Crypto Assets Market Weekly Report: Stablecoin Inflows Indicate Capital Get on Board, Some Hot Tracks Maintain Vitality

This week, the Crypto Assets market has shown a volatile downward trend, with the market sentiment index dropping from 11% to 8%. The market value of stablecoins has seen rapid growth, with USDT reaching $14.27 billion and USDC reaching $5.72 billion, increasing by 0.49% and 2.32% respectively, indicating that institutional funds are getting on board, primarily from U.S. capital. Although economic data and the Federal Reserve's announcements have eased concerns about an economic recession, the market expects the Federal Reserve to cut interest rates three times this year. However, policy fluctuations have triggered Bitcoin price volatility, leading to increased panic in market sentiment, with most altcoins underperforming the benchmark index.

Hot Track Analysis

Aave

Aave performed outstandingly this week, with a TVL growth rate of 5.86%, ranking second among the top 20 DeFi projects. The price of AAVE token increased by 21.38%, showing excellent performance among the top 50 tokens by market capitalization. The main reasons are twofold:

1. Aave proposed a series of optimization proposals, including repurchasing 1 million USD worth of AAVE tokens weekly, increasing staking rewards, improving liquidity management, and more.

2. The White House supports the repeal of DeFi trading report rules, which is expected to reduce compliance burdens and attract capital back.

As a leader in DeFi, Aave's movements may guide the industry's development. The current market lacks innovation, and investors are more focused on actual returns. Aave's buyback proposal demonstrates strong cash reserves and diversified income, which may trigger DeFi projects to shift towards dividend or buyback models. However, AAVE's current price-to-earnings ratio is about 61 times, higher than its comparable project Maker's 21 times, making its cost-performance relatively low.

Berachain

Berachain's TVL increased by 17.21% this week, reaching 3.449 billion USD, ranking sixth among public chains. The LSD project Infrared Finance and the DEX project BEX in its ecosystem saw significant growth, reaching 31.15% and 25.22%, respectively. The Berachain ecosystem attracts users through high APY, with the staking yield of WBERA in Infrared Finance maintaining around 120%.

Berachain adopts a "staking as productivity" strategy, empowering on-chain assets through DeFi to create a positive economic cycle. However, it is important to be cautious of the risk that new funds may not be sufficient to cover the arbitrage selling pressure. Currently, about 30% of BERA on the Berachain is in a staked state, and more BERA may enter staking in the future, reducing circulation.

Market Overview

According to 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 changes of 18.96%, -18.47%, and 6.23%, respectively. In the SocialFi track, TON and CHZ account for 94.39%, with declines of 10.68% and 2.31%, respectively.

Important Events Next Week

• March 12 ( Wednesday ): US February end seasonally adjusted CPI year-on-year announced
• March 13 ( Thursday ): Web3 Amsterdam 2025 event is held.

Summary

This week, the crypto market has shown a complex pattern amid fluctuations. Although stablecoin funds are flowing back and some hot sectors have stable fundamentals, the overall market is still affected by macro uncertainty. Projects like BTC, AAVE, and Berachain are expected to stand out due to their fundamental advantages and innovative strategies. Investors need to continuously pay attention to on-chain data, policy trends, and upcoming unlocking events to seize opportunities and avoid risks.