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The crypto market is experiencing a sharp fall, while high APY strategies help projects like Sonic to rise against the trend.
Crypto Assets Market Weekly: Highlights and Concerns in the Downward Trend
This week, the Crypto Assets market has shown a sharp fall, with the market sentiment index dropping from 33% to 11%. The market capitalization of stablecoins has basically stagnated, indicating that institutional funds are starting to withdraw. The market panic is mainly due to a large-scale asset theft incident at a certain trading platform, as well as concerns over inflation triggered by Trump's proposed aggressive tariff policies, which have lowered expectations for a Federal Reserve rate cut and intensified worries about a recession in the U.S. Overall market sentiment has plunged into extreme panic, with most coins underperforming the benchmark index.
Market Highlight Project Analysis
LTC: This week, it has risen against the trend, mainly benefiting from the market's heightened expectations for its ETF approval. A capital company has listed the spot LTC ETF in the custodial trust and clearing company system, and the betting approval on a certain prediction market has reached 87%. Currently, the market has high expectations for the approval of the LTC spot ETF, and speculation is expected to continue until the official approval.
S: Sonic has recently entered the Defi industry, attracting a large number of users and funds through high APY from on-chain projects. Its main liquidity staking project has an APY of up to 123%, with an average borrowing interest rate of 10.21%, allowing users to gain over 20% returns. The price of S tokens has risen against the trend, further enhancing user returns, and is expected to attract more users to participate, driving the price of S tokens to spiral upwards.
SOSO: The SoSoValue project team can adjust its development direction according to market trends, shifting from AI investment services to high APY wealth management services. Recently, the second season of mining activities was launched, where users can stake SSI to earn up to 42% APY, attracting more users to participate and enhancing the bullish expectations for the SOSO token.
BERA: Berachain quickly adjusts the on-chain LSD project staking yield, with WBERA APY reaching up to 123%, and the borrowing rate for BERA at 23.68%, allowing arbitrage users to achieve a 100% risk-free annualized return. The high APY strategy rapidly curbs the falling trend and drives up the price of BERA tokens.
Market Concerns Project Analysis
ETH: A theft of 491,000 ETH from a trading platform has triggered market FUD sentiment. Although the exchange has replenished the stolen ETH, the buying power has not reflected in the price. Vulnerabilities in safe technology have raised concerns about the security of the Ethereum ecosystem. The Pectra upgrade is about to be launched on the testnet, but it has not injected enough momentum into the ETH price, and a correction may occur after the upgrade is implemented.
SOL: The wave of Meme coins receding affects the Solana ecosystem. The on-chain TVL has decreased from $12.1 billion to $7.3 billion, a fall of 39.66%. The yield on liquidity staking has dropped from 10.29% to 7.26%, and the trading volume has decreased by 93.23%. A total of 11.2 million SOL will soon be unlocked, which may create sustained selling pressure.
ADA: The TVL on the Cardano chain has fallen significantly by 26.88%, dropping to $308 million. The TVL of all on-chain ecological projects has decreased by over 10%, indicating a rapid outflow of funds. DEX trading volume has decreased by more than 68%, and the borrowing rate is only 3.29%, far lower than that of other public chains.
AI: The AI and Gamefi sector where Sleepless AI operates has seen a significant correction. Market interest in the Gamefi Play to earn model has diminished, and AI project valuations are generally considered high. A total of 17.27 million tokens are about to be unlocked, accounting for 1.73% of the circulating supply, and there may be a short-term fall after the unlock.
TKO: As a large exchange token in Southeast Asia, it is affected by a certain exchange's theft incident. 100 million coins are about to be unlocked, accounting for 2.02% of the circulation, and it may fall after the unlock.
RUNE: THORChain's trading volume and transaction fees rose due to hacker money laundering activities, but subsequent developer departure events have raised market concerns. A decrease in trading volume and money laundering FUD is expected to lead to a continued fall.
Hot Track Analysis
Sonic Chain
Sonic chain's TVL continues to grow rapidly, increasing by 10.32% this week to $683 million, making it one of the few public chains to maintain capital inflow in a falling market. The S coin rose by 7.63% this week, indicating market recognition.
Sonic has recently shifted to the DeFi track, adopting high APY strategies to attract users. The main liquidity projects offer up to 123% APY, with lending rates around 10%, allowing users to achieve 100%+ arbitrage APY. High returns attract users to buy or borrow S tokens to participate in arbitrage, increasing demand and driving prices up.
The key to future development lies in maintaining the efficient operation of the economic flywheel, achieving a positive cycle of staking lock-up, liquidity release, DeFi empowerment, and user growth. Close attention should be paid to the changes in on-chain DeFi project APY to assess the driving force of ecological development.
Berachain
Berachain's TVL increased by 4.66% this week to $3.194 billion, ranking sixth among public chains. The price of BERA tokens rose by 7.26%, showing strong performance.
Mainly benefited from the significant increase in APY of on-chain LSD projects, reaching up to 190.12%. The borrowing rate of 23.68% allows arbitrage users to achieve a 100% risk-free annual return, quickly reversing the fall trend.
The development path of Berachain is similar to that of Sonic, facing the same challenges. The high-interest rate model promotes ecosystem development and token appreciation in the short term, but in the long term, it faces the risk of increased selling pressure. In the future, attention should be paid to the emergence of new on-chain projects and the changes in interest rates of LSD projects.
Market Theme Overview
This week, the Sociafi sector performed the best, while the PayFi sector performed the worst. In Sociafi, TON and CHZ accounted for 95.17%, with a relatively small fall. In PayFi, XRP, LTC, and XLM accounted for 94.62%, with XRP and XLM experiencing a significant fall that affected the overall performance.
Important Events Preview for Next Week
Summary
This week, the crypto market experienced a significant fall, and investors are generally becoming more concerned. Some projects are attracting users through high APY strategies, but in the long run, market stability and the emergence of new projects are crucial. Investors are advised to closely monitor market dynamics and operate cautiously.