase fundamental returns.

Meme coin projects have led the market this week, with gains far exceeding those of other project categories, attracting a significant amount of funds to the market.

Within the DeFi category, BTCFi projects have also seen an upward trend in Total Value Locked (TVL) this week, following the overall market trend, demonstrating investors' optimism about their future.

Hot Race Tracks

Sui Ecosystem

The Sui Ecosystem has been highly discussed in the market this week, mainly focusing on the rise of Meme coin projects on the Sui chain and the rapid development of DeFi projects on the Sui chain.

Meme Coin Projects

This week, Meme coins on the Sui chain, such as ACT and PNUT, were listed on Binance, driving enthusiasm for Meme coins on the Sui chain and leading to a widespread surge. Following ACT and PNUT, other popular Meme coin projects on the Sui chain this week include:

urbos.Fun: A Meme token launch platform on the Sui chain, with trading volume exceeding $5 million within 24 hours of listing, launching a total of 1300 projects

HIPPO: A meme token themed around a popular Hippo on the Sui chain, with a market cap of approximately $136 million;

BLUB: The first Meme coin on Sui, themed around marine fish, with a market cap of approximately $30 million;

Uni: A Meme token named after the SUI founder's dog, with a market cap of approximately $167 million;

SHORK: A shark-themed Meme token on Sui, with a market cap of approximately $5 million;

This launch of Meme coins on the Sui chain has brought about a wealth effect on the Sui chain, continuously attracting on-chain users into the Sui ecosystem.

Sui On-Chain Defi Project Data

TVL: Sui's TVL has seen a rapid increase in the past two weeks, rising from 892.98m at the end of October to the current 1.304b, marking a 46.18% increase. This indicates a significant inflow of on-chain funds into the Sui chain.

New Accounts: The number of new accounts on the Sui chain has shown a significant increase this week, with a total of 1.32 million new accounts created. This marks a 59.13% growth from the previous week, demonstrating a strong network effect on the Sui chain.

DEX Trading Volume: The main DEXs on the Sui chain are: Cetus, Aftermath Finance, and BlueMove DEX. In the past 30 days, their trading volumes have reached: 48.12, 8.63, and 5.12 billion USD, with growth rates of 195.23%, 112.87%, and 156.23%, respectively. This indicates a significant increase in on-chain trading volume on the Sui chain.

Based on the above data, we can conclude that the Sui chain is currently following a growth pattern similar to Solana, using Meme coins as the driving force for on-chain growth, while the development of Defi projects on the Sui chain is progressing rapidly.

DeFi Track

TVL Growth Ranking

The top 5 projects with the highest TVL growth in the market in the past week (excluding small TVL projects, with a threshold of over 30 million USD). Source: Defilama

Overnight Finance (OVN): (Recommendation Rating: One Star)

Project Overview: Overnight Finance is an asset management protocol that offers passive income tools. It focuses on designing proprietary, Delta-neutral on-chain yield strategies for stablecoins. These strategies aim to generate sustainable returns through high-quality protocols (such as Aave and Uni V3).

Latest Developments: Recently, Overnight Finance has implemented a new buyback program, where 80% of the project's revenue is used to repurchase the OVN token. Additionally, by distributing OVN tokens to participating users, the actual APY of users is increased, with an additional distribution of 9,000 OVN tokens per week on top of the original APY.

DeSyn Protocol (Unlaunched): (Recommendation Score: Two Stars)

Project Overview: DeSyn Protocol is a decentralized asset management platform built on the Ethereum chain, providing a full suite of financial products to maximize investor fund potential, including derivative synthetic assets, leveraged staking ETFs, yield farming funds, RWA funds, and customized strategies.

Latest Developments: Recently, DeSyn Protocol has partnered with multiple blockchains, including Core and AILayer, to expand the DeSyn ecosystem and enhance accessibility. It has optimized and deployed Restaking products, integrated point rewards and automatic airdrop allocation, and conducted a mainnet fix update to address key performance issues, thereby improving platform stability and functionality. This week, DeSyn Protocol collaborated with AtDawn to further increase high-yield sources.

