Dear Crypto Family,
This week’s market update brings a mix of muted market movement, early indicators of shifting narratives, and continued exploration of AI agents, stablecoins, and emerging DeFi activity.
🧭 Market Overview: Neutral Bias, Weak Momentum
Our proprietary signals remain bearish, but sentiment is marginally improving. The broader market still leans risk-off, with only a few standout tokens showing strong upside performance.
Notably:
Vader AI was a top performer among tokens with bullish signals, having entered with a high trader grade.
Aura is trending across crypto social media as a meme token with a “parabolic” chart pattern — caution is warranted.
Resolve was recently launched and has seen exchange listings, but require further assessment on fundamentals and tokenomics.
📈 Liquidity & Yield: Incentive Campaigns Live
We’ve seen encouraging uptake on the TMAI liquidity incentive campaign across Aerodrome, Uniswap V3, and Balancer. TVL increased from $85k to $117k in just a week on Aerodrome alone. Users can now claim rewards directly via the Merkle dashboard mid-campaign.
APR Highlights:
Uniswap V3: 290% APR (USDC/TMAI pool)
Aerodrome: ~280% APR
Balancer: Up to 300% APR at launch, now stabilizing
Indexing issues on the frontend are being resolved — all rewards remain secure.
🔍 Narratives in Focus: Stablecoins, DeFi Resurgence
Stablecoins are leading this cycle’s narrative momentum:
Resolve claims to be a delta-neutral stablecoin, echoing the mechanics of Ethena, another prominent protocol.
Current APYs: ~6% for USR and ~11% for RLP
Resolve ranks 4th in TVL among basis trading stablecoins and is drawing attention for its model and yield mechanics.
DeFi 2.0 discussions are returning:
There’s renewed investor interest in Morpho, Pendle, and money market integrations.
TVL on blue-chip protocols like Uniswap and Aave remains resilient.
Projects are increasingly combining lending, AMMs, and staking mechanics into unified systems.
🧪 AI Sector Watch: Volatility in Agent Projects
The AI narrative remains strong, though unevenly distributed:
Eliza/AX16Z projects faced X (formerly Twitter) bans due to scraping practices, impacting their agent ecosystem.
Virtuos Protocol has stepped in with stronger execution, launching its Genesis platform on Ethereum.
IRIS, built by the Nethermind team, is positioned as a flagship AI agent launch on Ethereum.
The Ethereum Foundation publicly endorsed the move, suggesting long-term AI integration at the protocol level.
Meanwhile, Virtuals’ Genesis Launchpad has gained traction for its fair token allocation system and potential for outsized returns with relatively small allocations.
🔬 Research Highlights: Deep Dives & Hidden Gems
🔎 Bluefin (Deep Dive)
A DEX on Sui with hybrid order book-AMM architecture.
Despite a price drawdown of ~85%, TVL has nearly doubled since peak.
Investors include Polychain, ParaFi, Defiance Capital.
The team has Meta, Amazon, and Goldman Sachs backgrounds.
💎 Hidden Gems
Axone – AI-focused L1 chain for orchestration, identity, and decentralized compute. Backed by Outlier Ventures. Code score: 85+
Libera – AI-powered retail analytics using receipts and shelf data. Already revenue-positive with PNG and regional MNC partnerships.
KittenSwap – Hyperliquid-based DEX with points campaign; upcoming token airdrop. TVL ~ $44M after a month.
Plasma – Bitcoin-based L2 for stablecoin payments, with backing from Bitfinex and Framework Ventures.
Mubert – AI music generation platform building a Polkadot parachain with tokenized rewards for creators.
💡 Platform Updates & Roadmap
Ratings page enhancements and a “Moonshots” curated signal feed are in development to simplify top trade discovery.
Upcoming integrations: Eliza (agent tooling), Virtuos Protocol (plugin access), and Chainlink (data publishing).
Continued liquidity expansion efforts aim to bring TMAI into money markets (Morpho) and yield platforms (Pendle).
📌 Closing Thoughts
We’re seeing increasing segmentation in the crypto market:
AI agents are growing but face infrastructure and platform risks.
Stablecoin models are becoming more sophisticated, particularly in DeFi-native ecosystems.
Meme coins continue to drive short-term speculative flows, but the fundamentals remain thin.
Institutional-grade DeFi applications (lending + AMM fusions) are regaining developer and user interest.
We’ll continue monitoring both on-chain metrics and signal models for market entries — but for now, we remain cautious with selective optimism.
Until next week,
– The Token Metrics Research Team