Crypto Market Sees Boost as Banking Networks Falter – Blockchain News, Opinion, TV and Jobs

The cryptocurrency market is seeing a surge in popularity as traditional banking networks struggle to keep up with demand. With the recent collapse of Silicon Valley Bank, people are increasingly looking for alternative ways to control their money and ensure its safety.

Bitcoin, in particular, outperformed 97.6% of the top 500 public companies in the US. In fact, since March 10, the price of bitcoin has increased by 37.06%, beating returns this year from 488 S&P companies, including FedEx, Apple, and Amazon.

According to Cryptomaniaks.com, a leading crypto education platform, the price of bitcoin has jumped from $20,376.32 to $27,929.17 since March 10. This means that only 12 companies in the S&P 500 have achieved returns of more than 35% this year to date.

The spike in bitcoin’s price comes as many investors are turning to stablecoins to move money in the absence of traditional banking networks. Stablecoins are a type of cryptocurrency whose value is pegged to another asset, usually the US dollar.

JPMorgan reported just that Stablecoin trading volumes spiked even higher since March 8, when crypto-friendly bank Silvergate announced its voluntary liquidation and ceased operations. Tether (USDT) has captured a larger share of the stablecoin market as a result.

The collapse of banking networks such as Silvergate, Silicon Valley Bank and Signature Bank has affected crypto companies in various ways. Crypto companies with diversified banking partners, such as some exchanges, were less affected. However, in the long run, it is critical for the crypto ecosystem to replace the banking networks it has lost so that fiat currency can be transferred efficiently and securely between market participants, ensuring the stability of the stablecoin universe.

Moreover, the stricter US regulatory stance could push crypto market participants to banking networks in Europe and Asia.

With the ongoing instability of traditional banking networks and the impressive performance of bitcoin, it is no surprise that more and more people are turning to cryptocurrencies as a safe and efficient way to handle their finances.