Binance Research's March market report highlights an accelerated decline in the cryptocurrency market during February, with market sentiment plunging into the extreme fear zone. The report attributes Bitcoin's recent pullback partly to the sell-off in AI-related tech stocks, as institutional investors often view Bitcoin and software tech stocks as similar 'tech risk assets' and reduce holdings accordingly. Additionally, the report notes a significant drop in Ethereum Layer 2 (L2) activity. The ratio of daily active users on L2 compared to Layer 1 (L1) fell from a peak of 10.43 in June 2025 to 1.12 in February 2026, marking a year-over-year decline of approximately 68%.