Here are the biggest losers in the US banking crisis

There was a panic in the financial markets when Silicon Valley Bank collapsed under the pressure of large-scale withdrawals by depositors.

The saga spilled over to crypto via Circle’s USDC, which had reserves at the bank. It lost its peg on the news that it was a customer at SVB. This led to concerns that the stablecoin was no longer fully backed.

However, it was later confirmed that Circle’s reserves were secure, which provided some relief to the markets. Both centralized and decentralized markets experienced turmoil due to the failure of SVB.

U.S. regulators confirmed they took over Silicon Valley Bank (SVB) to quell the panic among depositors and prevent the spread of the crisis in the banking system. This brought back memories of the response to the 2008 financial crisis and the COVID-19 pandemic in 2020.

Within 48 hours, regulators formulated emergency measures to guarantee all deposits held at SVB and crypto-lender Signature Bank. Additionally, the Fed launched a lending facility to support other banks, ensuring the fulfillment of depositors’ demands.

Major cryptocurrency exchanges see a significant decrease in market depth

Market depth refers to the number of buy and sell orders at different price levels, indicating the market’s liquidity level. The decrease in market depth is a significant concern for cryptocurrency traders as it can lead to increased price volatility.

A decrease in market depth can make it more difficult for traders to execute large orders without moving the market price.

According to market data from Kaiko, major cryptocurrency exchanges have seen a substantial decrease in market depth due to disruptions in USD payment channels and the failures of crypto banks.

Coinbase and Binance were hit the hardest, dropping 50% and 29%, respectively. Meanwhile, Binance Global experienced a decrease of 13% in market depth.