Abstract

• Bitcoin price fell 4.97% to 87,612.3 USD, while Ethereum price dropped 5.91% to 2,156.88 USD.
• Trump signed an executive order officially to establish the U.S. Bitcoin strategic reserve.
• Safe{Wallet} investigated the Bybit security incident and confirmed its connection to North Korean hacker group, TraderTraitor.
• Japan’s ruling party plans to lower the crypto trading tax rate to 20%.
• Aave’s high-risk loans decreased by nearly $1 billion, indicating a market deleveraging trend.
• USDC Treasury minted 66.499 million new USDC on the Ethereum blockchain, with circulating supply continuing to grow.

Market Analysis

• BTC - BTC price fell 4.97% in the past 24 hours, currently at 87,612.3 USD. BTC price fluctuates within a consolidation range, showing short-term weakness. It faced selling pressure after approaching the upper boundary of the range twice. Frequent short-term moving average crossovers indicate that the market has yet to choose a clear direction. Overall, trading volume has not fluctuated significantly recently, though it has increased at certain key levels, suggesting capital involvement, but not enough to push the price out of the consolidation range. [1]

• ETH - ETH price fell 5.91% in the past 24 hours, currently at 2,156.88 USD. ETH is in a downtrend, continuously suppressed by the descending trendline and finding support near 2,000 USD. Trading volume increased when the price approached the support area, indicating some buying support at this level. However, overall volume has not shown a sustained surge. Currently, moving averages are in a bearish arrangement, and the price remains below them, suggesting that bearish forces are stronger, posing a short-term downside risk. [2]

ETF - According to SoSoValue data, on March 6, the total net outflow of U.S. Bitcoin spot ETFs was $13,400[3], while the total net outflow of U.S. Ethereum spot ETFs was $25.88 million. Data as of March 7, 13:00 PM (UTC+8). [4]

Altcoins - Recently, altcoins have shown overall weakness, with a broad market pullback. Most sectors declined in the past 24 hours, with no clear signs of capital inflow, indicating that investor sentiment remains cautious. Altcoins still face short-term pressure. [5]

U.S. Stock Indices - On March 6, the S&P 500 index fell 1.78%, the Dow Jones index dropped 0.99%, and the Nasdaq index declined 2.61%. [6]

Spot Gold - Spot gold is priced at $2,908.91 per ounce, with a daily decline of 0.21%. Data as of March 7, 13:00 PM (UTC+8). [7]

Fear & Greed Index - The Fear & Greed Index stands at 34, indicating a state of fear in the market. [8]

Top Performers

According to Gate.io market data[9], based on trading volume and price performance over the past 24 hours, the top-performing altcoins are as follows:

ROAM (Roam) - Daily increase of approximately 678.74%, with a circulating market cap of $32.73 million.

Roam aims to build a global wireless network using a decentralized physical infrastructure network (DePIN), offering users secure, seamless, and free wireless connectivity. By integrating Web3 technology, the project seeks to revolutionize the telecommunications industry. Recognized by the Solana Foundation, it has been dubbed the “Starlink” of the Web3 space.[12]

Recently, a CEX launched an airdrop campaign for ROAM tokens, and multiple major exchanges simultaneously listed the token, significantly increasing its exposure and trading liquidity. Additionally, Roam has strong fundamentals as the world’s largest decentralized WiFi operator, boasting an extensive network infrastructure. Combined with the rising interest in the DePIN sector, these factors have contributed to the token’s price surge.

REZ (Renzo) - Daily increase of approximately 37.60%, with a circulating market cap of $63.30 million.

Renzo is a restaking protocol designed to streamline and expand Ethereum and Solana restaking. It abstracts and manages liquidity restaking token (LRT) AVS strategies, enabling users to seamlessly participate in ecosystems such as EigenLayer, Symbiotic, and Jito Network.[11]

Recently, REZ was listed on an exchange, boosting its visibility, liquidity, and investor engagement. Moreover, as a leading liquid restaking protocol, Renzo benefits from strong fundamental support. These factors have collectively contributed to the increase in REZ token prices.

AVL (Avalon) - Daily increase of approximately 30.12%, with a circulating market cap of $80.97 million.

