Investors have been trying desperately to scamper for safety since the unfortunate series of bank crashes that have recently rocked the crypto market.
Statistics from the Block have revealed that swap volume on crypto wallet provider, Metamask, went through the roof last weekend. This development was a quick reaction to top crypto-friendly banks (Silvergates and Signature) crashing, sending a seismic wave through the industry.
The uncertainty began to gain momentum after Silvergates folded and was intensified when SVB and Signature followed. According to Metamask Group Manager Dan Finlay in Frank Chaparro’s podcast interview, these events have cast doubts in the market. The fear continues to gain ground because investors don’t know what to expect next.
“It’s a lot of just speculative panic. People aren’t sure what they can trust. And everybody seems to want something stable,” he said. People were “making some pretty big moves in response to this situation.
On Friday, USDC issuer Circle announced that $3.3 billion was stuck in the Silicon Valley bank, which has been frozen by regulators. The stablecoin issuer has been making bold strides and bucking the trend in these harsh market conditions. The firm recently announced plans to reinforce its works force despite the widespread crypto industry layoff.
“People were betting, they were freaking out that some of their stablecoins were going to drop. DAI even dropped because most of its backing is on USDC now,” Finlay said.
Source: The Block
The Block statistics show that Metamask DEX swap aggregator volume recorded a quick surge peaking at an all-time high of about $230 million. This value represents a 35% increase from its previous highs of $170 million in 2021. The web3 wallet provider made about $1.5 million in swap fees due to this volume spike.
Do you think this change will continue to intensify amidst the market turmoil? Let us know your thoughts in the comment section below.
