Silicon Valley Bank’s (SVB) high-profile implosion last week whipped up a frenzy of decentralized finance (DeFi) transactions, according to market intelligence platform DappRadar.
DappRadar notes in a new report that DeFi tends to be highly susceptible 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 reserves stuck in the collapsed SVB. The second-largest stablecoin by market cap dropped as low as $0.8788 before reclaiming its peg on Monday.
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This rollercoaster had a ripple effect on the DeFi sector, explains DappRadar.
“On 11 March, following the SVB crash and USDC depegging, the DeFi market experienced a significant drop in its TVL, falling by 9.6%
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