Metamask sees swaps volume hit all time high over weekend

Quick Take

  • Metamask saw a record volume of swaps over the weekend as the demise of Silvergate, SVB and Signature unfolded. 
  • People were likely speculating over where to keep their funds safely, Metamask group manager Dan Finlay says on an upcoming episode of The Scoop.

Swaps volume on web3 wallet provider Metamask hit an all-time high over the weekend as the fall of top crypto-friendly banks Silvergate and Signature sent shockwaves through the sector.

A big part of that was linked to the uncertainty over exactly how those bank closures would play out, Metamask group manager Dan Finlay says on an upcoming episode of The Scoop podcast with Frank Chaparro.

"It's a lot of just speculative panic. People aren't sure what they can trust. And everybody seems to want something stable," he said. People were "making some pretty big moves in response to this situation."

USDC issuer Circle had announced Friday that it had $3.3 billion in reserves stuck Silicon Valley Bank, which was shuttered by state regulators the same day. On Sunday, regulators said that any deposits would be made whole.

"People were betting, they were freaking out that some of their stablecoins were going to drop. DAI even dropped because most of its backing is on USDC now," Finlay said.

 

Metamask made around $1.5 million in swap fees as volume spiked, Finlay said.

"People are onboarding, people are fleeing to crypto in many situations," he said. "We see that every time there's one of these systemic shocks, people kind of look at it again and they're like 'hey, wait, that's holding up.'"

So while there might be a systemic risk, it might also be "extremely good" for crypto. "It's kind of a weird mixed blessing," Finlay said.


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Catarina is a reporter for The Block based in New York City. Before joining the team, she covered local news at Patch.com and at the New York Daily News. She started her career in Lisbon, Portugal, where she worked for publications such as Público and Sábado. She graduated from NYU with a MA in Journalism. Feel free to email any comments or tips to [email protected] or to reach out on Twitter (@catarinalsm).

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