Crypto Market Weekly Report: Stablecoin rise indicates fund inflow, but overall sentiment remains in a state of panic.

This week, the cryptocurrency market has shown a trend of fluctuating decline, with the market sentiment index dropping from 11% to 8%. Nevertheless, the market capitalization of stablecoins has started to rise rapidly, with USDT reaching 142.7 billion and USDC reaching 57.2 billion, with increases of 0.49% and 2.32% respectively, indicating that institutional funds are re-entering the market, mainly driven by the growth of US funds. Although recent economic data releases and the Federal Reserve's report have alleviated recession concerns, the market has also begun to expect three interest rate cuts from the Federal Reserve this year, but this has not improved market sentiment. On the contrary, recent policy reversals have triggered significant fluctuations in Bitcoin prices, intensifying market panic, and most alternative coins have performed worse than the benchmark index.

Market Hotspot Analysis

Aave performs outstandingly

Aave performed well this week, with a TVL rise of 5.86%, ranking second among the top 20 DeFi projects. The price of AAVE token increased by 21.38%, standing out among the top 50 tokens by market capitalization. Its popularity mainly stems from two factors:

1. Aave has launched a series of proposals to optimize governance and token economic models, including buyback plans and increased staking rewards.

2. The White House supports the repeal of DeFi trading report rules, easing compliance burdens and encouraging innovation.

As a benchmark in the DeFi industry, Aave's initiatives may influence the development direction of the entire industry. Against the backdrop of a current market lacking innovation, Aave's buyback proposal demonstrates strong cash reserve support and a diversified income structure, gaining market recognition. This may trigger more DeFi projects to shift towards a dividend or buyback model to enhance token value.

Berachain ecosystem continues to rise

Despite the overall market downturn, the Berachain ecosystem continues to maintain a strong growth momentum, with a TVL rise of 17.21%, reaching $3.449 billion, ranking sixth in public chain TVL. Its growth is mainly attributed to the high APY offered by on-chain DeFi projects, such as:

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

These high-yield projects are extremely attractive to investors in the current market environment. Berachain's core strategy revolves around the DeFi track, achieving the goal of "staking as productivity" through the dual drive of staking and liquidity release.

However, the continued rise of the Berachain ecosystem relies on whether new funds can cover the arbitrage selling pressure. Therefore, closely monitoring the APY performance of on-chain DeFi projects is crucial, as it directly reflects the vitality and development potential of the ecosystem.

Market Outlook

Looking ahead to next week, the following aspects are worth paying attention to:

1. Projects like BTC, S, AAVE, and BERA are expected to perform well due to their fundamental advantages or innovative strategies.

2. Projects such as APE, APT, MERL, and TON may face downward pressure, primarily influenced by factors such as token unlocking, capital outflows, or a decline in industry enthusiasm.

3. Important economic data release:

   • March 12: US February CPI Year-on-Year
   • March 13: Web3 Amsterdam 2025 Conference

Overall, although some projects and sectors show positive signals, the market as a whole is still affected by macro uncertainty and insufficient investor confidence. Investors need to continuously pay attention to on-chain data, policy trends, and upcoming unlocking events to seize potential opportunities and avoid risks.