Banks That Backed Crypto Banks Seems to Struggling in 2024- Data

In the past few months, a significant shift of interest of traditional banking giants was seen towards the crypto industry and dozens of banks debuted the crypto market in 2023.

However, the year acted against the aims of Banks such as Silicon Valley, First Republic, Signature, Silvergate, and Pacific Western Bank. Some of these filed for bankruptcy. 

Following these bankruptcies, the sector flourished with several regional banks in the United States having entered the industry. Many other banks are eying to enter the crypto market in 2024.

According to American Banker, the New York community bank’s shares fell sharply by almost 40%; the decline came after the bank announced that it was cutting dividends and charging off multiple real estate loans.

The bank that bought assets from Signature Bank in the previous year became a Category IV bank in 2023 after crossing $100 Billion in total consolidated assets. A famous crypto lender also filed for bankruptcy in 2023, followed by the demise of FTX. 

Before the collapse of FTX, the pace of bank entrance in the crypto sector was appreciable, but a slight decline in the adoption rate in traditional banks is seen. Many market observers claimed after the collapse that the event threw out hundreds of Billions for the market. 

Most recently, FTX’s attorney said its restructuring plan did not aim to ‘reboot’ the firm. Instead, the customers’ funds stuck with the exchange will be fully refunded.  

Crypto Market Updates

In the past 24 hours, the market capitalization of the entire crypto market slipped 1.35% and was $1.62 Trillion as of writing. XRP and FTT are among the leading losers of the intraday time frame. 

The total volume in DeFi is currently $6.06 Billion, 9.94% of the whole crypto market 24-hour volume, and the volume of all stablecoins is now $56.9 Billion, which is 93.36% of the entire crypto market 24-hour volume.

The pioneer of the crypto market, Bitcoin, was trading at $42,175, and in the past 24 hours, it faced a rejection of 1.44%, but it is still trading at a profit of 5.38% in terms of weekly trading sessions. 

FTT slipped significantly in the past 24 hours and lost 25.98% of its price. Market analysts predict that the decline is fully backed by the statement that the bankrupt crypto exchange will not be rebooted. 

Ethereum, the second most talked about token, is still struggling below $2,500, and when writing, it was trading at $2,290. Similarly, its trading volume and market capitalization have also shown adverse movements. 

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.