Crypto Market Weekly Report: Highlights and Shadows in the Storm

Market Overview

This week, the crypto market has shown a rapid decline, with the market sentiment index plummeting to 11%. The market capitalization of stablecoins has stagnated, indicating that institutional funds are starting to withdraw. The panic in the market is primarily due to a large-scale asset theft incident on a trading platform and inflation concerns triggered by Trump's proposed aggressive tariff policies. These factors have reduced the likelihood of an interest rate cut by the Federal Reserve, exacerbating worries about a recession in the U.S. economy, which has had a strong impact on market sentiment. The overall market is in extreme panic, and most tokens are performing poorly.

Underlying Analysis

bullish target

LTC: This week, it rose against the trend, mainly benefiting from the market's increased expectations for the approval of the LTC ETF. The spot LTC ETF proposed by Canary Capital has obtained listing qualification in the DTCC system, and the market has high expectations for its approval.

S: Sonic has recently entered the DeFi sector, attracting a large number of users and funds through high APYs. Its main on-chain liquidity staking project offers up to 123% APY, while the average interest rate on the lending platform is 10.21%, allowing users to obtain yields of over 20%. This high-yield model drives the price of the S token to spiral upwards.

SOSO: The SoSoValue project flexibly adjusts its development direction, shifting from an AI investment platform to a high APY wealth management service center. The recently launched second season mining activity can provide up to 42% APY, attracting more users to participate and enhancing the bullish expectations for the SOSO token.

BERA: The Berachain project team quickly adjusted the staking yield of the on-chain LSD project, raising the APY of WBERA to 123%. The borrowing rate on its lending platform BERA reached 23.68%, allowing users participating in arbitrage to achieve around 100% risk-free annualized returns, effectively curbing the downward trend and turning it into an upward one.

bearish underlying

ETH: A theft incident on a trading platform has raised concerns in the market about ETH. Although the stolen assets have been replenished, the market response has been tepid, indicating that investors still harbor FUD sentiments. Additionally, the Safe technology vulnerability has raised questions about the security of the Ethereum ecosystem, and the Pectra upgrade has failed to boost prices. ETH is expected to potentially decline in the short term.

SOL: The meme coin craze has subsided, and Solana, as a major public chain, has been affected. Its TVL has dropped from $12.1 billion to $7.3 billion, and on-chain transaction volume has significantly decreased. The upcoming large-scale token unlock may exacerbate market selling pressure.

ADA: The TVL on the Cardano chain has dropped significantly to $308 million. The TVL of all on-chain ecosystem projects has decreased by more than 10%, indicating a rapid outflow of funds. The borrowing rate for ADA tokens is sluggish, reflecting a decline in ecosystem participation.

AI: As an AI and Gamefi project, the Sleepless AI sector has seen significant pullbacks. The market's interest in the Play to earn model of Gamefi has declined, and AI project valuations are generally considered too high. The upcoming large-scale token unlock may trigger further declines.

TKO: As the largest encryption currency exchange token in Southeast Asia, it is affected by a theft incident involving a certain trading platform. In addition, it is about to face a large-scale token unlock, and the price is expected to be under pressure in the short term.

RUNE: THORChain has attracted attention due to its alleged involvement in money laundering transactions. The departure of core developers has intensified market concerns, and it is expected that with the decline in trading volume and the spread of market FUD sentiment, the coin price may continue to fall.

Market Sentiment and Hot Tracks

The market sentiment index has dropped to 11%, hovering on the edge of extreme fear. Against this backdrop, Sonic and Berachain have performed well, mainly due to their high APY strategies attracting users. However, the sustainability of this high-yield model is worth noting.

Market Theme Overview

This week, the Sociafi track performed the best, while the PayFi track performed the worst. Overall, various tracks generally showed a downward trend, reflecting the market's widespread pessimistic sentiment.

Important Events Next Week

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

Summary

This week, the crypto market experienced a significant decline, causing widespread concern among investors. A few projects are attracting users through high-yield strategies, but their long-term stability is questionable. Investors are advised to closely monitor market dynamics and operate cautiously.