Suilend Protocol (SEND): (Recommendation Score: Four Stars)

Project Overview: Suilend Protocol is a lending protocol launched on the Sui chain by Solend.

Latest Developments: With the ongoing bullish trend in the crypto market, meme coins on the Sui chain have started listing on Binance, triggering a wealth effect on the Sui chain. This has increased activities on the Sui chain. As the largest lending protocol on the Sui chain, Suilend Protocol saw a significant increase in lending volume this week. With the growing market demand for funds, the APY for lenders has gradually increased, attracting more lending users to deposit in the project. This week, Suilend Protocol announced plans to gradually expand its derivatives and bridging business to broaden its scope. It is also preparing to launch new SEND token airdrop guidelines, called mdrops, to incentivize long-term SEND holders. An LST-mSUI for SUI token was released, and immediately 100,000 tokens were quickly grabbed after the launch.

Haedal Protocol (Unlaunched): (Recommendation Score: Two Stars)

Project Overview: Haedal Protocol is a liquidity staking protocol based on the Sui chain. The protocol allows users to stake their SUI tokens to contribute to Sui chain governance and decentralization. In return, users receive haSUI tokens, allowing them to continue participating in the DeFi ecosystem.

Latest Developments: Recently, multiple Meme coin projects on the Sui chain went live on Binance, triggering a wealth effect on the Sui chain. This attracted a new wave of users and funds into the Sui ecosystem, driving up the price of SUI. As Haedal Protocol, the staking protocol for SUI, also gained popularity among SUI users, its TVL saw rapid growth this week. Cetus, the largest DEX on the Sui chain, announced an investment in Haedal Protocol this week. The investment amount was not disclosed, showing full support for Haedal Protocol's development, increasing the adoption of haSUI and expanding haSUI pools.

Solv Protocol (Unreleased Token): (Recommendation Rating: Four Stars)

Project Overview: Solv Protocol is a decentralized asset management yield platform. Solv Protocol primarily allows users to collateralize mainstream decentralized assets, including BTC, ETH, USDT, into wrapped assets—LST, enabling users to earn rewards while circulating in the market.

Latest Developments: This week, with a significant increase in BTC price, Solv Protocol, a BTC-focused BTCFi project, experienced a substantial TVL growth. It partnered with Rooch Network to provide SolvBTC holders with new revenue and liquidity opportunities. Collaborating with Binance Web3, staking BTCB on Solv Protocol offers a $300,000 airdrop and additional SolvBTC rewards.

In summary, this week, projects with rapidly growing TVL are mainly focused on the BTCFi track and lending track.

Overall Track Performance

Stablecoin Market Cap Growth: USDT increased from last week's $1.267 trillion to $1.326 trillion, with a growth rate of 4.65%. USDC remained at $36.7 billion this week, unchanged from the previous week. It is evident that this week's rapid growth of USDT, primarily in non-US markets, indicates a significant influx of new funds from non-US markets into the market.

Liquidity Gradual Increase: As traditional market risk-free arbitrage rates continue to decline due to interest rate cuts, on-chain Defi projects' arbitrage rates are steadily increasing due to the rising value of cryptocurrency assets. Returning to Defi would be a very good choice.

New Growth Points: In addition to the traditional projects such as lending and DEX in the current stage of Defi, two powerful engines have been added: BTC and ETH's LSD, and Restaking projects.

Defi Track TVL (Data Source: https://defillama.com/categories)

Funds Situation: The TVL of Defi projects has increased from last week's $34.2 billion to the current $43.3 billion, with new funds reaching 26.62%, and has maintained a continuous upward trend in recent weeks, demonstrating that funds continue to enter Defi projects. In-depth Analysis
Rising Drivers: Market investors still have great confidence in the future price trends of BTC and ETH, so they continue to hold firmly. Additionally, this week, the price of BTC has been in a rapid upward phase, further increasing the returns for clients. Therefore, investors actively participate in various Defi projects to increase the returns on their held assets. Growth Leaders: For Defi projects, the growth in TVL is the most intuitive performance indicator. Through statistics on the TVL growth ranking, it can be seen that the projects with significant growth this week are projects in the Sui ecosystem and Defi yield farming projects. Yield farming projects help users maximize their yield while holding their own tokens. The projects in the Sui ecosystem mainly focus on on-chain lending and liquidity staking and belong to on-chain Defi projects of the Sui chain. This is mainly due to the rise in the price of the SUI token and the on-chain popularity and funds brought by meme coins on the Sui chain, leading SUI holders to have optimistic views on the future development. Therefore, investors should pay more attention to yield farming projects that increase market user returns in recent investments.

