RiskFi Report: April 2023 Outlook Summary

DeFI

RiskFi utilizes both qualitative and quantitative analysis of macro variables, providing comprehensive risk intelligence data on cryptocurrencies.

New report with four new alt coins

In our latest "Defi Risk report - April 2023 outlook" we bring risk intelligence covering four alt coins - Ethereum, Solana, Matic, and MakerDAO, in addition to Bitcoin.

March bank runs

In March 2023, the US economy witnessed a tumultuous time. It began with the Federal Reserve raising the interest rate by 25 basis points to contain the high inflation. However, the consistent hikes resulted in unintended bank runs at Silicon Valley Bank, Silvergate Bank, and First Republic Bank. 

Stablecoin tumbles

Stablecoins are susceptible to financial system disruptions, they are directly impacted by bank runs. In particular, Circle's USDC lost its market capitalization as it held reserves in SVB. Additionally, Binance facing a lawsuit from US regulators for alleged willful evasion, further worsened the situation for its investors as it lost market capitalization.

Bitcoin rises

The Bank runs followed by the Stablecoins loss in market capitalization, catapulted the Bitcoins rise. Bitcoin rose from a market cap of $248 billion at the beginning of March to $438 billion by the end of march. Figure below shows the trend.