The recent banking crisis, involving the closure of several banks such as Silicon Valley Bank, Signature Bank, and Silvergate, has sent shockwaves throughout the financial sector. As a result, investors are flocking to crypto alternatives, causing a surge in the prices of DEX and CEX tokens.
While it’s unclear whether the banking crisis is the sole reason for the increase in prices, some investors are gravitating towards specific tokens. In the past 24 hours, tokens such as OKB, GMX, dYdX, and GT have seen a significant increase in their value. OKB is up by 13%, GMX by 10%, dYdX by 8%, and GT by 7.5%.
According to industry experts, the broader crypto market has also seen an increase in value in the last day, with tokens related to tokenization, such as SNX, experiencing a nearly 8% rise in price. The overall market cap of the crypto market is now $1.08 trillion, representing a 5.59% increase in the last day.
However, the banking crisis has led to heavy losses in the stock market, particularly for banking institutions. Several banks have fallen in the past few weeks, including Silicon Valley Bank, Signature Bank, and Silvergate. HSBC acquired the U.K. division of Silicon Valley Bank for a single pound, while the Federal Reserve shut down Signature Bank, citing system risk as one of the reasons behind the decision.
The situation has led some in the industry to criticize the U.S. authorities for their alleged anti-crypto stance. A board member of Signature Bank called it a “strong anti-crypto message,” while others believe that crypto is not responsible for the banking problems. Nevertheless, the government is likely to seek greater control over the crypto market.
Despite the turmoil, Bitcoin and other assets remain strong, with BTC up by nearly 6% over the past 24 hours and valued at approximately $25,648 at the time of publishing.
The recent banking crisis has caused a significant shift in the financial landscape, with investors turning to crypto alternatives as a safe haven. The surge in DEX and CEX token prices highlights the growing importance of the crypto market, which could potentially reshape the financial industry in the years to come.