BTCFi Track

Track Status

This week, the entire Crypto market experienced a general increase, and the BTCFi Track projects also rose accordingly. However, the performance of the BTCFi Track was not outstanding. In particular, the liquidity staking project that pledges BTC to mint wrapped assets LST also had a mediocre performance this week. All projects experienced fluctuations in TVL, and their performance in the BTCFi Track still belongs to a strong segment in the track.

Current Track Status:

BTC saw a 17.58% increase this week. Excluding BTC's price change, the TVL of projects issuing LRT based on BTC, including Bedrock, Lombard, Lorenzo, Pell Network, PumpBTC, Solv Protocol, and Stakestone, saw the following changes: -2.37%, 0.23%, 0.78%, 13.16%, 11.53%, 7.33%, -12.69%.

Bedrock initiated a voting event on Mantle this week, offering users a reward of 500,000 Bedrock Diamonds. They provided a 33.55% APY for the uniBTC pool along with a promotion offering 6,300 USDC and 3 times Bedrock Diamond Points. Bedrock also launched the ROCKBERA NFT meme lottery event.

This week, Lombard collaborated with Corn to introduce the Baby Corn Plan, allowing users to deposit LBTC into Corn Vault, DeFi Vault, or Corn Silo in Pendle and receive an additional 69,420 Babylon points daily.

Due to a significant increase in BTC price this week, TVL of Solv Protocol, a BTC-based asset BTCFi project, also experienced substantial growth. Solv Protocol partnered with Rooch Network this week to offer new yield and liquidity opportunities for SolvBTC holders. They cooperated with Binance Web3 to launch an event where staking BTCB on Solv Protocol allows users to receive a $300,000 airdrop and additional SolvBTC rewards.

Lorenzo Protocol established a partnership with Avalon Labs this week to introduce a new lending product providing a 7% fixed rate for Avalon's USDa stablecoin. They participated in the OKX Cryptopedia event by OKX web3, offering participants 2 million Lorenzo points and an additional 20% bonus on base Lorenzo points. Lorenzo Protocol collaborated with Wormhole to provide cross-chain liquidity for stBTC and enzoBTC.

PumpBTC was listed on KiloEx this week, and users can deposit pumpBTC into the KiloEx Hybrid Vault to earn USDC rewards and KiloEx points. The Arbitrum Task Season has started, including PumpBTC, and participating users can receive 200,000 ARB tokens and 15 million PumpBTC points.

Pell Network partnered with Core this week to launch a testnet, offering Core Ignition Sparks and Pell airdrop points to participants. BTC Restaking with Babylon was upgraded this week, unlocking new possibilities for BTC holders to earn and protect decentralized services.

Stakestone secured a $22 million investment led by Polychain, with participation from Binance Labs and OKX Ventures.

Throughout the BTCFi space, there was no trend of the entire sector rapidly rising along with the BTC price surge. The BTC-L2 track saw a decline this week after a slight BTC pullback, even erasing the gains made earlier in the week. Projects issuing LST based on BTC performed well in the BTCFi sector. The TVL of BTCFi projects based on BTC did not experience a significant increase with the rise in BTC price this week. In fact, some projects saw a decrease. This might be attributed to some users perceiving increased risks accompanying the rapid BTC price surge and thus engaging in profit-taking to mitigate risks. Further analysis and tracking of BTCFi projects will be necessary in the future.

