Gate Ventures: BTC and ETH have significantly retraced, while investment and financing activity has risen against the trend

According to the latest crypto weekly report released by Gate Ventures, the overall crypto market faced pressure and retraced in the past week, with BTC down 8.7% and ETH's decline widening to 19.4%. ETF fund flows significantly weakened, with BTC and ETH ETFs recording net outflows of approximately $1.49 billion and $327 million, respectively, while the total market capitalization of crypto assets declined by 11.3% over the week. The ETH/BTC exchange rate fell below the critical level of 0.03, further deteriorating market sentiment and entering the "extreme fear" zone, with increased volatility revealing gradual leverage and position pressure.

In terms of on-chain and industry activities, despite market pressure, venture capital and innovation dynamics continue to drive progress. Several developments are focused on payment infrastructure, compliant on-chain services, and adaptive DeFi architectures. In terms of investment and financing, a total of 11 financing transactions were completed last week, with a disclosed total financing amount of approximately $188.5 million, an increase of about 52% compared to the previous week, with funds mainly concentrated in DeFi and infrastructure-related areas. These dynamics indicate that, in a context of cautious sentiment, capital allocation remains structurally selective and continues to support developments related to long-term on-chain utility.