Avalon Labs is committed to developing a premier on-chain financial hub for Bitcoin, providing Bitcoin-backed lending, stablecoins, yield accounts, and credit card services. Its mission is to create a scalable, transparent, and accessible financial network.[10]

Recently, a CEX listed the AVL token, enhancing its visibility and trading liquidity. Additionally, Avalon unveiled its 2025 development roadmap yesterday, outlining the team’s long-term vision alongside a brand identity update. The roadmap underscores Avalon’s ambitious goal of establishing Bitcoin as the backbone of global capital markets. These combined factors have likely strengthened investor confidence and driven interest in AVL, fueling its price growth.

Data Highlights

Beets TVL Reaches $179 Million

Beets’ total value locked (TVL) has reached $179 million, marking a 21.3% increase in the past 24 hours. Beets’ TVL has demonstrated a strong upward trend, growing from approximately $50 million at the end of November 2024 to $179 million today—an increase of over 200% in less than four months. The majority of Beets’ TVL is concentrated on the Sonic chain ($167 million), while OP Mainnet ($9.41 million) and Fantom ($3.08 million) hold smaller shares.[13]

Beets is a decentralized finance (DeFi) platform built on the Sonic chain, offering seamless staking solutions and high-yield liquidity pools for liquid staking tokens (LSTs). The broader prosperity of the Sonic ecosystem has been the driving force behind Beets’ TVL growth. As a next-generation high-speed DeFi ecosystem, Sonic has consistently increased its TVL and activity since its launch. Beets, as a key component of the Sonic ecosystem, has benefited from this overall growth, attracting significant attention and capital inflows.

Aave High-Risk Loans Decrease by Nearly $1 Billion, Market Deleveraging Trend Emerges

According to IntoTheBlock data, high-risk loans on Aave’s mainnet have decreased by nearly $1 billion since February. Compared to the large-scale liquidation events that occurred that month, the overall leverage risk in the market has now significantly declined. While part of this reduction can be attributed to forced liquidations, the primary driver appears to be bearish market sentiment and cautious strategies adopted by large holders. Many large-position investors are actively deleveraging to hedge against potential further price pressures.

This trend indicates growing market caution, with investors reducing leverage exposure to avoid another wave of mass liquidations. In the short term, this could help stabilize extreme market fluctuations and lower systemic risk. However, it may also reduce overall market liquidity, impacting capital efficiency within the DeFi ecosystem. In the long run, if market confidence fails to recover, the continued decline in leverage could weaken the broader crypto market’s ability to rebound.[14]

USDC Treasury Mints 66.499 Million New USDC on Ethereum, Circulating Supply Continues to Grow

According to Whale Alert, USDC Treasury minted 66.499 million new USDC on the Ethereum blockchain on March 6, with a total value of approximately $66.493 million. Large-scale stablecoin minting typically signals increased market liquidity and may be linked to institutional capital inflows, exchange fund replenishments, or rising market demand. If these newly minted funds flow into exchanges or on-chain protocols, they could influence short-term market liquidity dynamics, making it crucial for investors to monitor capital movements and market reactions.

As of the latest data, USDC’s highest circulation is on Ethereum, reaching $34.7 billion and accounting for 60.66% of its total supply, underscoring its dominance in DeFi, on-chain transactions, and institutional settlements. Solana ranks second, reflecting its significance in high-performance payments and trading.

As a leading regulatory-compliant stablecoin, USDC is widely used across exchanges, DeFi protocols, and cross-border payments. Its strong presence on Ethereum highlights DeFi’s robust demand for stablecoins, while Solana’s low-cost, high-speed blockchain continues to attract a portion of USDC supply migration. Moving forward, USDC’s distribution may shift based on factors such as transaction fees, on-chain throughput, and ecosystem development, indicating a continuously evolving market landscape.[15]

Spotlight Analysis

Trump Establishes U.S. Strategic Bitcoin Reserve

Donald Trump has executed an executive order to establish a Bitcoin strategic reserve in the U.S., containing approximately 200,000 BTC obtained through criminal or civil forfeiture. These assets will be maintained as long-term reserves, with a firm commitment against selling them. Additionally, the U.S. has set up a broader digital asset reserve to hold cryptocurrencies other than BTC, such as XRP, ADA, ETH, and SOL, which will be acquired only through forfeiture. This move officially recognizes Bitcoin as a strategic national asset, likely influencing global financial markets significantly. While short-term uncertainties about U.S. Bitcoin policies persist, long-term implications include a potential tightening of market supply due to governmental holdings, which could enhance Bitcoin’s scarcity and value. Moreover, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick are authorized to procure additional BTC in a manner that does not impose financial burdens on taxpayers. This strategy indicates that the U.S. might expand its Bitcoin reserves further, possibly prompting other nations to reassess Bitcoin’s role in their financial strategies. [16]

