#liquidity

The open interest in bitcoin futures reached an annual high of $12 billion. This indicates a notable increase in liquidity, which is a vital factor for the markets. Also, trading volumes on decentralized exchanges hit all-time highs over the past 16 months.

According to the March 2023 reserve report , a total of 8.7 billion USDC is being held in six banks. However, three of these banks – Silvergate, Signature, and Silicon Valley Bank – are currently experiencing liquidity and solvency issues. The situation is especially dire for Silicon Valley Bank, which held 3.3 billion USDC and has been forced to close by the California Department of Financial Protection and Innovation. The USDC price has dropped by 15%, to $0.86, in response to these developments. Additionally, the DAI stablecoin has fallen by 10%, as up to 50% of its collateral is held in USDC. Currently, US Treasury bills account for 77% of the USDC reserves. The remaining 23% is held in cash at various banking institutions. The fate of these funds will depend on the outcome of the bankruptcy process for the affected banks and the amount of funds that can be recovered.

Lending protocol Everlend Finance has announced that it has ceased operations. The reason is simple: a lack of liquidity. The codebase is left open-sourced by the developers so that others can continue working on the project. However, the team also maintains that Everlend is a fantastic product that will eventually be very convenient, and that Solana is the most effective network for its implementation. The app is now in withdrawal-only mode