Crypto Market Weekly Report: Stablecoin Rise Indicates Capital Inflow

This week, the cryptocurrency market showed a volatile downward trend, with the market sentiment index falling to 8%. The market capitalization of stablecoins began to rise rapidly, with USDT and USDC reaching 142.7 billion and 57.2 billion respectively, with increases of 0.49% and 2.32%, indicating that institutional funds are re-entering, mainly driven by the growth of US funds.

Although recent economic data releases and the Federal Reserve's statements have alleviated concerns about a recession in the United States, the market has begun to anticipate three interest rate cuts by the Federal Reserve this year, but this has not significantly improved market sentiment. The policy fluctuations have triggered significant volatility in bitcoin prices, exacerbating market panic, and most altcoins have underperformed the benchmark index.

Market Highlights

Aave performs brilliantly

Aave performed outstandingly this week, with a TVL rise of 5.86%, ranking second among the top 20 DeFi projects. The price of AAVE tokens rose by 21.38%, performing excellently among the top 50 cryptocurrencies.

Aave's popularity is primarily driven by two factors:

1. Propose a series of optimization governance and token economic model proposals, including buying back AAVE for $1 million every week, increasing staking rewards, etc.

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

As a leader in DeFi, Aave's initiatives may influence the development direction of the entire industry. In the current market's lack of innovation, Aave's focus on strategies that bring actual returns to users has attracted attention and may drive more DeFi projects to shift towards dividend or buyback models.

Berachain continues to rise

Despite the overall market decline, Berachain's TVL rose by 17.21% this week, reaching $3.449 billion, ranking sixth among public chains. The LSD and DEX projects in its ecosystem have shown significant growth, primarily benefiting from high APY attracting users.

Berachain adopts a "staking is productivity" strategy, empowering on-chain assets through DeFi, forming a positive growth cycle. To maintain ecological vitality, Berachain has kept a high APY, while the founders stated that they are repurchasing tokens from early investors.

Currently, about 30% of BERA on the Berachain chain is in a staked status, and this ratio still has room for growth. As more tokens enter staking, the circulating supply decreases, forming support for the price of BERA.

Important Events Next Week

• March 12: US February CPI year-on-year announcement
• March 13: Web3 Amsterdam 2025 Conference held

Summary

This week, the crypto market has highlighted a complex pattern amidst fluctuations. Although the return of stablecoins and the stable performance of some hot projects are noted, the overall market remains affected by macro uncertainty. Projects like BTC, AAVE, and Berachain are expected to stand out due to their fundamental advantages. Investors need to continuously pay attention to on-chain data, policy trends, and upcoming unlocking events to seize opportunities and mitigate risks.