The recent legal actions taken by the United States securities regulator, the Securities and Exchange Commission (SEC), against major cryptocurrency exchanges Coinbase and Binance have sent shockwaves through the crypto market.
As a result, decentralized exchanges (DEXs) have experienced a remarkable 444% increase in trading volumes over the past 48 hours.
DEXs Witness Unprecedented Trading Volume Surge:
Data from CoinGecko reveals that the combined daily trading volumes on three leading DEXs – Uniswap v3 on Ethereum, Uniswap v3 on Arbitrum, and PancakeSwap v3 on Binance Smart Chain (BSC) – have surged by over $792 million between June 5 and June 7.
These DEXs account for 53% of the total DEX trading volume, highlighting the substantial increase in investor activity within the decentralized ecosystem.
Curve DEX Experiences 328% Spike:
Another notable DEX, Curve, which facilitates the trading of stablecoins, has witnessed a significant surge in trading volume, recording a remarkable 328% increase.
Notably, the majority of trading on Curve involves the popular stablecoins USD Coin (USDC) and Tether (USDT). The trading volumes on DEXs even briefly surpassed those of Coinbase during the recent memecoin frenzy, as investors sought alternative avenues to access these tokens.
Binance Faces Substantial Net Outflows: In light of the SEC’s actions, Binance, one of the world’s largest centralized exchanges, has seen net outflows – the difference between assets entering and leaving the exchange – amounting to a staggering $778 million.
However, it’s important to note that the current outflows represent only a fraction of Binance’s total reserves, which currently stand at over $8 billion in stablecoin balances.
