With the recent trembles in the banking systems across the world, the decentralized financial system has an opportunity to shine. Apparently it seems to do the same as different factors indicate people flocking towards crypto. Rising cryptocurrency prices to increase in crypto app downloads, as per an app data provider Apptopia, shows interest within the burgeoning asset class. Fall of several banking institutions in recent weeks is likely to boost the changing financial interests scenario.
The current scenario echoes what happened in the past with the banking institution. Past weeks had seen the fall of prominent US banks like Silvergate, Signature and Silicon Valley Bank. Switzerland based global investment bank Credit Suisse is going through its worst, the stock price dropped to its lowest, little over 2 USD. Commercial bank First Republic Bank is also losing hopes, credit rating agencies downgrading the bank’s ratings.
Banking stocks value are dwindling and the scorching heat is experienced by equity and stock markets around the world. The crypto market and stock market was seen to move in tandem in many past instances, whether it is to go up or down. However, the same is not happening with the banking stocks and cryptocurrencies.
On the other hand, the global crypto market is trading in the green zone with major cryptocurrencies gaining more value amid the chaos. The market capitalization of the global crypto market stands at 1.12 trillion USD after around 4% increase from the last day. Bitcoin (BTC) has gained more than 30% in the last seven days and is currently trading at 26,158 USD while Ethereum (ETH) is up by over 22% during the same timeframe and trading above 1,720 USD.
Cryptocurrencies came into existence with the inception of the first cryptocurrency Bitcoin (BTC). The instance came in the wake of 2008 financial crisis born out of once a leading US bank, Lehman Brothers, became insolvent. The Great Recession followed after the instance made people not to completely rely and trust the mainstream financial system.
Financial uncertainties themselves acted as a potential reason for cryptocurrencies’ existence. The ongoing situations are also similar and are acting to trigger the growth of the nascent financial sector.
Bank Collapse Pushes Crypto App Downloads
In the meantime, the crypto applications related to leading exchanges and wallets are also on the rise. Top applications, including Coinbase, Crypto.com, Blockchain.com, Crypto DeFi Wallet, Kraken, KuKoin, and several others, are reportedly rising up to 15%. The crypto app gaining momentum came in contrast to California-based leading tech and startup-focused Silicon Valley Bank heavily losing its share price. This also infers people flocking to look for more ‘bankless’ alternatives.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/03/17/will-recent-banking-crisis-help-establish-crypto-market-again/