Concern that one of the biggest bank bankruptcies in the US since 2008 will affect the leading stablecoin companies in the cryptocurrency market has boosted the native token of decentralized finance (DeFi) platform Liquity.
America’s 16th largest bank which and $209 billion funded Silicon Valley BankAfter the bankruptcy of SVB, the global markets, especially the American ones, were shaken. California’s Department of Financial Protection and Innovation (DFPI), while closing the bank in question, Federal Insurance Corporation (FDIC) was appointed as a counterparty to the bank’s insured assets.
The sudden bankruptcy of the SVB triggered a stablecoin crisis in the cryptocurrency market. Second largest stablecoin by market capitalization USD Coins(USDC), the company behind Circle made statements that it was affected by the bankruptcy. The uncertainty in the statements made investors nervous. The company said in a statement that its reserves in banks 25%and that these funds in 6 different banks While expressing that it is located in a distributed manner, to see the effects of the FDIC being a buyer, they are waiting added to the comments.
The crisis environment triggered by these developments specific to USDC is one of the biggest stablecoins in the market. Tether(USDT) speculations and Binance Coin The regulatory uncertainty over (BUSD) has pushed investors to exit exchanges rather than turn to the aforementioned stablecoins. As a result, investors embarked on a search for alternatives.
In this direction, the interest of investors has a positive impact on the ecosystem. who also owns the stablecoin project DeFi platform liquidity‘s native token LQTY gathered on the side. The price of LQTY, the native token of the platform, which has recently received Binance support, is at its lowest level in the day with the uncertainty over stablecoin companies after the SVB bankruptcy. $1.60rising from 38% appreciated and $2.20reached so far.
