Abstract

• BTC showed a volatile upward trend this week, reaching a peak of $88,757.
• Hyperliquid suffered a manipulation attack, intensifying a growing trust crisis.
• Wyoming plans to launch its stablecoin, WYST, in July.
• Ethereum developers have drafted the EIP-7917 proposal.
• Aave’s lending rates dropped to 4%, reflecting a rise in risk-averse sentiment in the crypto market.
• Berachain’s total value locked (TVL) surpassed $3.4 billion, with Infrared emerging as a key growth driver.
• DeFi protocol Abracadabra was hit by a $13 million exploit.

Market Analysis

Review and Insights

• BTC —— This week, BTC showed a volatile upward trend, with the current price hovering around $87,500. The short-term support level is near $85,000, with stronger support located around $82,500. On the upside, immediate resistance lies between $87,500 and $88,000. If BTC successfully breaks through this zone, it could further test the $89,500 to $90,000 resistance range. Meanwhile, overall market trading volume remained moderate, with occasional local surges that lacked sustained momentum. Both bulls and bears maintained a cautious stance, suggesting that BTC is likely to stay in a consolidation phase in the short term. [1]

• ETH —— This week, ETH followed a similar pattern, maintaining a volatile upward trend with the current price around $2,035. The short-term key support lies at $1,980, where previous pullbacks found effective support. Stronger support is located around $1,920. On the upside, clear resistance is found between $2,050 and $2,080. A successful breakout and stabilization above this range could lead to a further test of the $2,150 level. In terms of market activity, ETH exhibited moderate trading volume this week, with occasional surges but no sustained trend, indicating that ETH will likely continue to fluctuate within this range in the near term. [2]

• Altcoins —— Over the past 7 days, the altcoin market experienced a rebound, with overall gains surpassing last week’s performance. The top three performing sectors were Cross-chain Communication (up approximately 45%), AI Meme (increased by around 14.7%), and Liquid Staking Tokens (gained about 9.5%) [3]
• Option Market —— As of 8:00 AM (UTC+8) on March 27, 2025, the total BTC options open interest stood at $36.517 billion, showing a slight increase from last week’s $35.651 billion. Notably, the notional value of options expiring on March 28 rose to $13.747 billion. [4]
• Macro Data —— On the evening of March 25, the United States reported a decline in the Consumer Confidence Index to 92.9, falling below the expected value of 94.5, indicating growing concerns about the economic outlook. [5]
• Stablecoins —— This week, the total market capitalization of stablecoins decreased by 3.47%, falling to $222.4 billion, reflecting significant capital outflows. [6]
• Gas Fees —— Over the past 7 days, Ethereum’s average Gas Fee rose to 0.52 Gwei, while overall network activity saw a slight decline. [7]

Trending Concepts

This week, BTC fluctuated between $84,000 and $89,000, while the performance of various altcoin sectors was mixed. According to CoinGecko data, the top three performing sectors were Cross-Chain Communication, AI Meme, and Liquid Staking Tokens, with their 7-day market cap increasing by approximately 43.9%, 14.7%, and 9.5%, respectively. [8]

Cross-Chain Communication —— This sector focuses on interoperability technologies and practices between different blockchain networks. It aims to facilitate the seamless transfer and interaction of assets, data, and information across heterogeneous chains using bridge protocols, relay mechanisms, and other solutions. By breaking down blockchain silos, it promotes the integration and collaborative growth of blockchain ecosystems.

The Cross-Chain Communication sector surged 43.9% in the past 7 days, with a market cap reaching $3.033 billion and a 24-hour trading volume of $103 million. Within this sector, the token ZETA led the gains, rising 61.7% over the last 7 days. [9]

AI Meme —— This sector merges artificial intelligence (AI) with internet meme culture by using AI to generate, edit, and spread humorous, satirical, or culturally resonant meme content. It creates a novel and engaging digital cultural experience by blending cutting-edge AI technology with creative internet trends.

The AI Meme sector gained 14.7% over the past 7 days, with a market cap of $235 million and a 24-hour trading volume of $622 million. Among the tokens in this sector, Fartcoin recorded a 51.3% increase in the last 7 days. [10]

Liquid Staking Token —— This sector represents tokenized versions of staked assets that can be traded in DeFi applications while still earning staking rewards. For example, Lido Staked Ether (stETH) is a token representing staked Ethereum.

The Liquid Staking Token sector’s market cap increased by 9.5% this week, reaching approximately $33.9 billion, with a 24-hour trading volume of $221 million. Within this sector, the token LBGT surged 116.4% over the past 7 days. [11]

Top Performers

According to CoinGecko data, the following are the top-performing tokens over the past 7 days: [12]

BBERA (Berachain) —— 7-day gain of approximately 27.0%, with a circulating market cap of $846 million.

