Decentralized exchange trading volumes surged 444% in 48 hours following SEC crackdown on Coinbase and Binance.
Daily trading volume on top 3 DEXs increased by over $792M between June 5 and June 7.
Net outflows on Binance reach $778M as DEX volumes briefly surpass those of Coinbase.
US securities regulator against cryptocurrency exchanges Coinbase and Binance have caused a ripple effect in the crypto world.
This has resulted in a significant increase in the median trading volume across the top three decentralized exchanges (DEX) in the past 48 hours, as investors try to find a safe haven.
According to aggregated data from CoinGecko, Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum) and Pancakeswap V3 (BSC) — which account for 53% of the total DEX trading volume in the last 24 hours — saw an increase of more than $792 million between June 5 and June 7. This represents an increase of 444% in median trading volume across the top three DEXs.
Trading volume on Uniswap V3 (Ethereum) in the last 7 days. Source: CoinGecko.
In addition to this, the trading volume on Curve, a DEX that allows for the trading of stablecoins, spiked by 328%. Trading activity on Curve is currently focused on trading the U.S. Dollar-pegged stablecoins USD Coin and Tether.
It is important to note that trading volumes on DEXs briefly surpassed those of Coinbase during Mays memecoin frenzy. The sudden surge in trading activity was largely driven by investors rushing to purchase tokens such as Pepe (PEPE) and Turbo (TURBO) through Uniswap and other decentralized protocols, as the memecoins were not listed on major centralized exchanges.
As DEX volumes surged, net outflows on Binance reached a staggering $778M. It is worth noting that current net outflows are still much lower than the exchanges total reserve. Binance maintained a stable coin balance of more than $8 billion.
This market frenzy is taking place against the backdrop of a swathe of legal action against crypto exchanges by the Securities and Exchange Commission (SEC). On June 6, the SEC sued Coinbase alleging that it offered unregistered securities and acted as an unregistered securities broker among other charges. A day earlier, the SEC sued Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ) under similar allegations. The SEC alleged that Binance failed to register as a securities exchange and was therefore illegally operating in the U.S.. According to the charges, Zhao was sued as a “controlling person.”