Crypto Assets Market Weekly Report

Market Overview

This week, the Crypto Assets market has shown a rapid downward trend, with the market sentiment index dropping from 33% to 11%. The market capitalization of stable coins has stagnated, indicating that institutional funds are starting to withdraw. The market's panic sentiment is mainly due to a trading platform experiencing the theft of $1.5 billion in assets, as well as Trump's proposed aggressive tariff policy exacerbating inflation concerns. These factors have reduced the likelihood of the Federal Reserve lowering interest rates, increasing worries about a recession in the U.S. economy, which has had a severe impact on market sentiment. The overall market has plunged into extreme panic, with most coins underperforming the benchmark index.

Next Week's Predicted Targets

Bullish Targets: LTC, S, SOSO, BERA

LTC: This week, it rose 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 on the custody trust and clearing company system, and the market has high expectations for its approval. It is expected that before the official approval is granted, the market will continue to speculate on this event.

S: Sonic has recently entered the Defi field, attracting a large number of users and funds through high APY from on-chain projects. Its main liquidity staking project has a maximum APY of 123%, with an average borrowing interest rate of 10.21%, allowing users to earn over 20% returns. This has driven the price of S tokens to rise against the trend, creating a virtuous cycle.

SOSO: The SoSoValue project closely follows market trends, shifting from AI to the high-yield Defi sector. Recently, it launched the second season of mining activities, where users can stake SSI index tokens to mine SOSO, with a maximum APY of 42%, attracting more users to participate and enhancing the bullish outlook for the SOSO token.

BERA: Berachain rapidly adjusted the on-chain LSD project yield, with a maximum APY of 123%. The lending interest rate reached 23.68%, allowing users to obtain a 100% risk-free annualized return. This strategy successfully curbed the downward trend and drove up the price of BERA tokens.

Bearish targets: ETH, SOL, ADA, AI, TKO, RUNE

ETH: The theft of 491,000 ETH from a certain exchange has raised market concerns. Although the exchange has replenished the stolen funds, market sentiment has yet to recover. Additionally, vulnerabilities in safe technology have raised questions about the security of the Ethereum ecosystem. The Pectra upgrade is about to go live on the testnet, but it has failed to inject upward momentum into ETH prices, and a correction is expected after the upgrade.

SOL: The decline of the Meme coin craze affects the Solana ecosystem. The on-chain TVL has dropped from $12.1 billion to $7.3 billion, with trading volume significantly decreasing by 93.23%. The upcoming unlocking of 11.2 million SOL may exacerbate selling pressure, further intensifying market panic.

ADA: The TVL on the Cardano chain has significantly decreased by 26.88%, dropping to $308 million. The TVL of ecological projects has generally fallen by over 10%, with on-chain funds quickly flowing out. DEX trading volume has decreased by more than 68%, and lending rates have dropped to 3.29%, far below the levels of other public chains. If on-chain funds continue to flow out, the price of ADA may continue to decline.

AI: The AI and Gamefi sectors where Sleepless AI is located have experienced significant pullbacks. The market has lost interest in the Play to earn model of Gamefi, and the valuations of AI projects are generally considered high. AI is about to unlock 17.27 million tokens, accounting for 1.73% of the circulation, and a decline is expected shortly after the unlocking.

TKO: As the largest Crypto Assets exchange token in Southeast Asia, it is affected by the theft incident of a certain exchange. 100 million coins are about to be unlocked, accounting for 2.02% of the circulation. The unlocking may trigger a decline.

RUNE: THORChain briefly rose due to the inflow of stolen funds. However, after the market exposed its potential involvement in money laundering, the developers announced their departure. It is expected to decline next week as trading volume decreases and market sentiment towards its FUD intensifies.

Market Sentiment Index Analysis

The market sentiment index has dropped from 33% last week to 11%, overall nearing the extreme panic zone.

Hot Tracks

Sonic

In recent weeks, the TVL of the Sonic chain has maintained rapid growth, with a growth rate of 10.32% this week, reaching 683 million USD. Its token S has risen by 7.63%, performing well amidst the market downturn. Sonic is shifting its focus to DeFi, adopting high APY strategies to attract users, with on-chain projects offering up to 123% APY. In the future, attention should be paid to whether its economic flywheel can continue to operate efficiently and the trend of on-chain APY changes.

Berachain

This week, Berachain's TVL increased by 4.66%, reaching $3.194 billion, ranking sixth. Its token BERA rose by 7.26%. The on-chain main LSD project has an APY peaking at 190.12%, with a lending rate of 23.68%, attracting a large number of users to participate. However, Berachain needs to be cautious of the long-term risks that high-interest rate models may bring, and in the future, should pay attention to the emergence of new on-chain projects and changes in LSD project interest rates.

Overall Market Overview

This week, the Sociafi track performed the best, while the PayFi track performed the worst. In Sociafi, TON and CHZ had relatively small declines, while in PayFi, XRP, LTC, and XLM had larger declines, resulting in the overall performance difference.

Next Week's Major Crypto Events Preview

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

Summary

This week, the Crypto Assets market has experienced a significant decline, and investor sentiment is low. A few projects are attracting users through high-yield strategies, but long-term development still requires attention. Investors are advised to closely monitor market dynamics and operate cautiously.