• Amid the banking turmoil, cryptocurrency has displayed its stability, settling $650 billion and handling 9 million transactions in March.
• Demand for more transparent financial services is driving Bitcoin’s value and transaction growth in the face of traditional banking challenges.
• Long-term Bitcoin holder supply has reached an all-time high, with nearly 70% of the total circulating supply inactive for a year.

As the national banking crisis takes its toll, cryptocurrency has proven to be a strong and dependable asset, with important data points from Ark Invest’s March report showing its resilience. Throughout this time of instability, Bitcoin settled $650 billion, facilitated around 9 million transactions, and issued roughly 26,000 new BTC at a constant 1.8% inflation rate. The leading digital asset also attracted around 13 million new addresses and generated almost $700 million in revenue for miners securing the network.

In March, bank deposits dropped by 4.1%, with the Federal Reserve’s decisions leading to the bankruptcy of Silicon Valley Bank and other regional banks showing signs of instability. Despite this, Bitcoin’s value rose 49% from a low of $19,500 on March 10th to $29,150 on March 30th, demonstrating its potential as a safe haven during financial crises.

The Ark Invest report further highlights the growing demand for more transparent, verifiable, and decentralized financial services in the face of the banking crisis. With the number of transactions in the Bitcoin network consistently staying above 250k throughout 2023 and reaching 277k in March, the highest level since early 2021, it is clear that consumers are searching for alternatives to traditional banking systems.

During this period, the supply of Bitcoin held by long-term investors reached an all-time high, with nearly 70% of the total circulating supply remaining inactive for at least one year. This strong holding behavior shows increasing confidence in the cryptocurrency’s potential as a reliable store of value.

In addition, Ark Invest’s report underlines that, as depositors take out their money from banks at a rapid rate, leading to the most significant year-over-year decline since 1948, Bitcoin has become an attractive option for investors. This shift is reportedly putting extra pressure on the traditional banking system and causing banks such as Silicon Valley Bank to shut down.

The post Cryptocurrency Proving Resilience Through Banking Crisis appeared first on Coin Edition.

See original on CoinEdition