Crypto Market Weekly Report: Highlights and Concerns in the Fall

Market Overview

This week, the crypto market has shown a rapid fall trend, with the market sentiment index dropping from 33% to 11%. The market capitalization of stablecoins has stagnated, indicating that institutional funds are beginning to withdraw. The panic in the market is mainly due to a hack on a trading platform that resulted in a loss of $1.5 billion in assets, as well as inflation concerns triggered by Trump's aggressive tariff policies, lowering expectations for interest rate cuts by the Federal Reserve and intensifying worries about an economic recession. The overall market has fallen into extreme panic, with alternative coins generally underperforming the benchmark index.

Next Week's Predicted Targets

Bullish targets: LTC, S, SOSO, BERA

LTC has risen against the trend this week, mainly benefiting from the market's increased expectations for the approval of the LTC ETF. A certain asset management company has submitted a spot LTC ETF that has been listed in the DTCC system, and the market expects a high probability of approval, which will continue to fuel speculation around this event.

The S token benefits from a certain public chain's expansion into the DeFi field, with on-chain projects offering high APY attracting a large number of users and funds. The APY of the main liquidity staking projects reaches as high as 123%, and the borrowing interest rate is 10.21%. Users can obtain a 20%+ risk-free return, driving an increase in demand for the S token and a rise in its price.

The SOSO project team has adjusted its development direction, shifting from AI investment services to a wealth management service center, launching a high APY mining activity. Users who stake SSI index tokens can earn up to 42% APY, attracting more participants and enhancing bullish expectations.

BERA has shown strong performance amid the overall fall, as the project team attracts users by increasing the on-chain LSD project yield. A certain LSD project, WBERA, has an APY of 123%, with a lending rate of 23.68%, allowing users to achieve 100% risk-free returns, which promotes the rise in the price of BERA tokens.

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

ETH is affected by the theft incident at a certain exchange, leading to concerns about selling pressure in the market. At the same time, the Safe technology vulnerability has raised ecological security risks, and Pectra may face a correction after the upgrade is implemented.

A large amount of funds has flowed out of the SOL chain, with TVL dropping from $12.1 billion to $7.3 billion, and trading volume falling by over 93%. A total of 11.2 million tokens are about to be unlocked, which may exacerbate the selling pressure.

The TVL on the ADA chain has significantly decreased by 26.88%, with ecological projects all falling over 10%, and funds rapidly flowing out. The on-chain DEX trading volume has dropped by 68%, borrowing demand is sluggish, and ecological activity has declined.

The valuation of AI projects is relatively high, and the overall track is in a correction trend. A total of 17.27 million tokens will be unlocked soon, accounting for 1.73% of the circulating supply, which may trigger a fall in the short term.

TKO is negatively affected by the theft incident at a certain exchange. 100 million tokens will soon be unlocked, accounting for 2.02% of the circulation, and there may be selling pressure after the unlock.

RUNE initially rose due to hackers using it for money laundering, but after the developer's departure, trading volume may decline. Coupled with market concerns about its alleged involvement in money laundering, this could trigger a continued fall.

Market Sentiment Index Analysis

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

Hot Tracks

a certain public chain

Recently, the TVL of this public chain has maintained rapid growth, increasing by 10.32% this week to $683 million, making it the only chain among those with a TVL exceeding $50 million to maintain a growth rate of over 10%. The native token rose by 7.63% this week, performing outstandingly amidst the market decline.

Its popularity mainly stems from on-chain DeFi projects offering an APY of up to 123%, with lending rates around 10%, attracting users to participate in arbitrage. However, it is important to note that its TVL growth has shown signs of a peak and subsequent decline.

The key to future development lies in maintaining the efficient drive of the economic flywheel, achieving a positive cycle of "staking and locking → liquidity release → DeFi empowerment → token appreciation → user return → re-staking → developer aggregation."

a certain emerging public chain

This week, the chain's TVL increased by 4.66% to $3.194 billion, ranking sixth among public chains in terms of TVL. The price of the native token rose by 7.26%, showing strong performance.

Its popularity stems from the on-chain LSD project that raises APY to 121%-190%, with a lending rate of 23.68%, allowing users to earn 100% risk-free returns, attracting capital inflow.

Future development should also focus on the sustainability of the economic flywheel, as well as whether it can attract more quality projects to settle in, avoiding potential risks brought by solely relying on high interest rate models.

Overall Overview of Market Themes

This week, various sectors generally experienced a fall, with the Sociafi sector performing the best at (-5.02%), while the PayFi sector performed the worst at (-17.55%).

In the Sociafi sector, TON and CHZ account for 95.17%, with a relatively small fall. In the PayFi sector, XRP, LTC, and XLM account for 94.62%, with XRP and XLM having a significant fall, dragging down the overall performance.

Next Week's Crypto Market Major Events Preview

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

Summary

This week, the crypto market has fallen significantly, raising widespread concerns among investors. Some projects are attracting users through high APY strategies, but long-term development still needs to focus on market stability and the emergence of new projects. It is recommended that investors closely monitor market dynamics and act cautiously.