Despite the return of stablecoin funds and the solid fundamentals of some hot sectors, the overall market is still affected by macro policy uncertainty and lack of investor confidence.

The cryptocurrency market experienced a significant drop this week, with sentiment indexes dropping sharply, showing widespread investor concerns. Nevertheless, some projects such as LTC, Sonic, SoSoValue, and Berachain attracted users through high APY strategies.

The DeFi and AI tracks are expected to continue to benefit from improved fundamentals and policy support, while competition in the public chain ecosystem will further intensify.

In the short term, the market will be affected by the Fed's January interest rate meeting and Trump's inauguration, and volatility is expected to increase.

Although we are still in the New Year's Day holiday and liquidity has not yet fully recovered, funds have begun to return to the Crypto market and the market is beginning to slowly recover.

The market sentiment index rose from 7% last week to 10%, but is still in the extreme panic range.

As the Christmas holiday approaches, market liquidity is expected to decline. Investors are advised to adopt a defensive allocation strategy, focusing on BTC and ETH. At the same time, they can pay attention to DeFi stable returns and AI infrastructure projects, but they need to be wary of the risk of increased volatility during the holidays.

The cryptocurrency market was in a wide range of fluctuations this week, and the sentiment index was still in the bullish stage. Defi-related crypto projects performed outstandingly, showing that the market continued to pay attention to improving basic returns.

The market sentiment index rose to 91%, entering an extremely greedy period; although BTC pulled back after briefly breaking through $100,000 on Thursday, the overall market resilience remained strong; ETH's strong performance drove the entire cryptocurrency market up, showing the market's continued confidence in mainstream currencies.

Base, the Ethereum Layer 2 network launched by Coinbase, is built on Optimism's OP Stack.