Crypto Market Weekly Report: Highlights and Concerns in Turmoil

This week, the crypto market has shown a sharp downward trend, with the market sentiment index plummeting from 33% to 11%. The stagnation in the market cap of stablecoins indicates that institutional funds are starting to withdraw. The market panic mainly stems from a large-scale asset theft incident at a trading platform, as well as inflation concerns triggered by the tariff policy proposed by Trump, which has reduced the likelihood of interest rate cuts by the Federal Reserve and intensified market fears of an economic recession. Overall market sentiment has plunged into extreme panic, with most altcoins performing poorly.

Market Highlights

Despite the overall unfavorable environment, some projects are still rising against the trend:

• LTC: Strong performance due to increased market expectations for its ETF approval.
• S: Sonic attracts a large number of users and funds with high APY, driving up the token price.
• SOSO: The SoSoValue project flexibly adjusts its strategy and launches high-yield mining activities.
• BERA: Berachain attracts users by increasing the yield of on-chain projects.

Market Concerns

Some projects face downward pressure:

• ETH: A theft incident on a trading platform has raised security concerns, and the technical upgrade has failed to boost the price.
• SOL: The meme coin craze has subsided, and a large amount of funds are flowing out of the chain.
• ADA: The TVL of the Cardano ecosystem has significantly decreased, and user participation has dropped.
• AI: The valuation of AI and the Gamefi sector is relatively high, facing pullback pressure.
• TKO: The exchange token is influenced by market sentiment.
• RUNE: Facing pressure due to money laundering rumors.

Hot Track Analysis

Sonic and Berachain

Both projects use high APY strategies to attract users, driving on-chain TVL and token price growth. However, the sustainability of this model is questionable, and the key to future development lies in:

1. Ability to maintain high yield rate
2. Can the capital inflow from new users cover the arbitrage selling pressure?
3. Can the on-chain ecosystem incubate high-quality projects?

Market Theme Overview

Performance of each track this week:

• Sociafi performed the best, with a weekly return rate of -5.02%
• PayFi performed the worst, with a weekly return rate of -17.55%

Important Events Next Week

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

Summary

The overall market is in a downward trend, but some projects are still maintaining growth through high-yield strategies. However, the sustainability of this growth model is worth noting. Investors should closely monitor market dynamics and act with caution.