Crypto Market Weekly Report: Stablecoin Rise Indicates Capital Inflow, Sentiment Remains Low

Market Overview

This week, the cryptocurrency market has shown a trend of fluctuation and decline, with the market sentiment index dropping from 11% to 8%. The market capitalization of stablecoins has experienced a rapid rise, with USDT reaching 142.7 billion and USDC reaching 57.2 billion, with an increase of 0.49% and 2.32% respectively, indicating that institutional funds are re-entering the market, primarily driven by the growth of U.S. funds. Although the release of economic data and the Federal Reserve's statements have alleviated recession concerns, market sentiment has not shown significant improvement. Recent policy fluctuations have caused volatility in Bitcoin prices, intensifying market panic, with most altcoins underperforming the overall market.

Hot Tracks

Aave

Aave performed outstandingly this week, with a TVL rise of 5.86%, ranking second among the top 20 DeFi projects. The price of the AAVE token increased by 21.38%, showing remarkable performance among the top 50 tokens by market cap. Main reason:

1. Aave plans to optimize governance and the token economic model, including a weekly repurchase of $1 million AAVE, increasing staking rewards, and more.

2. The White House supports the abolition of DeFi trading reporting rules, which is expected to reduce compliance burdens and stimulate innovation.

As a leader in DeFi, Aave's initiatives may lead the development of the industry. The current market focuses on real yields, and Aave's buyback plan demonstrates financial strength and value creation capability, which is expected to drive more DeFi projects towards a dividend or buyback model.

Berachain

Berachain's TVL rose by 17.21% this week, reaching $3.449 billion, ranking sixth among public chains. The increase mainly comes from the LSD project Infrared Finance and the DEX project BEX, which grew by 31.15% and 25.22%, respectively. High APY is the main reason attracting users.

• Infrared Finance: WBERA staking APY is approximately 120%
• BEX: The stablecoin pool APY is about 16%
• Dolomite: Lending interest rate up to 48.08%

Berachain attracts users through high returns, driving the growth of the ecosystem economy. However, attention must be paid to whether the new funds can cover the arbitrage selling pressure, as well as the changes in APY and TVL, which are key indicators reflecting the vitality of the ecosystem. Currently, the on-chain BERA staking ratio is about 30%, leaving room for growth, and future development is worth looking forward to.

Market Theme Overview

According to the weekly return rate statistics, the PayFi track performed the best, while the SocialFi track performed the worst.

In the PayFi track, XRP, LTC, and XLM account for 95.07%, with price fluctuations of 18.96%, -18.47%, and 6.23%, respectively.

In the SocialFi sector, TON and CHZ account for 94.39%, with declines of -10.68% and -2.31%, respectively.

Major Events Forecast for Next Week

• March 12 ( Wednesday ): US February CPI year-on-year announcement
• March 13 ( Thursday ): Web3 Amsterdam 2025 event held

Summary

This week, the crypto market experienced a turbulent decline, with sentiment being low. Despite the inflow of funds into stablecoins and some hot projects performing steadily, the overall market is still affected by macro uncertainties. In the future, projects like BTC, AAVE, and Berachain are expected to become highlights, and investors need to continuously pay attention to on-chain data, policy trends, and unlocking events to seize opportunities and mitigate risks.