More people are downloading crypto apps like Coinbase, Binance, here’s why
According to real-time app data provider Apptopia, the top 10 crypto applications for exchanges and self-custodial wallets are up about 15% since Silicon Valley Bank (SVB) and two other lenders fell last week.
Demand for banking apps is falling
The recent upheaval in the US banking system appears to be shifting interest and demand towards crypto solutions. Trackers note that since last week’s crisis, there has been a notable increase in downloads of crypto-dapps that offer exchange and storage services.
According to Apptopia, the top 10 crypto apps, defined as Coinbase, Crypto.com, Trust, Binance, Bitcoin and Crypto DeFi Wallet, have Blockchain.com, KuKoin, Kraken, eToro and BitPay, which includes both exchanges and self-custodial wallets. up about 15% since Silicon Valley Bank’s stock fell 60% last week.
download crypto apps and the price of bitcoin goes up 15% in the week after SVB collapse.@TechCrunch with the story behind the numbers:
— Apptopia (@Apptopia) March 16, 2023
This is in stark contrast to the top 10 traditional banks and top 10 “digital-first” banking app downloads, which have fallen by around 5% and 3% respectively over the same period.
Last week, Silvergate Capital, Silicon Valley Bank, and Signature Bank closed or halted operations, prompting crypto companies, investors, and traditional users to attempt to move their assets. Last week’s events significantly affected Circle, the issuer of USDC, a stablecoin.
The circumstances surrounding the collapse of these banks increased questions about where people and companies should park assets and which devices are reliable. In the midst of this development, cryptoassets surged as the United States government and the Federal Reserve (Fed) intervened to prevent a widening of the crisis.
Bitcoin and Ethereum, two of the largest cryptocurrencies by market capitalization, have made impressive gains this week. BTC trades above $26,000 and remains the most dominant crypto asset.
The expansion in asset prices has seen the global crypto market cap rise 8.3% to around $1.1 trillion at the time of writing on March 17, according to CoinMarketCap data.
Fear of driving crypto prices
The banking crisis in the US is putting medium-sized and regional banks, such as First Republic, under pressure. In accordance ReutersFirst Republic had the third-highest share of uninsured U.S. deposits behind SVB and Signature Bank, at about $119.5 billion.
The top 10 traditional banking apps were down 5%. Interest fell in banking apps such as Capital One, Chase, Bank of America, Wells Fargo, Discover, Citi and US Bank.
Meanwhile, the top 10 “digital-first” apps saw a 3% decline as app users lost interest in Chime, Dave, Albert, Empower, Varo, MoneyLion, Current, Aspiration, Sable and Oxygen, among others.
According to Stefan Rust, CEO of Truflation, the current shift in investor sentiment is towards cryptocurrency positive and unexpectedly supported asset prices. He believes the situation is similar to what happened in 2020 when investors fled traditional markets during the COVID-19 pandemic in favor of alternative assets.
Feature image from Canva, chart from TradingView.