Overall, this policy could trigger both institutional and national-level fear of missing out (FOMO), propelling the crypto market into a new growth phase. Furthermore, the U.S. commitment to not selling the BTC bolsters Bitcoin’s deflationary nature, potentially supporting its price over the long term. This shift might also catalyze changes in global regulatory frameworks, spurring competition for digital asset reserves and accelerating Bitcoin’s status as a global reserve currency.

Safe{Wallet} Investigates Bybit Security Incident, Confirms Link to North Korean Hacker Group TraderTraitor

Multi-signature wallet provider Safe{Wallet} has announced its collaboration with Google Cloud’s cybersecurity division, Mandiant, to investigate a security breach that occurred on February 21. The forensic investigation revealed that this attack was an elaborate, state-sponsored operation. The FBI has attributed the incident to the TraderTraitor group, which Mandiant identifies as UNC4899, a notorious entity associated with several cryptocurrency thefts.

The breach involved compromising the laptop of a Safe{Wallet} developer (Developer1) and exploiting an AWS session token to circumvent multi-factor authentication (MFA) controls. This developer possessed high-level access permissions. Utilizing the compromised system, the attackers sought to penetrate the servers of Safe{Wallet}. The investigation continues to delve into the attackers’ techniques and movements.

In response, Safe{Wallet} has upgraded its security measures significantly, fortifying its infrastructure beyond the levels prior to the incident. Moreover, Safe{Wallet}’s smart contracts were not impacted, thus safeguarding user funds. Additionally, BlockSec has implemented a dynamic security protection system for Safe{Wallet}, which includes real-time transaction monitoring, risk analysis, and automated security measures to enhance wallet security and reduce the likelihood of future attacks.[17][18]

Japan’s Ruling Party Proposes Lowering Crypto Trading Tax Rate to 20%

Japan’s ruling party is advocating for significant reforms in cryptocurrency taxation. House of Representatives member Akihisa Shiozaki has disclosed that the proposed changes would decrease the tax rate on crypto transactions from a high of 55% to 20%. This proposal is currently in the feedback stage and is slated for submission to the Financial Services Agency (FSA) by March 31. It suggests reclassifying cryptocurrency under the Financial Instruments and Exchange Act rather than the Payment Services Act, thereby treating it as a “financial product” with a uniform 20% tax rate, akin to the taxation of securities investments. This change could facilitate the introduction of a spot crypto ETF in Japan, potentially making the market more attractive to institutional investors.

In the short term, the proposal requires thorough policy discussions and must gain approval from the FSA. The market may have already factored in some anticipated benefits. Over the long term, successful implementation of these tax reforms could position Japan as a prominent player in the global crypto market. This shift would likely boost demand for BTC and ETH, encourage institutional investments, and possibly support the launch of a spot crypto ETF, leading to sustained positive effects on the market.[19]

Funding News

According to RootData, five projects announced funding rounds in the past 24 hours, with total investments exceeding $24 million. The largest single funding round reached $15 million, covering sectors such as infrastructure and AI. Below are the top three projects by funding amount:[20]

Validation Cloud - Raised $15 million in a Series A round, with participation from True Global Ventures, Blockchain Founders Fund, and others. This funding will be used to expand its global infrastructure network, optimize low-latency blockchain access services, and drive institutional-grade Web3 solutions.

Validation Cloud is a Web3 data and AI company focused on providing data and AI solutions for the Web3 ecosystem. Its product suite includes staking services, node API services, and data/AI solutions designed to accelerate on-chain data searches using AI technology—reducing search times from hours to mere seconds.

In the short term, this funding strengthens competition in the blockchain API sector. In the long run, it could accelerate institutional adoption of Web3, enhance the development of Layer 1 & Layer 2 ecosystems, and contribute to structural growth opportunities across the crypto market.

