DappRadar data, DeFi transactions Silicon Valley BankIt showed that after the bankruptcy of .
Silicon Valley BankThe failure of . However, things went well in the cryptocurrency market.
DappRadar Data Shows DeFi Rise After Bank Crashes
According to market data platform DappRadar, the high-profile collapse of Silicon Valley Bank (SVB) last week severely boosted decentralized finance (DeFi) transactions.
In a new report, DappRadar notes that DeFi tends to be highly sensitive to market concerns and crashes.
Last weekend, USD Coin (USDC) lost peg to the US dollar following news that $3.3 billion of the stablecoin’s issuer Circle’s $40 billion reserve was stuck in the collapsing SVB. The second-largest stablecoin by market cap fell as low as $0.8788 before regaining its peg on Monday.
DappRadarexplains that these ups and downs and the bustling agenda have created a ripple effect on the DeFi industry.
DappRadar wrote in the data report:
“On March 11, after the SVB collapse and USDC depegging, the DeFi market experienced a significant drop in TVL, falling 9.6 percent from $79.28 billion to $71.61 billion. The news created panic among investors, sparking a significant sell-off and a drop in TVL. Fortunately, the USDC reserve deposit held at Silicon Valley Bank on Monday the 13th was fully public, which helped stabilize the market. This announcement allowed DeFi TVL to reach $81.15 billion, a 13 percent increase.”
TVL, a BlockchainIt stands for “keyed aggregate value”, which represents the total capital held in smart contracts of . TVL is calculated by multiplying the amount of collateral locked into the network by the current value of the assets.
