More than $60 billion has been wiped from the crypto market in recent days, driven by the plunging price of bitcoin.
The world’s leading cryptocurrency suffered a flash crash on Friday following uncertainty surrounding the crypto-friendly bank Silvergate.
Bitcoin has so far failed to recover from the sudden drop in price, leading to fears among investors that the strong start to 2023 may already be over.
Data from leading price index CoinMarketCap shows that BTC’s price dropped by more than $1,000 in just 20 minutes, dragging prices down below $23,000.
“All of this comes as the crypto sector reels from Silvergate Bank’s warning that it may not survive another year,” CoinMarketCap wrote in its daily market analysis.
“A virtual Who’s Who of crypto firms have now announced they’re cutting ties with the embattled firm, with others going to great lengths to stress that they have no exposure to Silvergate.
“The latest drama is especially worrying, as Silvergate is (or was) one of the most popular providers of fiat on-ramps, and it could leave crypto businesses increasingly isolated from the banking sector.”
Despite the uncertainty surrounding Silvergate Bank, other crypto-friendly banks have seen considerable success regardless of the market downturn over the last year.
UK-based Revolut announced its first ever annual profit last week, citing soaring public interest in cryptocurrency.
The company, which has more than 25 million customers worldwide, said it hit revenues of $1 billion (?850 million) in 2022.
The fintech firm recently revealed plans to expand its crypto-related services by giving customers the opportunity to earn rewards by “staking” their cryptocurrency holdings.
Proof-of-stake cryptocurrencies like Ethereum (ETH) and Cardano (ADA) allow owners to generate new cryptocurrency by staking their holdings in order to secure the network.
“Whether you’ve been holding some crypto for a while or you just got started, there’s still so much potential to unleash – it’s time to put your crypto to work,” Revolut stated in a blog post announcing the new feature.
“Staking can be a complicated process – but with Revolut, it only takes a few steps to stake your crypto. All the heavy lifting is done for you and you’ll start earning automatically.”