Seismic - Seismic has completed a $7 million seed funding round, with participation from a16z, 1kx, and others. The funds will be used for technology development, ecosystem construction, regulatory compliance adaptation, and market promotion to accelerate the application of privacy computing in the blockchain industry. Seismic aims to build a blockchain with protocol-level encryption, with its core objective being to address the transparency bottleneck of existing blockchains. Unlike previous approaches that focused on wallet-level encryption, Seismic implements encryption at the blockchain’s foundational layer, enabling application-level encryption. This provides developers with the ability to build decentralized applications with privacy protection features. The newly raised funds will primarily be used to develop a private smart contract platform and promote its application in finance, social networking, and other fields.

Seismic’s funding marks a significant development in the privacy blockchain sector. In the short term, it may attract attention from DeFi, enterprise blockchains, and institutional funds, driving the adoption of private transactions. In the long term, it has the potential to become a competitor to projects like Aleo and Aztec, offering stronger privacy protection solutions for the Web3 ecosystem while promoting blockchain adoption within regulatory frameworks.

Fortytwo - Fortytwo has completed a $2.3 million seed funding round, with participation from Big Brain Holdings, CMT Digital, and others. Fortytwo focuses on the decentralized computing power market, optimizing the allocation of computing resources to enhance the scalability and computational efficiency of the Web3 ecosystem.

By establishing a decentralized computing power market, Fortytwo bridges the gap between Web3’s computing demands and the supply of computational resources. This funding round will support its technology development, node expansion, and ecosystem growth while further advancing the DePIN sector.

Airdrop Opportunities

Elixir

Elixir is a modular network designed for high-throughput liquidity scenarios, offering decentralized market-making solutions that significantly reduce the cost of obtaining liquidity on both centralized exchanges (CEXs) and decentralized exchanges (DEXs). Its goal is to create a more democratic, transparent, and efficient crypto market-making ecosystem, ultimately improving overall market liquidity.[21]

According to the officially released ELX token allocation plan, 41% of the total token supply is allocated to the community. This includes an 8% airdrop in the first season, aimed at rewarding early supporters and expanding the community base. Additionally, 21% of future token distribution is designated for airdrops and LP incentives, signaling Elixir’s commitment to fostering long-term network growth and increasing community engagement through sustained incentive mechanisms.

How to Participate:

1. Visit the official Elixir website and connect your wallet and social accounts.[22]
2. Stake assets to earn points.
3. Promote the project and invite friends to participate to gain additional points.

Notes:
The airdrop plan and participation requirements may be updated at any time. Users are advised to follow Elixir’s official channels for the latest information. Additionally, participants should exercise caution, assess risks, and conduct thorough research before engaging. Gate.io does not guarantee the future distribution of airdrop rewards.


References:

1. Gate.io,https://www.gate.io/trade/BTC_USDT
2. Gate.io,https://www.gate.io/trade/ETH_USDT
3. SoSoValue,https://sosovalue.xyz/assets/etf/us-btc-spot
4. SoSoValue,https://sosovalue.xyz/assets/etf/us-eth-spot
5. CoinGecko,https://www.coingecko.com/en/categories
6. Investing,https://investing.com/indices/usa-indices
7. Investing,https://investing.com/currencies/xau-usd
8. Gate.io,https://www.gate.io/bigdata
9. Gate.io,https://www.gate.io/price
10. X,https://x.com/avalonfinance_/status/1897482403020698102
11. X,https://x.com/RenzoProtocol/status/1897706084363571703
12. X,https://x.com/weRoamxyz/status/1897817450110239020
13. X,https://defillama.com/protocol/beets
14. X,https://x.com/intotheblock/status/1896846613714543032
15. X,https://x.com/whale_alert/status/1897554698049134889
16. X,https://x.com/davidsacks47/status/1897802280738734236
17. X,https://x.com/safe/status/1897663514975649938
18. BlockSec,https://www.blocksec.com/safe-wallet-monitor
19. X,https://x.com/WatanabeSota/status/1897614367857971249
20. Rootdata,https://www.rootdata.com/Fundraising
21. X,https://x.com/elixir/status/1897403017080803427
22. Elixir ,https://www.elixir.xyz/

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Disclaimer
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