Other Track Performance

Public Blockchains

The top 5 gainers in public chain TVL over the past week (excluding smaller chains), source: Defilama

Bitlayer: As BTC's price trended upward this week, Bitlayer as a BTC-L2 solution also attracted market attention. This week, Bitlayer developed a manual SNARK validator chunker, advancing BitVM's development, enabling each transaction in the BitVM transaction graph to be small enough for operation on the Bitcoin mainnet. On-chain projects such as DeSyn Protocol, Avalon Finance, and Pell Network experienced rapid TVL growth, all seeing over 20% increases this week, driving the overall Bitlayer chain TVL up. Avalon Finance introduced a new stablecoin, USDa, offering USDa users over 20% APY returns and an 8% fixed borrowing rate, attracting more on-chain users to swap USDT for USDa, thereby boosting on-chain TVL.

Cardano: This week, Cardano founder Charles expressed willingness to collaborate with the U.S. government under the leadership of Trump to formulate cryptocurrency legislation. Rumors of collaboration with the Trump administration have fueled a rapid price surge. Cardano was previously deemed an unregistered security by the SEC. The market now widely believes that the Trump administration holds an open and weak regulatory stance on cryptocurrency. Consequently, projects previously highlighted by the SEC have seen rapid growth post-Trump's victory. Additionally, exchange Robinhood, which had previously delisted ADA, has re-listed ADA.

dydx: This week, dydx announced an upgrade, launching the dydx Unlimited upgrade. This includes permissionless market listings, MegaVault (utilizing liquidity from dydx users to act as market makers for all dydx Chain markets, creating new revenue streams for dydx users), and the Affiliates Program invitation plan. The founder of dydx announced that the current market has too much repetition in Perp Dex, and dydx aims to bring innovation. Over the next few months, dydx plans to introduce new integrations with popular wallets and third-party services, permissioned keys, instant deposits, and more innovative features.

Core: This week, Core underwent the Fusion upgrade, introducing Dual Staking to enhance Core's network security through double staking. It also added new utility to the CORE token by subsidizing it to increase Bitcoin returns for users. The BTCFi liquidity platform, BitFlux, was introduced to enhance liquidity for BTCFi assets. On-chain projects DeSyn Protocol, Corelend, and Pell Network saw rapid TVL growth, each rising by over 30% this week, driving up Core's TVL.

Hyperliquid: The primary function on the Hyperliquid chain is the Perp DEX, providing users with leveraged trading of various assets. This week, the overall Crypto market saw an upsurge, driving user participation in contract trading on the chain to seek high returns, leading to a new high of $6 billion in daily trading volume on Hyperliquid. Additionally, due to the recent outstanding performance of meme coin projects, many highly trending meme coins such as PUNT and PURR were listed on Hyperliquid, attracting a growing number of users. As a result, significant contract trading occurred on the Hyperliquid chain, predominantly through the Perp DEX, driving TVL growth.

Top Gainers Overview

The top 5 gainers in market token price over the past week (excluding tokens with very low trading volume and meme coins), data source: Coinmarketcap

This week's gainers did not exhibit a concentration in any specific sector. The rising tokens belong to the Gamefi, SocialFi, DEX, L1s, and L2 tracks.

X: X Empire is a Telegram-based click-to-earn game where players earn virtual currency by tapping on the screen and increase their earnings through character upgrades and task completion. The game is themed around Elon Musk, and players can accumulate in-game currency by clicking on a cartoonized version of Elon Musk. X Empire introduced an AI-generated avatar feature this week, and following Musk's help in Trump's victory in the U.S. presidential election, stocks and cryptocurrencies related to Musk saw a significant surge.

DORA: Dora Factory is a Substrate-based decentralized autonomous organization (DAO) infrastructure open-source blockchain project aimed at providing a range of plug-and-play governance features for the next generation of decentralized organizations and developers. Dora Factory did not have any positive news this week.

DRIFT: Drift Protocol is a decentralized trading platform based on the Solana blockchain, focusing on offering efficient, low-cost perpetual and spot contract trading services, primarily catering to futures contract traders. As the largest DEX on Solana, Jupiter mainly provides spot trading with a daily trading volume of around $1.5 billion, while Drift Protocol's daily trading volume remains around $80 million. Jupiter's fully diluted valuation (FDV) is $10.6 billion, whereas Drift's FDV is $1.2 billion. By comparing their business volume and FDV valuations horizontally, it can be observed that Drift Protocol is currently overvalued compared to Jupiter.

