CryptoQuant data shows that the volume of transfers denominated in BTC has dropped by 35% in the last 24 hours. At the same time, the total number of transactions on the Bitcoin blockchain decreased by 17% and the number of active addresses decreased by 10% over the same period.
According to CoinGecko data, bitcoin trading volume averaged about $25 billion in March, compared to about $36 billion in February.
“We also saw a notable drop in trading volumes across the ecosystem when news broke about Silvergate’s financial woes, coupled with the fall in the price of Bitcoin,” said the Paris-based market maker and securities firm. Guilhem Chaumont, CEO of company Flowdesk, said. CoinDesk for notebooks.
Silvergate was one of the leading fiat payment rails in the cryptocurrency market, providing traditional banking services to exchanges and market makers. As such, trading volumes have declined since the Silvergate issue was made public.
Chaumont said trading has been quiet since then, suggesting the initial shock was priced in while traders digested the situation.
“There’s definitely a ‘calm before the storm’ vibe. So the market hasn’t shaken it off. FTX has made us all very aware that anything can happen.” He said, “That said, things could go either way, meaning news of a reassuring solution could return the confidence that characterized the first two months of 2023. It means there is.”
The demise of Silvergate could accelerate the shift towards dollar-pegged stablecoin-denominated trading pairs like Tether (USDT).
“With the death of Silvergate, stablecoins are likely to become even more popular among traders. We will move it to another place,” crypto data provider Kaiko said in a note Monday.
Most of the trading volume is already concentrated on the USDT pair. According to data tracked by Kaiko, the BTC/USDT pair now accounts for over 90% of his trading volume, up from his 3% in 2017.
At the same time, the number of listings of new cryptocurrency-USDT pairs is decreasing.
According to CoinGecko data, daily trading volume in USDT has averaged $32.3 billion per day so far in March, down from an average of $47 billion per day in February.