Berachain, launched in late 2021, is an EVM-compatible Layer 1 blockchain focused on DeFi, built on the Cosmos SDK and utilizing an innovative Proof of Liquidity (PoL) consensus mechanism. The project’s origins are quite unique, tracing back to the Bong Bears NFT series launched in August 2021, which later spawned multiple related bear-themed NFT collections.

Over the past 7 days, the price surge of Berachain (BERA) was primarily driven by the rapid growth of its ecosystem, improved market sentiment, and the official launch of its Proof of Liquidity (PoL) mechanism. As an EVM-compatible blockchain, Berachain’s TVL and user activity have shown significant increases, while the PoL mechanism incentivizes liquidity provision, boosting investor confidence. These favorable developments fueled a rapid short-term price increase for BERA. [13]

CRO (Cronos) —— 7-day gain of approximately 25.3%, with a circulating market cap of $2.76 billion.

Cronos (CRO) is the native cryptocurrency of the Crypto.com blockchain and the Cronos EVM chain. Known for leveraging Ethereum-compatible blockchain technology built on the Cosmos SDK, Cronos EVM enables developers to seamlessly migrate applications from other blockchains while allowing users to engage in decentralized transactions without requiring permission or central authority oversight.

The recent surge in Cronos (CRO) was mainly driven by the announcement of strategic partnerships and upcoming major network upgrades. Notably, Trump Media & Technology Group (TMTG) announced a collaboration to develop Truth.Fi, an ETF fund that includes Bitcoin, Cronos, and other mainstream crypto assets. Additionally, Cronos’ upcoming zkEVM mainnet upgrade, scheduled for March 2025, has heightened market anticipation. This upgrade is expected to enhance network efficiency and user experience through smart account single sign-on and zero-knowledge gateway technology. These developments significantly boosted market sentiment, resulting in a surge in trading volume and attracting a wave of investors and speculators, driving a short-term spike in CRO’s price. [14]

S (Sonic (prev. FTM)) —— 7-day gain of approximately 14.6%, with a circulating market cap of $1.959 billion.

Sonic is an EVM-compatible Layer 1 blockchain designed to provide robust infrastructure and incentives for DeFi applications. The network boasts a high throughput of 10,000 TPS and sub-second transaction confirmation. Additionally, Sonic Gateway — a secure bridge connecting Ethereum — further enhances liquidity and asset security.

Recently, the launch of Sonic Pay and the deployment of multiple DeFi platforms such as AAVE have increased its TVL to $800 million, drawing more investor attention to its functionality and value. This increased recognition has driven a rise in token prices. [15]

Weekly Spotlights

Hot Topic Review

Ethereum Developers Draft EIP-7917 Proposal to Address Uncertainty in Proposer Elections

On March 27, 2025, Ethereum core developers linoscope and JustinDrake drafted the EIP-7917 proposal. This proposal aims to address the uncertainty in the current proposer election process caused by fluctuations in validator effective balances by introducing a deterministic proposer lookahead mechanism. This approach is expected to enhance system security, simplify the implementation of on-chain protocols, and maintain backward compatibility and scalability.

If adopted, EIP-7917 is likely to significantly improve the predictability and security of the proposer election process. By precomputing proposer lookahead, the proposal may mitigate risks associated with effective balance fluctuations, ensuring more stable and reliable network operations. This improvement could boost the confidence of both validator operators and users. The broader blockchain industry may also benefit from the enhanced security and efficiency that EIP-7917 would bring to Ethereum.

As one of the most important public blockchains in the crypto space, improvements to Ethereum often set the standard for other projects. This proposal highlights the critical role of community governance in the ongoing development of public blockchains. [16]

Wyoming to Launch Stablecoin WYST in July

Wyoming plans to launch its WYST stablecoin in July 2025, making it the first U.S. state to issue a government-backed stablecoin fully backed by fiat assets. The value of WYST will be supported by U.S. Treasury securities, cash, and repurchase agreements, ensuring a minimum capitalization ratio of 102%. The state aims to use the interest generated from these reserve assets to fund education and infrastructure projects. Currently, Wyoming is evaluating blockchain platforms such as Solana, Ethereum, and Polygon for deploying and transacting the token.

