The end of the Silvergate crypto payment network raises uncertainty.
As the US’s network of payment service providers contracts, it is getting harder for cryptocurrency companies to acquire funds to purchase digital assets.
Although the US dollar and dollar-pegged stablecoins continue to serve as the foundation of the cryptocurrency industry, their sway is eroding as a result of the failure of the FTX crypto exchange.
The market share of dollar-denominated bitcoins continues to fall.
While trades in US dollars are typically preferred over stablecoins like Tether, Clara Medali, director of research at Kaiko, stated in a statement that the decline in the value of the US dollar following the FTX crash may be attributable to a decrease in institutional trading activity.
Traditional bankers serve a crucial role as a reliable intermediary between their platforms and physical currency, but even though the crypto industry has long detested banks, banks are increasingly blocking crypto startups in the US.