Crypto market sentiment is low; stablecoin rise shows fund inflow.

The cryptocurrency market has shown a volatile downward trend this week, with the market sentiment index dropping from 11% to 8%. The market capitalization of stablecoins has started to rise rapidly, indicating that institutional funds are re-entering the market, primarily driven by U.S. capital growth. Despite economic data and the Federal Reserve's disclosure easing recession concerns, the market expects the Federal Reserve to cut interest rates three times this year starting in May, but policy fluctuations have triggered Bitcoin price volatility, leading to increased market panic, and altcoins generally underperforming the broader market.

Bullish Targets: BTC, S, AAVE, BERA

BTC: After a rapid decline, on-chain data shows that most holders have not sold and have started accumulating, expecting a positive trend next week.

S: The fundamentals of Sonic have not changed, TVL continues to rise by 9.23%, on-chain DeFi activity is high, and APY remains at a high level.

AAVE: Rises against the trend by 21.38%, with a TVL growth rate of 5.86%. Optimizing governance models and token economics, the White House supports easing the compliance burden for DeFi, which is expected to lead the industry into a buyback craze.

BERA: On-chain data is favorable, LSD and DEX projects are experiencing strong growth, and high APY continues to attract investors.

Bearish targets: APE, APT, MERL, TON

APE: The popularity of NFTs and GameFi is declining, and a large-scale unlocking is imminent.

APT: Although there are expectations for an ETF, it is not on the crypto reserve list and is about to unlock.

MERL: TVL has dropped significantly by 12.44%, as funds continue to withdraw from major ecological projects.

TON: TVL decreased by 10.68%, on-chain ecological projects continue to shrink, and the user profit effect weakens.

Hot Track Analysis

Aave plans to optimize ecosystem governance and token economic models through a series of proposals, including repurchasing coins, increasing staking rewards, and optimizing liquidity. The White House supports the repeal of DeFi trading report rules to reduce compliance burdens. Aave is expected to lead a new direction in DeFi dividend rise, but at this stage, its purchase value is lower than MKR.

The growth of LSD and DEX projects in the Berachain ecosystem is strong, with high APY continuing to attract investors. The key to its development lies in maintaining high yields for DeFi projects, driving the economic flywheel in a positive cycle. The BERA staking ratio still has room for growth, and future development is promising.

Market Theme Performance

The PayFi track performed the best, mainly influenced by the surge of XRP. The Sociafi track performed the worst, with major projects like TON experiencing declines.

Important Events Next Week

• March 12, US February CPI year-on-year announced
• The Web3 Amsterdam 2025 conference will be held on March 13.

Overall, the crypto market is still in a state of turbulent panic, but some projects show strong fundamentals. Investors need to continuously monitor on-chain data, policy trends, and unlock events to seize potential opportunities and avoid risks.