The launch of WYST marks a significant step for U.S. local governments entering the cryptocurrency space, potentially paving the way for other states — and even the federal government — to explore their own stablecoins. Since WYST will be backed by fiat assets and subject to clear capitalization requirements, it is expected to offer greater stability and regulatory compliance compared to existing stablecoins such as USDT and USDC. This initiative could attract traditional institutional investors to the crypto market and promote the use of blockchain technology in public finance.

However, WYST’s success will ultimately depend on factors such as market acceptance, exchange support, and its competitiveness with existing stablecoins. Additionally, if WYST chooses to operate on Solana, Ethereum, or Polygon, it could further enhance the ecosystems of these blockchains, driving positive market effects. [17]

Hyperliquid Faces Manipulation Attack, Trust Crisis Intensifies

On March 26, a trader manipulated the JELLYJELLY market on Hyperliquid by opening a $6,000,000 short position and driving up prices, causing forced liquidations that impacted the HLP liquidity pool. Despite Hyperliquid’s delisting of the contract and promise to compensate users, trust deteriorated rapidly, leading to a $140 million USDC outflow from the platform.

The incident exposed flaws in Hyperliquid’s risk management practices for handling low-liquidity assets. While the decision to delist the contract and offer compensation may have prevented immediate financial collapse, it raised doubts about the platform’s commitment to decentralized governance, especially given that its validator nodes are primarily controlled by the Hyper Foundation. User trust was shaken, and the outflow of funds highlighted challenges to long-term stability. Centralized exchanges may seize the opportunity to attract users, especially in the wake of Hyperliquid’s damaged reputation.

Other decentralized exchanges (DEXs) may also learn from this incident, improving their risk management and governance frameworks. This event underscores the challenges DEXs face in addressing market manipulation and maintaining platform stability, potentially driving the industry to enhance risk assessment and governance mechanisms. Additionally, regulators may increase scrutiny of DEXs, prompting the industry to adopt more transparent governance frameworks. [18]

Security Incident

DeFi Protocol Abracadabra Suffers $13 Million Exploit

On March 25, 2025, DeFi protocol Abracadabra suffered a major exploit, resulting in a loss of approximately $13 million (around 6,260 ETH). The attack attracted widespread attention from the crypto community and once again highlighted the challenges DeFi protocols face in ensuring smart contract security. The attacker exploited a rounding error in the collateral and debt calculation, allowing them to over-mint a large amount of MIM stablecoins, which were quickly swapped for ETH or USDT to evade tracking and transfer the funds.

Abracadabra’s official team has acknowledged the incident and is currently working with security firms such as PeckShield and CertiK to trace the stolen funds and attempt to freeze some assets. The team is also addressing the contract vulnerability and is likely to enhance auditing procedures, optimize precision handling mechanisms, and consider implementing multi-signature verification to prevent similar attacks in the future. While DeFi protocols drive financial innovation, smart contract security remains an unavoidable risk that requires constant vigilance. [19]

Project Highlights

Nillion Alpha Mainnet Goes Live

On March 24, privacy-focused computation network Nillion announced the official launch of its Alpha mainnet, marking a critical step in advancing distributed privacy computing technology. Nillion focuses on data privacy protection and secure computation, enabling multi-party secure computation and cross-entity data collaboration without exposing sensitive information. This mainnet launch primarily targets developers, providing the infrastructure needed to build decentralized applications (dApps) based on the Nillion protocol and advancing data privacy protection and cross-chain collaboration.

As an essential part of Web3 infrastructure, privacy computation is gaining increased attention. The launch of the Nillion Alpha mainnet not only injects fresh momentum into the privacy computing sector but also offers a high-performance, compliant solution for high-growth scenarios such as data security and AI privacy training. This development is expected to attract more developers and capital interest in the future. [20]

Data Highlights

Aave Lending Rates Drop to 4%, Reflecting Rising Risk Aversion in the Crypto Market

Data from Aave, a leading decentralized lending platform, suggests weakening market confidence. Currently, the annual lending rates for major stablecoins like USDT and USDC have dropped to around 4%, significantly lower than the 10%+ levels seen during bull markets, indicating a decline in investor risk appetite and rising risk aversion in the crypto space. Meanwhile, Bitcoin has been fluctuating between $76,000 and $88,000 since March, lacking a clear catalyst, which has limited its upward momentum.

As an important indicator of on-chain capital activity, Aave’s declining rates reflect a cooling attitude toward leveraged trading. Weak borrowing demand and a wait-and-see approach by capital have led to reduced market activity and constrained price volatility.

