Crypto Assets Market Weekly Report: Highlights and Shadows in the Fall

This week, the Crypto Assets market has entered a rapid fall trend, with the market sentiment index plummeting from 33% to 11%. The market capitalization of stablecoins has basically stagnated, indicating that institutional funds are beginning to withdraw. The market panic is mainly due to a large-scale asset theft incident at a certain trading platform, as well as the aggressive tariff policy proposed by Trump, which has exacerbated inflation concerns, reduced the likelihood of interest rate cuts by the Federal Reserve, and heightened worries about a recession in the U.S., causing a strong impact on market sentiment. Overall market sentiment has plunged into extreme panic, with most altcoins underperforming the benchmark index.

Bullish Targets for Next Week

LTC: This week it has risen against the trend, mainly benefiting from the market's increased expectations for the approval of the LTC ETF. The spot LTC ETF proposed by a certain capital company has already been listed in the custody trust and settlement company system, and the market's betting on its approval has reached 87%. It is expected that the market will continue to hype this event before the official approval.

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 lending interest rate of 10.21%, allowing users to gain 20%+ risk-free returns. This has attracted more users to participate, pushing up the demand for S tokens, resulting in a spiraling upward trend.

SOSO: The SoSoValue project is timely adjusting its development direction, shifting from an AI investment platform to a high APY wealth management service center. Recently, the second season of mining activities was launched, allowing users to stake SSI index tokens to mine SOSO, with a maximum APY of 42%, attracting more users to participate and enhancing the bullish expectations for the SOSO token.

BERA: Although it initially fell with the market, Berachain quickly adjusted the yield of its on-chain LSD project, reaching a maximum APY of 123% and a lending rate of 23.68%, allowing arbitrage users to earn a 100% risk-free annual return. This strategy quickly curbed the downward trend and shifted to an upward trend.

Next week's fall targets

ETH: A large-scale theft of ETH has occurred at a certain exchange, and although it has been compensated, it has not been reflected in the price, indicating that FUD sentiment still exists in the market. At the same time, vulnerabilities in safe technology have raised concerns about the security of the Ethereum ecosystem. The Pectra upgrade is about to go live on the test network, but it has failed to inject sufficient upward momentum into ETH, and a pullback is expected after it goes live.

SOL: The wave of Meme coins has receded, affecting the Solana ecosystem, with a significant outflow of funds on-chain, leading to a substantial decrease in TVL and trading volume. A large-scale token unlock is approaching, which may create sustained selling pressure and exacerbate market panic.

ADA: The TVL on the Cardano chain has significantly fallen, with all ecological project TVLs dropping over 10%, indicating a rapid outflow of funds. The on-chain DEX trading volume has decreased by more than 68%, and lending rates are sluggish, with expectations of further declines next week.

AI: The AI and GameFi sectors where Sleepless AI operates have seen significant retracements during this round of falls. The market's interest in the Play to earn model has waned, and AI project valuations are generally high. A large-scale token unlock is imminent, and a decline is expected in the short term.

TKO: As the largest Crypto Assets exchange token in Southeast Asia, it is affected by a hacking incident involving a certain exchange. A large number of coins are about to be unlocked, accounting for 2.02% of the current circulation, and a fall is expected after the unlocking.

RUNE: THORChain briefly rose due to hackers using its platform for money laundering, but with the exposure of the incident and the departure of developers, it is expected to continue falling next week as trading volume decreases and market FUD sentiment persists.

Market Sentiment Index Analysis

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

Hot Tracks

Sonic

The TVL of the Sonic chain continues to grow at a high speed, increasing by 10.32% this week to reach 683 million USD, making it one of the few public chains to see continuous capital inflow during a downturn. Its token S rose by 7.63% this week; although the increase is not high, it shows a rise amidst the market collapse, indicating market recognition.

Sonic has recently shifted its focus to DeFi, adopting high APY strategies to attract users. Major on-chain projects can offer up to 123% APY, with lending rates around 10%, allowing users to achieve 100%+ arbitrage APY. This is highly attractive in the current market environment, prompting users to participate actively and increasing the demand for S tokens.

The key to future development lies in maintaining the efficient drive of the economic flywheel, achieving a positive cycle of staking lock-up, liquidity release, DeFi empowerment, token appreciation, and user return. Attention should be paid to on-chain APY changes to determine whether the Sonic ecosystem continues to possess development momentum.

Berachain

This week, Berachain's TVL increased by 4.66%, reaching $3.194 billion, ranking sixth among public chain TVLs. Its token BERA price rose by 7.26%, performing strongly among altcoins.

The main LSD project of the Berachain ecosystem has increased the APY of WBERA to 121%, while emerging projects have even reached 190.12%. At the same time, the lending rate for BERA is 23.68%, allowing arbitrage users to obtain 100% risk-free annualized returns, effectively curbing the falling trend.

The development path of Berachain is similar to that of Sonic, and the challenges faced are also similar. In the short term, a high-interest rate model can promote rapid ecological development and an increase in token prices, but in the long run, it may face increasing selling pressure. In the future, attention should be paid to whether new star projects emerge on-chain and whether the interest rates of LSD projects decline significantly.

Overall Overview of Market Themes

This week, various sectors generally fell, with the Sociafi sector performing the best and the PayFi sector performing the worst.

In the Sociafi sector, TON and CHZ account for 95.17%, with a relatively small fall, driving the overall performance of the sector.

In the PayFi track, XRP, LTC, and XLM account for 94.62%. The significant fall of XRP and XLM has resulted in the worst performance for the entire track.

Important Events Next Week

• March 3: US February ISM Manufacturing PMI
• March 5: U.S. February ADP Employment Numbers; Pectra Network Upgrade Launches on Ethereum Testnet
• March 7: U.S. February non-farm payroll data and unemployment rate

Summary

This week, the Crypto Assets market has fallen sharply, causing widespread concern among investors. Some projects are attracting users through high APY strategies, but long-term stability still needs to be observed. Investors are advised to keep a close eye on market dynamics and operate cautiously.