Secret network is a privacy-focused blockchain that lives in the cosmos ecosystem. Secret encrypts inputs, outputs, and states of transactions to preserve the privacy of transacting parties. $SCRT is the native token of the Secret network which is also used for governance purposes.

In this post, we want to analyse how $SCRT swaps react to major international news especially those about crypto regulation. To embark on this investigation, we shall take a look at the swap volume of assets swapped to $SCRT over the past 3 months.

From the chart above, we can see that daily swaps volume to $SCRT generally falls between 100k-400k $SCRT. Over the past 3 months, $SCRT has crossed the 400k threshold 3 times on April 2, April 27, May 12, and June 3. In April and recently in June, there has been news about crypto regulation with a new bill being passed by the U.S Senate.

However, the highest swap volume recorded in the last 3 months happened on May 12 with a record trade of 1.2m $SCRT. This particular week in May is popularly known as the volatile week where a $UST lost its peg and sent ripples across the wider crypto ecosystem.

Therefore, I believe that the increase in $SCRT is not caused by major news about privacy/politics but rather due to wider market effects.

Theory: Price action is responsible for $SCRT swaps

Allow me to present another theory to explain the increase in swap volume; $SCRT price action. The average crypto user wants to buy low and sell high, so we can see from the price action below that the increases in swaps to $SCRT happened when users perceive a trend.

When there is a downtrend, users try to buy the dip, and when there's an uptrend, traders try to ride the trend. This trading trend within the market is accountable for April 2, April 27, May 12, and June 3 $SCRT swap trends.