Meanwhile, banking app downloads declined
Following a shakeup in the US banking system over the past week, cryptocurrency exchanges and wallets gained momentum as some sought bank-free alternatives.
The top 10 crypto apps for exchanges and wallets are up about 15% since Silicon Valley Bank shares plunged 60% last week, according to a chart from real-time app data provider Apptopia. The top 10 crypto apps were defined as Coinbase, Crypto.com, Trust, Binance, Bitcoin and Crypto DeFi Wallet, Blockchain.com, KuKoin, Kraken, eToro, and BitPay.
Meanwhile, the top 10 traditional banks and top 10 “digital-first” banking app downloads have fallen over the same period, by around 5% and 3%, respectively. The top 10 banking apps include Capital One, Chase, Bank of America, Wells Fargo, Discover, Citi, and US Bank, among others. The top 10 digital apps were Chime, Dave, Albert, Empower, Varo, MoneyLion, Current, Aspiration, Sable, and Oxygen.
The divergence in downloads points to a general concern in the US by customers amid the recent banking crisis.
Last week, Silvergate Capital, Silicon Valley Bank, and Signature Bank closed or were closed, resulting in crypto firms, investors, and traditional users rushing to move their assets.
The closure of these banks raised bigger questions about where people and businesses should park assets and which banks they can (or can’t) trust.
Other midsize and regional banks, including First Republic, have come under pressure after SVB’s collapse. First Republic had the third-highest rate of uninsured US deposits behind SVB and Signature, with about $119.5 billion in uninsured deposits, according to Reuters.
The crypto market is showing “positive contagion” after the SVB collapse, similar to what happened in 2020 when investors abandoned traditional markets during the COVID-19 pandemic in favor of alternative assets, Stefan Rust, CEO of data aggregator of inflation Truflation and former CEO of Bitcoin.com, previously told TechCrunch+.
In the wake of all this chaos, bitcoin and ether, the largest cryptocurrencies by market capitalization, saw a seven-day rise of around 15% and 9%, respectively, at press time, according to data from CoinMarketCap. Global market capitalization for all cryptocurrencies also rose 8.3% over the same period to around $1.1 trillion, slightly below Tuesday’s weekly high of $1.14 trillion, the data showed.
The market madness has apparently created bullish sentiment in the crypto economy; As traders responded positively to the news, the overall market capitalization increased over the week and crypto app downloads increased.