The trading volume on the top three decentralized exchanges (DEX) has experienced a significant surge of 444% in the past 48 hours. This increase in volume can be attributed to the recent legal actions taken by the United States Securities and Exchange Commission (SEC) against cryptocurrency exchanges Coinbase and Binance, leaving crypto investors seeking alternative platforms.
Aggregate data from CoinGecko reveals that the total daily trading volumes on Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC) have collectively risen by over $792 million between June 5 and June 7. These three DEXs account for 53% of the total DEX trading volume over the last 24 hours. Furthermore, the trading volume on Curve, a DEX specializing in stablecoin trading, has spiked by 328%. Currently, the majority of trading activity on Curve involves U.S. dollar-pegged stablecoins such as USD Coin (USDC) and Tether (USDT).
During the memecoin frenzy in May, trading volumes on DEXs briefly surpassed those of Coinbase. Crypto investors flocked to decentralized protocols like Uniswap to purchase tokens like Pepe (PEPE) and Turbo (TURBO), which were not listed on major centralized exchanges.
Meanwhile, Binance experienced net outflows, with a staggering $778 million difference between assets entering and exiting the exchange. However, it should be noted that the current net outflows are still relatively lower compared to Binance’s total reserve, as the exchange currently holds a stablecoin balance of over $8 billion.
This surge in DEX trading activity comes in the midst of a series of legal actions initiated by the SEC against crypto exchanges. On June 6, the SEC filed a lawsuit against Coinbase, accusing the exchange of offering unregistered securities and operating as an unregistered securities broker, among other charges. The day before, on June 5, the SEC filed a similar lawsuit against Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ), alleging that Binance failed to register as a securities exchange and was illegally operating in the U.S. CZ was sued as a “controlling person” in relation to the charges.
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