Silvergate Bank, US’s largest crypto bank announced its liquidation. Major Crypto asset deepens their base outside the US
In the face of regulatory pressure, Silvergate Bank shut down its operations on Wednesday—the Bank wind up its full repayment of all deposits. US officials are cracking down on cryptocurrency projects after the recent turmoil caused by the FTX bankruptcy and Alameda Research.
In the line of events, Silvergate said it was delaying the release of its annual report, in part because of ongoing investigations by US authorities. Due to these events, the crypto major’s Bitcoin and Ethereum base shrank in US exchanges.
Digital asset data provider Kaiko revealed that the US-based exchange’s crypto liquidity decreased as compared to other international exchanges.
Further, the decision by Silvergate capital to wind up its instant payments network might boost stablecoin adoption among investors in crypto trading. With the rise of stablecoins, the number of new dollar pairs on exchanges dropped from 400 to 326 in the previous year.
Bitcoin traders are taking a breather as the market continued to digest the collapse of Silvergate Bank. As per Cryptoquant, the transfer volume denominated in BTC dropped 35% in 24 hours. For the month of March, bitcoin’s average trading volume is at around $25 billion as compared to $36 billion in the previous month.
The crisis extended to the second-largest cryptocurrency by market cap Ethereum (ETH) also. Traders look hesitant to open up aggressive bids causing ETH price to remain subdued. However, as per the On-chain data, a dormant whale wallet moved out of 10,266 of its Ethereum reserve in multiple transactions amid the recent price dip.
