Blockchain research and analysis company Chainalysis has published a comprehensive report on countries’ crypto activities, focusing on the impact of the banking crisis in the United States and the difficult conditions in the crypto industry. The report also addresses the recent uncertainty in the crypto asset market and its effects on the industry. It is claimed that the effects of the banking crisis that emerged with the bankruptcy of many banks, especially Silicon Valley Bank (SVB), in the first half of 2023, continue to affect the crypto industry.
The Effects of the US Banking Crisis Continue
Blockchain research and analysis company Chainalysis has published a comprehensive report addressing countries’ crypto activities, the impact of the banking crisis in the US on the crypto industry, and the decline in the stablecoin market. The report evaluates the banking crisis that emerged in the US with the bankruptcy of many banks, especially Silicon Valley Bank, in the first half of 2023 and its effects on the crypto industry.
The banking crisis had a significant impact on the crypto industry during its occurrence. During this period, most cryptocurrencies witnessed significant percentage drops as the crypto asset market rapidly became uncertain.
In particular, the USDC suffered a significant blow during this period when it was revealed that Circle, the issuer of USDC, held over $3 billion in reserves at Silicon Valley Bank. USDC recorded large-scale declines in market value for months, and its market share also saw significant drops.
Despite months passing since the emergence of this banking crisis with consecutive bank bankruptcies, Chainalysis claims in its report that the impact of the crisis on the crypto industry remains strong. According to the blockchain research company Chainalysis, the crisis dealt a severe blow to institutional crypto activities.
Decline Continues in the Stablecoin Market
Chainalysis, in its report, also addresses the decline in the stablecoin market, stating that the market value, transaction volume, and market share of stablecoins have been declining sharply for months. It is also stated that the share of US-based companies in stablecoin activities is decreasing, resulting in the gradual shift of stablecoin services outside the US.
Furthermore, the blockchain research and analysis company Chainalysis claims that the banking crisis in the US has dealt a significant blow to institutional-scale crypto trading. It is stated that critical data regarding crypto trading activities have been on the rise since June, despite the ongoing effects of the crisis on the crypto industry.
