With the collapse of Silicon Valley Bank, crypto investors shifted from centralized exchanges (CEX) to decentralized (DEX) exchanges.
Crypto investors seem to have warmed up to DEXs even more, as the banking crisis has had a huge impact. The FTX crisis experienced in the past period had stopped stock market users from accessing funds, and as a result, interest in DEXs gradually decreased. Especially when the problems in banks reach a serious level, the DEX side seems to have been adopted again by crypto investors. The bankruptcy of Silicon Valley Bank greatly affected the transfer onchain data of USDC Coin (USDC). Popular onchain platform Chainalysis has released reports on the situation.
Bank Crises Increased Orientation for DEXs
The crises of the banking industry, which began with Silicon Valley Bank and continued with Signature Bank, confused financial investors. After the recent events, the concept of centralized/decentralized has become more important for investors.
In a March 16 article, Chainalysis stated that when the stock markets are down, investors become anxious and “may not be able to withdraw their funds.” Chainalysis data confirms that hourly outflows from CEXs to DEXs rose to over $300 million shortly after the SVB disaster.
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