Crypto Assets Market Weekly Report: Stablecoin rise indicates a trend of capital inflow

This week, the Crypto Assets market is generally in a fluctuating 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, representing increases of 0.49% and 2.32%, respectively, indicating that institutional funds are beginning to re-enter, mainly led by the growth of US funds.

Despite recent economic data and the Federal Reserve's statements alleviating concerns about a recession in the U.S. economy, and the market beginning to anticipate three interest rate cuts by the Federal Reserve this year, this has not improved market sentiment. On the contrary, due to the recent fluctuations in policy causing dramatic volatility in Bitcoin prices, market panic has intensified, and most altcoins have underperformed the benchmark index.

Market Hotspot Analysis

Aave performs outstandingly

Aave performed outstandingly this week, with a TVL rise of 5.86%, ranking second among the top twenty DeFi projects. The price of AAVE token increased by 21.38%, showing excellent performance among the top fifty tokens by market capitalization.

The main reason for Aave's popularity:

1. Plan to optimize governance and token economic model, including the launch of a buyback program and the establishment of new mechanisms to enhance staking rewards.
2. The White House supports the abolition of DeFi trading report rules, reducing compliance burdens and encouraging innovation.

Aave, as a benchmark in the DeFi industry, may influence the entire industry's development direction with its initiatives. During the current market downturn, Aave has chosen to attract investors through a dividend growth approach, showcasing its strong financial strength and diversified income structure. This could prompt more DeFi projects to shift towards dividend or buyback models.

Berachain ecosystem continues to rise

Despite the overall market decline, Berachain's TVL still rose by 17.21%, reaching $3.449 billion, ranking sixth among all public chains. Its token BERA price corrected by 12.94%.

The growth of the Berachain ecosystem mainly comes from:

1. The LSD project Infrared Finance maintains the WBERA APY at around 120%.
2. The APY of the DEX project BEX stablecoin pool remains around 16%.
3. The lending project Dolomite offers borrowers a high interest rate of 48.08%.

Berachain attracts users by offering high APY, providing stable returns for users in a volatile market. The key to its development lies in driving a positive economic cycle, forming sustainable growth through "staking and locking → liquidity release → DeFi empowerment → token appreciation → user return → re-staking."

Currently, about 30% of BERA on the Berachain chain is in a staked state, and more BERA may enter staking in the future, reducing circulation, which is beneficial for the development prospects of Berachain.

Important Events Next Week

• March 12: U.S. February CPI year-on-year released
• March 13: Web3 Amsterdam 2025 Conference held

Summary

This week, the Crypto Assets market fluctuated and fell, with low sentiment, but the rise in stablecoins indicates signs of fund inflow. Some projects, such as Aave and Berachain, performed well, demonstrating strong fundamentals and innovative strategies. Future market trends still need to pay attention to macro policies, changes in on-chain data, and the impact of upcoming token unlock events on market sentiment.