Silicon Valley bank’s implosion stoked DeFi transaction frenzy as crypto assets rebound: DappRadar

The highly publicized implosion of Silicon Valley Bank (SVB) last week sparked a frenzy of decentralized financial (DeFi) transactions, according to market intelligence platform DappRadar.

DappRadar notes in a new report that DeFi tends to be very sensitive to market concerns and crashes.

Last weekend, USD Coin (USDC) lost its peg to the US dollar following news that Circle, the stablecoin’s issuer, had $3.3 billion of its $40 billion in reserves tied up in the collapsed SVB. . The second-largest stablecoin by market capitalization fell to $0.8788 before recovering its peg on Monday.

This rollercoaster has had a ripple effect on the DeFi sector, says DappRadar.

“On March 11, following the SVB crash and USDC depegging, the DeFi market saw a significant decline in its TVL, down 9.6% from $79.28 billion to 71 .61 billion. The news caused panic among investors, leading to a sell-off and a drop in TVL.

Fortunately, on Monday the 13th, the USDC reserve deposit held at Silicon Valley Bank was fully open to the public, which helped stabilize the market. This announcement led to a 13% rise in DeFi TVL, reaching $81.15 billion. »

TVL stands for “Total Locked Value”, which represents the total capital held in smart contracts on a blockchain. TVL is calculated by multiplying the amount of collateral locked in the network by the current value of the assets.

DappRadar notes that the number of unique active wallets interacting with DeFi contracts increased from 421,026 on March 8 to 477,094 on March 11, an increase of 13%. The number of transactions increased by 23%, from 1,356,483 to 1,668,992.

Decentralized exchange (DEX) Uniswap (UNI) was behind the increase in activity, according to the market intelligence platform.

“Uniswap V3, one of the most popular decentralized exchanges, saw a significant increase in UAW, surpassing 67,000 on Saturday March 11, with a volume of $14.4 billion, the highest figure ever recorded for V3. The 67,000 UAW was the highest recorded on a Uniswap Dapp since summer 2021.

Additionally, Uniswap V3 avg. Saturday’s trade size was $170,080, almost double the average, signaling that Ethereum DeFi whales were very active over the past weekend.

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