Chainalysis: The collapse of US banks led to an influx of funds to decentralized exchanges

Chainalysis reported that the collapse of several US banks led to an outflow of funds from centralized exchanges to decentralized exchanges, as well as an increase in the popularity of USDC.

Chain analysis analysts note that the outflow of user funds is often observed during the period of problems in traditional financial markets. Users are concerned about the loss of savings and the possibility of the collapse of centralized sites. Although such an outflow usually lasts an insignificant period.

However, after the announcement by the California regulator of the closure of Silicon Valley Bank (SVB), the volume of transfers from centralized exchanges to decentralized exchanges exceeded $300 million per hour. A few hours later, the figure fell below $ 100 million per hour. A similar situation was observed last fall, when the largest cryptocurrency exchange FTX fell.

Amid the collapse of the SVB, the stablecoin USDC got rid of the dollar. Many users have started transferring USDC to decentralized exchanges and selling to save money. However, as Chainalysis representatives note, the demand for the stablecoin remains consistently high.

Analysts believe that this is due to the high level of trust in Circle and USDC - many traders simply wanted to earn and sell stablecoins after the recovery in value. Their plan succeeded - in just a few days, USDC restored its peg to the dollar.

Recall that after the restoration of the USDC peg to the US dollar, traders began to take profits, and the capitalization of the stablecoin fell by $1,74 billion.