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The illness of FTX led to a akin exodus from centralized exchanges, arsenic users disquieted they whitethorn suffer entree to funds during crises.
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The illness of Silicon Valley Bank (SVB) saw investors loading their bags with USD Coin (USDC), on with an exodus of funds from centralized exchanges (CEXs) to decentralized exchanges (DEXs).
Outflows from centralized exchanges often spike erstwhile the markets are successful turmoil, explained blockchain investigation steadfast Chainalysis successful a March 16 blog post, arsenic users are apt disquieted astir losing entree to their funds erstwhile exchanges spell down.
Funds sent from CEXs to DEXs pursuing SVB’s collapse. Source: Chainalysis.Data from Chainalysis shows that hourly outflows from CEXs to DEXs spiked to implicit $300 cardinal connected March 11, soon aft SVB was unopen down by a Californian regulator.
A akin phenomenon was observed during the illness of cryptocurrency speech FTX past year, amid fears that the contagion could dispersed to different crypto firms.
However, information from the blockchain analytics level Token Terminal suggests that the surge successful regular trading volumes for ample DEXs was short-lived successful some cases.
Daily trading volumes for ample DEXs from September to March. Source: Token Terminal.USDC was identified arsenic 1 of the apical assets being moved to DEXs, which Chainalysis said was unsurprising fixed that USDC depegged aft stablecoin issuer Circle announced it had $3.3 cardinal successful reserves stuck connected SVB, prompting galore CEXs similar Coinbase to temporarily halt USDC trading.
Related: Circle clears ‘substantially all’ minting and redemption backlog for USDC
What was surprising, Chainalysis noted, was the surge successful USDC acquisitions connected ample DEXs specified arsenic Curve3pool and Uniswap, saying: “several assets saw ample spikes successful idiosyncratic acquisition, but nary much than USDC.”
Token acquisitions connected Uniswap from March 7 to March 14. Source: Chainalysis.Chainalysis theorized that this was owed to assurance successful the stablecoin, with immoderate crypto users loading up connected USDC portion it was comparatively inexpensive and betting that it would regain its peg — which it did connected March 13, according to CoinMarketCap.
USDC’s little depeg from March 11 to March 13. Source: CoinMarketCap.
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