USDC’s instability sent shockwaves across the industry; DeFi’s transaction volume crossed $58 billion across all protocols last weekend.
DappRadar preliminary report
Last weekend, the markets were shaken by the possibility of a systemic crisis in the banking industry. Silicon Valley Bank (SVB) officially failed, leaving more than $15 billion in potential depth. SVB was the biggest bank for tech startups, including several Web3 or crypto native brands, including Circle, the digital asset firm behind the second largest stablecoin, USDC.
As the insolvency rumours around SVB were confirmed, USDC lost its peg as the fiat-based collateral was compromised. This phenomenon was eerily reminiscent of the 2022 crypto black swan events, such as the collapse of Terra Luna, FTX, and the fall of Three Arrows Capital. As financial regulators responded to cover SVB’s debt, the price of USDC came back almost to parity. Still, USDC’s volatility has caused widespread panic and uncertainty in the market.
Key Takeaways
Last weekend, the markets were shaken by the possibility of a systemic crisis in the banking industry. Silicon Valley Bank (SVB) officially failed, leaving more than $15 billion in potential depth. SVB was the biggest bank for tech startups, including several Web3 or crypto native brands, including Circle, the digital asset firm behind the second largest stablecoin, USDC.
As the insolvency rumours around SVB were confirmed, USDC lost its peg as the fiat-based collateral was compromised. This phenomenon was eerily reminiscent of the 2022 crypto black swan events, such as the collapse of Terra Luna, FTX, and the fall of Three Arrows Capital. As financial regulators responded to cover SVB’s debt, the price of USDC came back almost to parity. Still, USDC’s volatility has caused widespread panic and uncertainty in the market.
Key Takeaways
- USDC’s instability sent shockwaves across the industry; DeFi’s transaction volume crossed $58 billion across all protocols last weekend.
- On 11 March, Uniswap V3 reached ATH in daily Unique Active Wallets (67,500) with an average transaction size of $170,080.
- NFT traders went numb; 11 March was the day with the least active NFT traders (11,440) since November 2021.
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