Decentralized Exchanges (DEX) Experience Surge in Trading Volumes Despite SEC’s Move Against Coinbase and Binance
The recent legal action taken against the centralized exchanges, Coinbase and Binance, by the US Securities and Exchange Commission (SEC) has resulted in a sharp increase in trading volumes on decentralized exchanges (DEX). According to Defi Llama data, DEXs handled trading volumes worth 1.2 billion dollars prior to the SEC’s lawsuit against Binance disclosed on June 4. However, the announcement led to activity on the DEX increasing by 257% to 3.09 billion dollars. The DEX’s total volume remained elevated at 2.77 billion dollars after the Coinbase lawsuit surfaced the following day.
Uniswap V3 and Other DEX Witness Large Increase in Trading Activity
Uniswap V3 emerged as the top DEX with the maximum increase in trading activity. The DEX recorded a decline to 199 million dollars on May 30, which surged to 994 million dollars by June 9, an increase of nearly 500%. Similarly, the volume on Arbitrum’s Uniswap app rose by 500% in the same period, from 77.4 million dollars on May 30 to 387.5 million dollars on June 8. Other DEX platforms also experienced a massive spike in trading volume, including DODO whose trading volume rose from $18.9 million to $182 million, and PancakeSwap V3, which saw its volume spike from $33 million to $236 million.
Curve Witnesses 328% Increase in Trading Volume
Curve, a DEX that specializes in the stablecoin trading, also witnessed a significant increase in its trading volume, climbing by 328%, with the trading activity on USD Coin (USDC) and Tether (USDT) being the significant contributors.
Asset Outflow from Binance and Coinbase
The SEC’s legal action induced a significant outflow of assets from Coinbase and Binance, with crypto holders preferring to transfer their tokens into self-custody wallets or other exchanges. Defi Llama data showed that Binance suffered an outflow of $1.725 billion in value, while the top US crypto exchange, Coinbase, experienced a total outflow of $105.3 million, according to data from Nansen.
Preferring Uniswap and Non-US-Based Exchanges
While many chose self-custody, others transferred their withdrawn assets into decentralized finance, with Uniswap registering a high influx of these assets. Non-US-based exchanges like OKX and ByBit also attracted inflows of $315 million and $100.9 million, respectively, over the past seven days.