Overall, the continued decline in Aave’s lending rates has become a leading indicator of market sentiment. Without an influx of new capital or major positive catalysts, Bitcoin is likely to remain in a consolidation phase in the short term, as the market enters a period of rebuilding confidence and liquidity. [21]

Berachain TVL Surpasses $3.4 Billion, Infrared Becomes Key Growth Driver

Emerging high-performance Layer 1 blockchain Berachain recently surpassed $3.5 billion in total value locked (TVL), setting a new all-time high and showcasing strong momentum in its rapidly expanding ecosystem. A major driver behind this TVL surge was the official launch of Berachain’s “Proof-of-Liquidity” (PoL) system on March 24, marking the initiation of the first phase of its on-chain governance. The PoL mechanism not only strengthens staking incentives but also promotes capital recycling within the ecosystem, further accelerating liquidity inflows. [22]

Infrared, a liquid staking protocol, played a pivotal role in this growth, with its TVL surpassing $2.3 billion — accounting for over 60% of Berachain’s total TVL — and rising by 20% in just 7 days. Infrared’s appeal lies in its high yield potential, its tight integration with Berachain’s native assets, and growing market interest in the LSD (liquid staking derivatives) sector, making it a prime entry point for capital deployment.

Currently, Berachain’s TVL remains highly concentrated, with core protocols driving most of the growth. To diversify and ensure sustainable growth, Berachain will need to introduce more foundational infrastructure such as DEXs and lending platforms. With the mainnet launch and airdrop anticipation heating up, Berachain continues to exhibit strong capital attraction, but its long-term retention and ecosystem stickiness remain areas for ongoing observation.

Bitcoin On-Chain Data Shows Short-Term Holders Under Pressure, Long-Term Holders Dominating Profits

According to Glassnode data, spending behavior among long-term holders (LTHs) and short-term holders (STHs) has shown a clear divergence in the current market. Almost all realized losses are coming from short-term holders, who bought in at higher prices during recent market cycles. With BTC hovering around $86,000 amid frequent price fluctuations, these holders are more likely to panic-sell and exit during downturns. In contrast, most profitable sell-offs are being led by long-term holders, who acquired their BTC at significantly lower prices and remain in a strong profit position despite market volatility, giving them greater selling flexibility.

Overall, BTC is currently in a transitional phase where short-term holders face selling pressure, while long-term holders are realizing profits. If this trend persists, the market may enter a consolidation phase driven by capital redistribution. Future performance will depend on whether fresh capital continues to flow in and whether macroeconomic conditions improve. [23]

Market Opportunities

Project Airdrops

OneFootball

OneFootball is a football media company headquartered in Berlin, Germany, founded in 2008. The company launched OneFootball Labs, a blockchain-powered platform that allows clubs, leagues, federations, and players to issue digital tokens and enhance fans’ engagement. [24]

The OneFootball team has confirmed plans to launch its native token, OFC, which means that participants currently engaged in Points Farming may be eligible for future token airdrop rewards. Season 2 of the activity has officially started, where users can accumulate points by completing tasks, potentially qualifying for the future OFC token airdrop.

How to Participate:

1. Visit the event page and create an account.
2. Connect your wallet and complete tasks to earn points

Note:
The airdrop program and participation methods are subject to change. Users are advised to follow OneFootball’s official channels for the latest updates. Additionally, users should exercise caution, be aware of potential risks, and conduct thorough research before participating. Gate.io does not guarantee the distribution of future airdrop rewards.

Weekly Fundraising Report

Multiple successful fundraising rounds occurred this week across infrastructure, DeFi, and other sectors. According to RootData, 10 projects raised over $70 million between March 21 - 27.

Here are the top three fundraising events:[25]

Tabit raised $40 million on March 24 in Bitcoin, which will serve as reserves for traditional insurance and reinsurance operations. As a Barbados-regulated insurer, Tabit claims to be the world’s first compliant risk underwriter using Bitcoin reserves for USD-denominated traditional policies.

Currently, Tabit offers traditional insurance products including D&O coverage, introducing a crypto-backed innovation to traditional insurance with Bitcoin reserves and USD settlements. This approach aims to attract crypto companies, Web3 projects, and DAOs, especially in high-risk areas underserved by traditional banking.

Chronicle Protocol secured $12 million in seed funding on March 25, led by Strobe Ventures and 6th Man Ventures. As Ethereum’s first oracle created by former MakerDAO team members, Chronicle enables blockchains to send and receive off-chain data similar to how phones connect to external data sources.

Chronicle also provides infrastructure for tokenized assets, serving both DeFi and RWA sectors with its verified asset oracle. The funding will support product development and research.

