Swaps volume on web3 wallet provider Metamask set an all-time high over the weekend as the demise of leading crypto-friendly banks Silvergate and Signature sent shockwaves across the industry.
On a forthcoming edition of The Scoop podcast with Frank Chaparro, Metamask group manager Dan Finlay claims that a significant portion of that was caused by the uncertainty around the precise outcome of those bank closures.
"It's a lot of just speculative panic. People aren't sure what they can trust. And everybody seems to want something stable, making some pretty big moves in response to this situation."
Circle, a USDC issuer, had previously disclosed on Friday that Silicon Valley Bank, which was shut down by state authorities the same day, had $3.3 billion in reserves. Regulators said on Sunday that any deposits will be returned in full.
"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."
As activity increased, Metamask earned around $1.5 million in exchange fees, according to Finlay.
"People are onboarding, people are fleeing to crypto in many situations... 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."
As a result, it may be "fantastic" for crypto even though there may be a systemic danger. A strange mixed gift, according to Finlay.