In recent days, we have seen an explosion in trading volume on the three largest decentralized exchanges (DEXs). According to figures provided by the CoinGecko website, activity on these platforms has skyrocketed by more than 400% in the last 48 hours.
This increase may be linked to the moment of turbulence experienced by two giants in the sector: Binance and Coinbase. Both were sued by the US Securities and Exchange Commission (SEC) over allegations of unregulated transactions.
These SEC actions seem to have triggered an earthquake in the crypto ecosystem, triggering a massive investor migration to DeFi platforms such as Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum) and PancakeSwap v3 (BSC). These even represented more than 50% of the total DEX trading volume in the last 24 hours, with an increase of more than US$ 800 million between the 5th and 7th of June.
DEX Curve, known for stablecoin trading, saw its volume increase by a hefty 328%. And here, investor preference leans towards stablecoins pegged to the US dollar, such as USD Coin and Tether.
However, net outflows (the difference between the value of assets entering and leaving the exchange) on Binance reached the staggering figure of $778 million. But, Binance's stablecoin balance is still at over $8 billion.
Finally, it is important to highlight that the SEC actions against Coinbase and Binance took place on June 6th and 5th respectively. And now, with the dust settling, the DeFi market appears to be reaping the rewards of this turnaround.
