The high-profile collapse of Silicon Valley Bank (SVB) last week spurred decentralized finance (DeFi) efforts, according to market intelligence platform DappRadar.
DappRadar notes in a new report that DeFi is generally very sensitive to market concerns and crashes.
Last weekend, USD Coin (USDC) lost its peg to the US dollar following news that stablecoin issuer Circle had $3.3 billion of its $40 billion in assets stuck in the collapsed SVB. The second largest stablecoin by market capitalization fell as low as $0.8788 before rebounding on Monday.
This rollercoaster had a ripple effect on the DeFi sector, DappRadar explains.
“On March 11th, after the collapse of SVB and the depegging of USDC, the TVL value of the DeFi market decreased by 9.6% from $79.28 billion to $71.61 billion. The news caused panic among investors, leading to significant selling and a decline in TVL.
Fortunately, on Monday the 13th, the USDC reserve deposit held at Silicon Valley Bank was fully available to the public, helping to stabilize the market. This announcement led to a 13% spike in DeFi TVL to $81.15 billion.
TVL is short for “total value locked”, which represents the total capital of smart contracts on the blockchain. TVL is calculated by multiplying the amount of collateral locked in the network by the current value of the property.
DappRadar notes that the number of individual active wallets interacting with DeFi contracts increased from 421,026 on March 8 to 477,094 on March 11, a 13 percent increase. The number of transactions increased by 23% from 1,356,483 to 1,668,992.
Decentralized exchange (DEX) Uniswap (UNI) was behind this surge in activity, according to the market intelligence platform.
“Uniswap V3, one of the most popular decentralized exchanges, experienced a significant increase in UAW, surpassing 67,000 on Saturday, March 11, with a volume of $14.4 billion, the highest figure ever recorded for V3. 67,000 UAW was the highest registered on Uniswap Dapp since summer 2021.
In addition, Uniswap V3 avg. the event total on Saturday was $170,080, almost double the average, indicating that Ethereum DeFi whales were very active last weekend.
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