Fragmetric raised $5 million in strategic funding on March 24, led by RockawayX and Robot Ventures, to expand fragAsset and accelerate restaking platform development. The project focuses on modular blockchain infrastructure, supporting cross-chain integration for Rollups, on-chain applications, and decentralized AI.

The continued development of fragAsset strengthens Fragmetric’s position in the “modular + restaking” space, potentially expanding into multi-chain DeFi, security validation, and decentralized computing. If successful, Fragmetric could emerge as a strong competitor to EigenLayer in the restaking sector.

What to Watch Next Week

Token Unlock

According to Tokenomist data, several major token unlock events are scheduled for next week (March 28 - April 3, 2025), with a total value exceeding $224 million.[26]

Here are the top 3 unlocks:

SUI will unlock approximately 64.19 million tokens on April 1, 2025, at 12:00 UTC, representing 2.03% of its circulating supply and valued at around $170 million. With SUI’s recent daily trading volume around $850 million, this unlock may have minimal impact.

OP will unlock about 31.34 million tokens on March 31, 2025, at 12:00 UTC, accounting for 1.92% of its circulating supply and valued at approximately $28.62 million. Given OP’s recent daily trading volume of $100 million, this unlock’s impact should be limited.

ZETA will unlock roughly 44.26 million tokens on April 1, 2025, at 12:00 UTC, representing 6.05% of its circulating supply and valued at about $15.38 million. With ZETA’s recent daily trading volume around $200 million, this unlock is expected to have minimal impact.

Crypto Calendar

A series of significant events next week (March 28 – April 3, 2025) could have a profound impact on the cryptocurrency market, global economy, and energy sector. On March 28, Taiko will launch the Pacaya upgrade, introducing a major advancement with the pre-confirmation mechanism [27], while the U.S. will release the February Core PCE Price Index (YoY)[29]. March 31 marks the official start of Cardano’s CIP-1694 constitutional voting[28]. On April 1, the U.S. will announce the March ISM Manufacturing PMI Index [30], followed by the March ADP Employment Change report (in thousands) on April 2 [31]. Finally, on April 3, the U.S. will publish the Initial Jobless Claims data for the week ending March 29 (in Thousands)[32].

References:

1. Gate.io,https://www.gate.io/trade/BTC_USDT
2. Gate.io,https://www.gate.io/trade/ETH_USDT
3. Coingecko,https://www.coingecko.com/en/categories
4. Coinglass,https://www.coinglass.com/pro/options/OIExpiry
5. Cryptocraft,https://www.cryptocraft.com/calendar?day=mar25.2025
6. Defillama,https://defillama.com/stablecoins
7. Ethscan,https://etherscan.io/gastracker#chart_gasprice
8. Coingecko,https://www.coingecko.com/en/categories
9. Coingecko,https://www.coingecko.com/categories/cross-chain-communication
10. Coingecko,https://www.coingecko.com/categories/ai-meme-coins
11. Coingecko,https://www.coingecko.com/categories/liquid-staking-tokens
12. Coingecko,https://www.coingecko.com
13. Gate.io,https://www.gate.io/price/berachain-bera
14. Gate.io,https://www.gate.io/price/cronos-cro
15. Gate.io,https://www.gate.io/price/sonic-s
16. Ethereum,https://eips.ethereum.org/EIPS/eip-7917
17. STC,https://stabletoken.notion.site/
18. Foresight,https://foresightnews.pro/article/detail/81076
19. X,https://x.com/MIM_Spell/status/1904535586532180434
20. X,https://x.com/nillionnetwork/status/1904157582203207738
21. Aavescan,https://aavescan.com
22. DefiLlama,https://defillama.com/chain/Berachain?groupBy=cumulative&volume=true&tvl=false
23. Glassnode,https://studio.glassnode.com/charts/indicators.RealizedProfitLossLthSthRelative?a=BTC&mScl=lin&pScl=lin&resolution=24h&s=1231718400&u=1742860800&zoom=
24. OneFootball,https://club.onefootball.com/join
25. Rootdata,https://www.rootdata.com/fundraising
26. Tokenomist,https://tokenomist.ai/unlocks
27. X,https://x.com/alethiataiko/status/1904079368155980233
28. X,https://x.com/Cardano_CF
29. Jin10,https://rili.jin10.com/
30. Jin10,https://rili.jin10.com/
31. Jin10,https://rili.jin10.com/
32. Jin10,https://rili.jin10.com/

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Disclaimer
Investing in the cryptocurrency market involves high risk, and it is recommended that users conduct independent research and fully understand the nature of the assets and products they are purchasing before making any investment decisions. Gate.io is not responsible for any losses or damages caused by such investment decisions.