CRO: The Cronos project is a public chain project aimed at providing a high-performance, low-cost platform for decentralized applications and smart contracts. Recently, Cronos revealed a blueprint for an AI-powered ecosystem supporting the transformation of Cronos into a chain where AI agents can autonomously interact and transact. Some AI+Meme elements projects were launched on Cronos this week, garnering decent gains and attracting participation from some users.

DSYNC: Destra Network is an Ethereum Layer 2 project, with the main goal of addressing the centralization, censorship, and privacy issues of traditional network infrastructure, providing a secure, decentralized network hosting solution. This week, Destra Network launched the beta version of the Destra GPU Marketplace, aiming to democratize and liberalize GPU access in an unprecedented way.

Meme Token Price Surge List

Data Source: coinmarketcap.com

This week, the Meme project outperformed the overall market, especially Meme coin projects on the Solana blockchain, which saw a significant increase in price this week. They predominantly dominated the price surge list, creating a wealth effect on the chain and attracting more users to participate in Meme projects on the Solana blockchain.

Social Media Highlights

Based on the data of the top five daily growth themes from LunarCrush and the top five AI scores from Scopechat, the statistical data for this week (11/9-11/15) are as follows:

The most frequently mentioned theme is L1s. The tokens listed are as follows (tokens with extremely low trading volume and meme coins are excluded):

Data Source: Lunarcrush and Scopechat

According to data analysis, this week, the highest social media attention was on Layer 1 blockchain projects, which generally showed an upward trend. Their performance surpassed the overall market. Meme coin projects on various public chains had a very bright performance this week, usually with significant price surges, creating a considerable wealth effect. This attracted a considerable amount of funds to various public chains. Furthermore, with the overall Crypto market price increase, the APY provided to investors by DeFi projects in public chains has also rapidly increased, leading to an increase in the TVL and trading volume of various DeFi projects. This phenomenon reflects that in the current market environment, investors maintain an optimistic outlook on the future market.

Market Theme Overview

Data Source: SoSoValue

Based on the weekly return rate statistics, the Meme sector performed the best, while the Defi sector performed the worst.

Meme Sector: In the Meme sector, DOGE, SHIB, and PEPE hold a significant share, accounting for 60.44%, 15.47%, and 10.13% respectively, totaling 86.04%. This week, DOGE, SHIB, and PEPE showed very strong performance, with increases of 104.42%, 33.32%, and 120.23% respectively. Although other Meme coins have a smaller share, they saw significant increases this week, resulting in the overall outstanding performance of the Meme sector.

Defi Sector: The Defi sector has a large number of projects, and in SoSoValue's sample, LINK, UNI, and AAVE have the largest share, reaching 33.78%, 25.58%, and 9.98% respectively, totaling 69.34%. This week, LINK, UNI, and AAVE saw increases of 6.21%, -7.93%, and -11.24% respectively, leading to the smallest overall increase in the Defi sector. However, due to the overall rise in Crypto market prices, users' APYs have increased, leading to an increase in the number of participants in Defi activities.

Next Week's Major Crypto Events Preview

Thursday (November 21) Initial Jobless Claims for the week of November 16 in the United States

Friday (November 22) Crypto EXPO Milan; Final Value of the University of Michigan Consumer Sentiment Index for November

Next Week Outlook

This week, the Crypto market was in a FOMO sentiment as BTC price continued to hit new highs, leading to a general increase. It is expected that the Crypto market will continue to maintain a trend of oscillating growth next week. With BTC price setting new highs continuously, investor focus on diversified investment opportunities will further drive the performance of relevant projects. The strong performance of Meme sector projects is expected to continue, potentially attracting more capital inflow and bringing significant wealth effects.

Projects in the DeFi sector, especially lending and liquidity staking protocols, will benefit from the increase in base yields, and are expected to continue attracting a large number of investors. Moreover, the nature of DeFi projects is arbitrage, and the arbitrage rates of DeFi projects are gradually rising due to the increased value of crypto assets. This trend will make investors more inclined to return to DeFi, seeking higher yield opportunities. Therefore, we will further focus on and analyze DeFi projects in the future.

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