Crypto Assets Market Weekly: Highlights and Concerns in a Falling Trend

Market Overview

This week, the Crypto Assets market is in a rapid fall trend, with the market sentiment index dropping from 33% to 11%. The market capitalization of major stablecoins has stagnated, indicating signs of institutional funds starting to exit. The market panic is mainly due to a large-scale asset theft from a certain trading platform and the aggressive tariff policies proposed by Trump. These factors have exacerbated concerns about inflation, lowered expectations for Federal Reserve interest rate cuts, and increased worries about a recession in the U.S. economy, thus having a strong impact on market sentiment. The overall market has plunged into extreme panic, with most coins performing worse than the benchmark index.

Positive Target Analysis

LTC: This week has risen against the trend, mainly benefiting from the market's increased expectations for its ETF approval. Data shows that the spot LTC ETF has qualified for listing on relevant systems, and market expectations for its approval are high.

S: Sonic has recently entered the DeFi space, attracting a large number of users and funds through high APY. Its main on-chain liquidity staking project offers an APY of up to 123%, attracting users to participate in lending activities and driving a spiral increase in the price of S coin.

SOSO: The SoSoValue project flexibly adjusts its development direction, shifting from AI investment services to a DeFi wealth management center. The recently launched mining activity can provide up to 42% APY, attracting users to participate and enhancing the bullish expectations for SOSO coin.

BERA: Berachain attracts users and funds by increasing the on-chain LSD project's staking yield (up to 123%). Its strategy is similar to Sonic, enhancing market demand for the BERA token through high APY, promoting price increase.

Bearish Asset Analysis

ETH: Following a theft incident on a certain trading platform, the market still harbors panic over ETH. Meanwhile, the safe technology vulnerability has raised concerns about the security of the Ethereum ecosystem. The upcoming Pectra upgrade has failed to inject sufficient momentum into ETH prices, and a pullback is expected after the upgrade.

SOL: Influenced by the retreat of the Meme coin frenzy, a large amount of funds has flowed out of the Solana chain, resulting in a significant decline in both TVL and trading volume. The upcoming token unlock may bring additional selling pressure, exacerbating the market's panic sentiment towards SOL.

ADA: The TVL on the Cardano chain has significantly decreased, and ecological projects are generally experiencing capital outflows. On-chain transaction volume and lending activities have notably reduced, indicating a lack of user confidence in the Cardano ecosystem.

AI, TKO, RUNE: These projects are affected by specific factors such as overvaluation in the AI sector, negative sentiment impacting exchange tokens, and controversies involving money laundering, and they are expected to face downward pressure in the short term.

Market Sentiment and Hot Tracks

The market sentiment index has fallen to 11%, on the edge of the extreme fear zone. Emerging public chains such as Sonic and Berachain are attracting users and funds by offering high APY, standing out in the overall market downturn. However, the sustainability of this high interest rate model is worth noting.

Important Events Next Week

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

Overall, the crypto market experienced a significant fall this week, and investors are generally feeling worried. Although some projects are attracting users through high-yield strategies, the long-term stability of the market still needs to be observed. Investors are advised to closely monitor market dynamics and operate cautiously.