Crypto market trend analysis for this week

This week, the cryptocurrency market has shown a rapid decline trend, with the market sentiment index dropping from 33% to 11%. The market capitalization of stablecoins has stagnated, indicating that institutional funds are starting to withdraw. The panic in the market is mainly due to a large-scale theft of assets from a certain trading platform and the inflation concerns triggered by Trump's proposed aggressive tariff policy, which has lowered expectations for interest rate cuts by the Federal Reserve and heightened fears of an economic recession. Overall market sentiment has fallen into extreme panic, with most crypto assets performing worse than the benchmark index.

Analysis of Investment Opportunities Next Week

bullish underlying

LTC: This week, it has risen against the trend, mainly benefiting from the market's increased expectations for its ETF approval. The spot LTC ETF has been listed in the relevant system, and the market assesses the probability of its approval as relatively high, expecting continued speculation in the short term.

S:Sonic has recently laid out plans in the DeFi field, attracting a large number of users and funds through high yield rates. Its main on-chain liquidity mining project offers an APY of up to 123%, with an average lending rate of 10.21%, allowing users to earn over 20%. This has driven an increase in demand for S tokens and a rise in prices, creating a virtuous cycle.

SOSO: SoSoValue keenly grasps market trends, transforming from AI investment services to a high-yield wealth management platform. Recently launched a new round of mining activities, users staking SSI index tokens can earn up to 42% APY, attracting more users to participate and boosting expectations for SOSO tokens.

BERA: Berachain quickly adjusts the on-chain LSD project yield, with a maximum APY of 123%, allowing users to obtain 100% risk-free returns. This effectively curbs the downward trend and drives an increase. Berachain employs a high APY strategy to attract users and capital, promoting demand and price increases for the BERA token.

bearish underlying

ETH: Although a certain exchange has compensated for the stolen ETH, there are still concerns about selling pressure in the market. The safe technology vulnerability has raised doubts about the security nature of the Ethereum ecosystem. The upcoming Pectra upgrade has failed to boost prices, and a pullback is expected after its implementation.

SOL: As the hype around Meme coins fades, there has been a significant outflow of funds on the Solana chain, with TVL and trading volume noticeably declining. The upcoming large-scale token unlocks may create selling pressure, intensifying market panic.

ADA: The TVL on the Cardano chain has significantly decreased, and ecological projects are generally declining, showing a lack of user confidence. The on-chain DEX trading volume has sharply reduced, and lending rates are relatively low. If funds continue to flow out, further declines may occur.

AI: The AI sector and Gamefi track where Sleepless AI is located are under significant pressure. The attractiveness of the Gamefi model is declining, and the valuations of AI projects are generally high. A large number of tokens that are about to be unlocked may bring selling pressure.

TKO: As a major exchange token in Southeast Asia, it is affected by the overall negative sentiment towards centralized exchanges. A large number of tokens set to be unlocked may trigger sell-off pressure.

RUNE: THORChain is affected by a hacker money laundering incident, core developers have left, and a decrease in trading volume is expected. The market has doubts about its money laundering suspicions, which may trigger a continuous decline.

Market Sentiment Analysis

The market sentiment index has dropped to 11%, approaching the extreme fear range.

Hot Track Analysis

Sonic

Sonic chain's TVL continues to grow rapidly, increasing by 10.32% this week to $683 million, standing out in a declining market. The S token rose by 7.63%, demonstrating market recognition.

Sonic is shifting to the DeFi track, adopting high APY strategies to attract users. On-chain projects can offer up to 123% APY, stimulating user participation in arbitrage and increasing the demand for S tokens.

The key to future development lies in maintaining the efficient operation of the economic flywheel, achieving a virtuous cycle of staking, liquidity release, DeFi empowerment, and user growth. Close attention should be paid to changes in on-chain APY to assess the momentum of ecological development.

Berachain

Berachain's TVL increased by 4.66% this week, reaching $3.194 billion, ranking sixth. The price of the BERA token rose by 7.26%.

The main on-chain LSD project has an APY of up to 190.12%, with a borrowing rate of 23.68%, providing users with high returns and attracting capital inflows.

Berachain's development path is similar to Sonic, facing the same challenges. Attention should be paid to the emergence of new star projects and changes in LSD project interest rates to assess long-term development potential.

Market Track Performance

This week, the Sociafi track performed the best, while the PayFi track performed the worst. Sociafi benefited from the smaller declines of TON and CHZ, while PayFi was dragged down by the significant drop of XRP.

Important Events Next Week

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

Summary

This week, the crypto market has seen a significant decline, and investor sentiment is pessimistic. A few projects are rising against the trend through high-yield strategies, but long-term development still requires attention to market stability and innovation capabilities. It is advised that investors remain vigilant and operate cautiously.