Crypto Market Weekly Report: BTC fluctuates and rebounds, MicroStrategy continues to increase holdings

Macroeconomic Environment

Recently, the US stock market has experienced one of the most severe adjustments since the pandemic. Currently, expectations for US reciprocal tariffs have eased, boosting market sentiment, and signals of a bottom in the US stock market are beginning to emerge, but have not yet been fully established. The crypto market has rebounded in fluctuation with the US stock market.

Market Overview

This week BTC fluctuated and rebounded, with the market mainly focused on the BSC chain and SOL chain. MicroStrategy increased its holdings of BTC by $600 million in the past week.

Top five gains: ZETA ( 60% ), LAYER ( 60% ), FARTCOIN ( 50% ), MEW ( 40% ), BEAM ( 40% ) Top five declines: NTGL ( 60% ), PI ( 30% ), PLUME ( 20% ), SATS ( 15% ), XCN ( 10% )

It is worth noting that:

• SOL: Market rumors suggest that a well-known market maker has a large demand for over-the-counter trading recently.
• FORM: As a meme token launch platform on the BSC chain, it benefits from the total liquidity incentive program of 100 million USD launched by the BSC chain.
• HYPE: The on-chain exchange was forced to delist due to an attack on its treasury, losing user trust. This also reflects the issue of small token contracts being easily manipulated.

On-chain Data Analysis

The demand for BTC continues to weaken, and most short-term investors are currently in a state of loss. The supply from long-term holders has begun to increase again. Currently, short-term holders have 40% of the wealth, down from the peak of 50% at the beginning of 2025. However, this peak is still significantly lower than the 70-90% levels seen during previous bull market highs, which may be related to the entry of large institutional investors through ETFs and other means in this round.

The market value of stablecoins has sharply declined, indicating a risk-averse sentiment among funds. However, institutional funds have regained optimism, ending a continuous outflow trend that lasted for five weeks.

The MVRV-Z Score indicator is currently at 2.0, close to the mid-level of the market. This indicator reflects the overall profitability of the market, with values greater than 6 indicating the top range and less than 2 indicating the bottom range.

Futures Market

• Long-short ratio: 1.1, market sentiment normal
• Open interest: The open interest of BTC has slightly decreased, reflecting a lack of clear direction in the crypto market.
• Funding rate: This week's rate is 0.01%, which is at a relatively low level.

Spot Market

BTC experienced a rebound this week. The market volatility has significantly decreased, entering a consolidation phase after the sharp decline. Exchanges are accelerating the launch of some VC-supported token projects.

Public Chain Ecosystem Dynamics

BTC ecosystem

A well-known company continues to increase its holdings of nearly 7,000 BTC and has launched perpetual preferred stock STRF for trading on NASDAQ, demonstrating its strategic determination to maximize its Bitcoin holdings.

The founder of the company disclosed on social media that from March 17 to 23, the company increased its holdings by 6,911 BTC at an average price of about $84,529, with a total investment of approximately $584.1 million. As of March 23, the total amount of BTC held by the company has reached 506,137, with a cumulative purchase cost of about $33.7 billion and an average holding cost of $66,608.

On March 26, the company's STRF perpetual preferred shares officially began trading on Nasdaq, with the financing scale raised from the originally planned $500 million to $722.5 million, and a fixed annual dividend set at 10%. STRF aims to serve as a high-yield bond-like asset, with the core objective of directing as much capital as possible towards BTC investment.

ETH ecosystem

The Ethereum Pectra upgrade has been successfully launched on the new Hoodi testnet, and the introduction of EIP-7702 will enable multi-currency payment of gas fees.

The launch of the Hoodi testnet was conducted after issues were encountered with the previous Holesky and Sepolia testnets, aiming to ensure that developers can fully test features such as validator exits. Currently, the Hoodi testnet is under close monitoring to ensure the stability and reliability of the upgrade, preparing for the subsequent mainnet deployment.

The Pectra upgrade aims to address several challenges faced by the Ethereum network. One of the changes is the addition of smart contract functionality for wallets, enabling wallet software developers to build new convenient features, such as the ability to pay transaction fees with cryptocurrencies other than ETH.

Ethereum developers previously agreed that if everything goes smoothly on Wednesday, Pectra will undergo approximately 30 more days of monitoring before being finally enabled on the Ethereum mainnet.

In addition, Celo officially completed its migration to the Ethereum Layer 2 network on March 26, utilizing the technology stack of a well-known Layer 2 network. This upgrade aims to enhance Celo's security, scalability, and interoperability with the Ethereum ecosystem. After the migration, Celo's block generation time has been significantly reduced from 5 seconds to 1 second, and transaction speeds have improved markedly. At the same time, Celo will continue to maintain its ultra-low transaction fees of less than one cent.

The TVL of the ETH ecosystem reached 46.288 billion, an increase of 1.53% compared to last week.

TON ecosystem

The fully chain-compatible HiBit DEX has landed on the TON ecosystem, and is expected to play an important role in connecting the TON ecosystem with other blockchain networks.

On March 24, Hibit announced the completion of a new round of $5 million financing. This round of financing will be used to further improve the Hibit ecosystem, focusing on advancing layer 2 infrastructure construction, the development of Hibit DEX, optimizing cross-chain interoperability technology, and deepening the layout of the AI Agent economy.

As the first core application of the Hibit Layer 2 ecosystem, Hibit DEX combines the advantages of centralized exchanges and decentralized exchanges, aiming to achieve an efficient trading experience at millions of TPS levels, and supports permissionless token issuance. At the same time, Hibit DEX also deeply integrates AI Agent economy and Meme community, providing users with a richer trading ecosystem.

TON DeFi locked amount 170.3m, up 14.99%.

SOL ecosystem

A well-known platform has officially launched its decentralized exchange, marking the platform's transition from a single token issuance platform to a comprehensive platform integrating both token issuance and trading.

This DEX uses a constant product market maker model, operating similarly to other mainstream DEXs within the ecosystem. This DEX features instant migration, zero migration fees, stronger liquidity, and creator revenue sharing, among other characteristics and functions. A transaction fee of 0.25% is charged, with 0.20% going to liquidity providers and 0.05% allocated to the protocol.

After the launch of this DEX, it quickly gained market recognition, capturing 21% of the Solana ecosystem DEX market share within just a week, with a trading volume reaching $1.5 billion. In just one week, this DEX processed over 14 million transactions, accumulating transaction fee revenue of $3.03 million.

This breakthrough allows meme coins to seamlessly migrate to the DEX for trading, further consolidating the platform's dominant position in the meme coin trading field and creating strong competition for other DEXs within the ecosystem.

The TVL of the SOL ecosystem DeFi is 6.809b, a slight decrease of 0.24% compared to last week.