Crypto Assets Market Weekly Report: Highlights and Concerns in a Falling Trend

This week, the Crypto Assets market has shown a rapid fall, with the market sentiment index plummeting from 33% to 11%. The market capitalization of stablecoins has stagnated, indicating that institutional funds are beginning to withdraw. The panic in the market mainly stems from a large-scale asset theft at a trading platform and inflation concerns triggered by Trump's tariff policies. These factors have intensified worries about a recession in the US economy, causing a strong impact on market sentiment. Overall, the market is in extreme panic, and most tokens are performing poorly.

Projects to Watch Next Week

Bullish Expectations:

1. LTC: Rising against the trend, mainly benefiting from the market's heightened expectations for the approval of the LTC ETF. A spot LTC ETF proposed by a certain capital has already been listed in the relevant system, and the market has high expectations for its approval.

2. S: Sonic has recently entered the DeFi space, attracting a large number of users and funds through high APY. Its main on-chain liquidity staking project offers up to 123% APY, with lending rates around 10%, allowing users to achieve returns of over 20%. This high-yield model drives the price of the S token to spiral upwards.

3. SOSO: SoSoValue flexibly adjusts its development direction, shifting from an AI investment platform to high APY financial services. Recent mining activities launched can reach up to 42% APY, attracting more users to participate and enhancing the market's bullish expectations for SOSO tokens.

4. BERA: Berachain enables participants to achieve approximately 100% risk-free annual returns by increasing the on-chain LSD project's staking yield (up to 123% APY) and lending interest rate (23.68%), effectively curbing the fall trend and turning it into an upward trend.

bearish expectations:

1. ETH: After a large-scale ETH theft incident at a trading platform, the market has concerns about ETH. At the same time, vulnerabilities have emerged in the widely used safe technology within the Ethereum ecosystem, raising security risks. In addition, the upcoming Pectra upgrade has not injected enough momentum into the ETH price.

2. SOL: The meme coin craze has faded, leading to a large-scale withdrawal of funds from the Solana chain. TVL has decreased from $12.1 billion to $7.3 billion, and on-chain trading volume has significantly declined. The upcoming token unlock may exacerbate the selling pressure.

3. ADA: The TVL on the Cardano chain has significantly fallen to $308 million. Ecological projects generally experienced a TVL decline of over 10%, and on-chain transaction volume has plummeted, indicating a loss of confidence among users in the ecosystem.

4. AI: The AI and GameFi sectors have seen significant corrections during this round of fall. Sleepless AI is about to face token unlock, accounting for 1.73% of the current circulation, which may trigger a short-term decline.

5. TKO: As a major Crypto Assets exchange token in Southeast Asia, it is affected by a theft incident involving a certain trading platform. The tokens set to be unlocked account for 2.02% of the circulating supply, and the unlocking may trigger a fall.

6. RUNE: THORChain briefly rose due to the inflow of stolen funds, but as money laundering activities were exposed and core developers left, trading volume is expected to decrease and the coin price may continue to fall.

Market Sentiment Analysis

The market sentiment index has dropped from 33% last week to 11%, approaching the extreme fear zone.

Hot Track Analysis

Sonic Ecosystem

The TVL of the Sonic chain has been continuously growing at a high speed recently, increasing by 10.32% this week to reach 683 million USD, making it one of the few public chains that maintain capital inflow in a market with significant falls. Its token S rose by 7.63% this week, although the increase is not large, it stands out against the backdrop of the overall market decline.

The key to Sonic's success lies in shifting its focus to DeFi, adopting high APY strategies to attract users. On-chain main liquidity projects offer up to 123% APY, with lending rates around 10%, allowing users to achieve arbitrage returns of over 100%. This high-yield model significantly increased user demand for S tokens.

However, the challenge faced by Sonic is how to maintain the sustainability of the economic flywheel. It is necessary to pay attention to the changes in the on-chain project APY to determine whether its development momentum is sustainable. It is worth noting that although Sonic's TVL has generally increased, there are already signs of a peak followed by a fall.

Berachain ecosystem

Berachain's TVL rose slightly by 4.66% this week, reaching $3.194 billion, ranking sixth among public chain TVLs. Its token BERA increased by 7.26%, showing relatively strong performance.

Berachain attracts users by increasing the on-chain DeFi project APY. The main LSD projects offer a maximum of 121%-190% APY, with lending rates reaching 23.68%, allowing users to achieve approximately 100% risk-free annual returns. This strategy effectively curbs the fall trend.

However, Berachain faces challenges similar to those of Sonic. While the high interest rate model can promote ecological development and token appreciation in the short term, it may face increased selling pressure in the long term. In the future, attention should be paid to whether new star projects emerge on the chain, as well as whether the interest rates of LSD projects decline significantly.

Market Theme Overview

This week, various sectors generally experienced a fall, among which:

• Sociafi track performed best, weekly return rate -5.02%
• The PayFi sector performed the worst, with a weekly return rate of -17.55%

Important Events Next Week

• March 3: US February ISM Manufacturing PMI released
• March 5: US February ADP employment numbers released; Ethereum testnet launches Pectra network upgrade
• March 7: U.S. February non-farm payroll data and unemployment rate released

Summary

This week, the Crypto Assets market experienced a significant fall, and investors are generally feeling worried. Nevertheless, some projects are attracting users through high-yield strategies, but in the long run, market stability and the emergence of new projects will be key. Investors are advised to closely monitor market dynamics and proceed with caution.