Crypto Market Weekly Report: Highlights and Shadows in the Falling Trend

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 basically stagnated, indicating that as the market experiences severe declines, institutional funds are starting to withdraw. The panic in the market is mainly due to a large-scale asset theft at a trading platform and Trump's aggressive tariff policies, which have heightened concerns about inflation and economic recession, resulting in a strong impact on market sentiment. The overall market has fallen into extreme panic, with most tokens performing worse than the benchmark index.

Next Week's Predicted Targets

Bullish targets: LTC, S, SOSO, BERA

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 has been listed in the DTCC system, and the market has high expectations for its approval, anticipating that this event will continue to be speculated before the official approval.

S:Sonic has recently entered the DeFi space, attracting a large number of users and funds through high APY. Its main on-chain liquidity project has an APY of up to 123%, allowing users to earn over 20% risk-free returns. The increased demand for S tokens drives up the price, creating a positive feedback loop.

SOSO: SoSoValue flexibly adjusts its development direction to establish itself as a wealth management service center. Recently launched the second season of its mining activity, where users can stake SSI to earn up to 42% APY, attracting more users to participate and enhancing SOSO's bullish expectations.

BERA: Berachain quickly adjusts the on-chain LSD project yield, reaching up to 123%. Users can obtain a 100% risk-free annual return, effectively curbing the fall trend and turning it into an upward trend. The high APY strategy increases the demand for BERA, promoting price growth.

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

ETH: The market still has FUD sentiment towards ETH after the hacking incident of a certain trading platform. Safe technology vulnerabilities have raised concerns about the security of the Ethereum ecosystem. The Pectra upgrade failed to inject momentum into the ETH price, and a correction may occur after the upgrade.

SOL: The wave of Meme coins retreating has impacted Solana's performance. There has been a large outflow of on-chain funds, with TVL and trading volume significantly decreasing. A large-scale unlocking is about to occur, which may intensify selling pressure and exacerbate market panic.

ADA: The TVL on the Cardano chain has fallen significantly, and ecological projects are generally experiencing capital outflows. On-chain trading activity has decreased, and lending rates are relatively low, indicating insufficient user participation. It is expected that the continued outflow of on-chain funds will lead to a further fall in ADA.

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, and AI project valuations are generally high. A large-scale unlocking is imminent, which may face downward pressure in the short term.

TKO: As a large trading platform token in Southeast Asia, it is affected by a certain exchange hacking incident. A large number of tokens are about to be unlocked, with a high unlocking ratio, and a fall is expected after the unlock.

RUNE: THORChain is suspected of being used for money laundering transactions, and the core developer has announced their departure. With the expected decrease in trading volume and the market's exacerbation of FUD sentiment, the coin price is likely to continue to fall.

Market Sentiment Index Analysis

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

Hot Tracks

Sonic

The TVL of Sonic Chain continues to grow rapidly, increasing by 10.32% this week to reach $683 million, with the token S rising by 7.63%. This is mainly due to on-chain DeFi projects offering up to 123% APY, attracting a large number of users to participate in arbitrage.

The future development depends on the efficient drive of the economic flywheel, and attention should be paid to the changes in on-chain APY to assess the driving force of ecological development. However, it is important to note that there are already signs of a peak and subsequent decline in TVL growth.

Berachain

This week, the TVL increased slightly by 4.66% to $3.194 billion, ranking sixth among public chains. The token BERA rose by 7.26%. This is mainly due to the on-chain LSD projects raising the APY to 190%, attracting a large influx of funds.

The future development faces challenges similar to Sonic, requiring attention to the emergence of new projects and changes in on-chain APY. The high interest rate model promotes ecological development in the short term, but its long-term sustainability is questionable.

Overall Overview of Market Themes

This week, the Sociafi sector performed the best, while the PayFi sector performed the worst.

In the Sociafi sector, TON and CHZ have a large proportion, with a relatively small fall. In the PayFi sector, XRP, LTC, and XLM have a large proportion, among which XRP and XLM have a large fall that drags down the overall performance.

Next Week's Crypto Market Major Events Preview

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

Summary

This week, the crypto market has fallen sharply, and investor sentiment is pessimistic. A few projects have risen against the trend through high APY strategies, but their long-term sustainability is questionable. Investors are advised to closely monitor market dynamics and proceed with caution.