Crypto Assets Market Weekly: Opportunities and Challenges in the Falling Trend

Recently, the overall Crypto Assets market has shown a significant fall trend, with the market sentiment index plummeting from 33% to 11%. The market capitalization growth of major stablecoins has stagnated, indicating a slowdown in institutional capital inflow and signs of withdrawal. The market panic is mainly derived from a major security incident on a trading platform and Trump's tariff policy, which has intensified investors' concerns about inflation and economic recession. Most altcoins have performed below the benchmark index.

Projects Worth Attention

bullish expectations:

• LTC: Rising against the trend, mainly benefiting from the market's increased expectations for its ETF approval.
• S: The Sonic project is expanding into the DeFi space, attracting a large number of users and funds with high yields.
• SOSO: The SoSoValue project flexibly adjusts its development direction and launches high-yield mining activities.
• BERA: Berachain quickly curbs the fall trend by increasing on-chain project yields.

bearish expectations:

• ETH: Due to a security incident on a certain trading platform, there are concerns in the market.
• SOL: Large-scale outflow of funds on the chain, TVL and trading volume have significantly decreased.
• ADA: The TVL of the Cardano ecosystem has fallen significantly, and user participation has decreased.
• AI: The valuation of the sector where Sleepless AI is located is generally high, facing unlocking pressure.
• TKO: Affected by security incidents at the exchange, it is about to face a large-scale unlocking.
• RUNE: The departure of THORChain developers and market doubts about its existence may trigger a fall.

Hot Track Analysis

Sonic Chain

Sonic chain has recently maintained rapid growth in TVL, reaching 683 million USD. Its success is mainly attributed to high APY strategies that attract users to participate in DeFi activities. However, it is important to be cautious of the risks of token price fluctuations that may arise from user arbitrage behavior.

Berachain

Berachain maintains TVL growth of $3.194 billion amidst the overall market fall. The high yields offered by its on-chain projects successfully attract user funds. However, long-term development still requires attention to the emergence of new projects and the construction of a sustainable ecosystem.

Market Theme Overview

This week, the Sociafi track performed the best, while the PayFi track performed the worst. In Sociafi, the fall of TON and CHZ was relatively small, while in PayFi, the fall of XRP and XLM was significant.

Important Events in the Coming Week

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

Summary

Despite the overall market fall, some projects continue to grow through innovative strategies. Investors should closely monitor market trends and carefully assess the long-term development potential of each project.