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Silvergate Stock Price Has Nosedived as Bankruptcy Fears Rise
Silvergate stock price has been in a steady downward trend as its exposure to the crypto industry has worsened. The shares tumbled by more than 40% on Thursday as it published its interim results and laid off employees. It plummeted to a record low of $12.10, which was about 95% from its all-time high.
Crypto bank is collapsing
Silvergate Capital has had a remarkable fall from grace. The company, which was previously a small community bank, gained popularity when it embraced cryptocurrencies. It shifted its busines model to focus more on crypto companies and other players in the industry.
Silvergate provides its solutions across two business segments: Digital Currency and Commercial Banking. The former provides solutions like Silvergate Exchange Network, SEN Leverage, and institutional custody. On the other hand, the former business provides traditional business banking solutions.
Silvergate stock price has been in a strong bearish trend in the past few months because of the collapse of cryptocurrencies. Bitcoin moved from an all-time high of near $70,000 to about $16,000. Similarly, other coins lost over 60% of their total value. Silvergate, like Coinbase, has a close correlation to crypto prices.
Silvergate Capital’s challenges worsened when FTX and Alameda Research collapsed. The two companies were some of its biggest clients. As such, as existential risks rose, the company saw significant outflows. Its total customer deposits dropped to $3.8 billion on December 31 from $11.9 billion in September.
Silvergate decided to cut about 200 jobs in a bid to conserve cash. It said that it was still a financially sound bank with ovr $3.8 billion in deposits and $5.6 billion of government and agency-backed debt. It hopes to sell some of the debt. Some analysts believe that Silvergate could have a complete collapse if cryptocurrencies experience the same headwinds it had in 2022.
Silvergate stock price forecast
The daily chart shows that the Silvergate share price has been in a strong sell-off for months. It managed to move below the important support level at $51.87, the lowest level on July 5. It has moved below all moving averages. Therefore, the outlook of the stock is still weak considering that the Fed pointed that it will continue hiking rates in 2023.
BNB price has noted significant gains over the past few days, surging past the psychological resistance of $300. The native cryptocurrency of the Binance Exchange has surpassed Solana to regain its position as the fourth-largest cryptocurrency by market cap. The digital currency has been rallying lately with a 7-day profit of more than 15%. Additionally, BNB has clocked a phenomenal gain of 38% in the month to date.
Binance Coin Outlook
BNB price has been on a strong bull run for the past week, breaking out of its consolidation. Even so, the asset has experienced a correction in its uptrend over the past 24 hours but remains above the crucial level of $300. BNB’s total market cap has decreased by 4% over the past day to $48 billion, while the total volume of the asset traded over the same period dipped by about 15%.
Over the past year, Binance Coin has had to cope with Fear, Uncertainty, and Doubt (FUD) on the back of the regulatory troubles of its underlying exchange. Earlier, the BNB price touched a low of $223.50, a few days after its former CEO, Changpeng Zhao, pleaded guilty to money laundering charges. However, the cryptocurrency has managed to rebound 46% in value since then.
The recent price rally has been associated with various positive developments in the Binance ecosystem, including the Introduction of the Isolated Margin Auto-Transfer Mode. This feature enables…
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
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