The SEC’s strict regulatory actions against centralized exchanges (CEXs), Binance, and Coinbase push investors to decentralized exchanges.
Trading volumes for the top three DeFi exchanges have hit almost $800 million in the past 48 hours, indicating a surge of 444%.
Massive Surge In DeFi Trading Volumes
The recent SEC crackdown on centralized exchanges has pushed crypto investors into decentralized exchanges (DEXs), creating a massive spike in their total trading volumes.
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According to data from CoinGecko, the total trading volumes on PancakeSwap v3 (BSC), Uniswap v3 (Ethereum), and Uniswap v3 (Arbitrum) surged by over $792 million between June 5 and June 7. The three DEXs constitute about 53% of the total DEX trading volume over the past 24 hours.
During the meme coins’ explosive rush in May, the decentralized exchanges’ trading volumes slightly exceeded Coinbase’s. Tokens like Pepe (PEPE), Turbo (TURBO), and others witnessed massive investment attention as crypto investors accumulated the coins.
Moreover, most of the investments occurred in decentralized platforms such as Uniswap since major CEXs do not list meme coins. Further, Curve, a DEX for trading stablecoins, got a share of the bullish trend as its trading volume surged by 328%.
The major trading activity on Curve currently concentrates on the leading US dollar-pegged stablecoins Tether (USDT) and USD Coin (USDC).
The increase in DEX trading volumes has also affected the net outflow on the CEXs. Binance recorded a net outflow of $778 million. However, Binance’s net outflow is still very low compared to its total reserve, as the exchange maintains over $8 billion in its stablecoin balance.
SEC Sued Binance And Coinbase
While the Ripple case continues, the US Securities and Exchange Commission (SEC) recently resumed its crackdown on crypto firms such as Coinbase and Binance.
It has filed lawsuits against Coinbase and Binance, the top two crypto exchanges in the world, creating more tension within the crypto space.
On June 5, the SEC sued the world’s largest crypto exchange Binance, the US subsidiary, Binance.US, and Binance CEO Changpeng Zhao.
The regulator alleged the crypto exchange violated securities laws and filed a 136-page complaint against the crypto exchange.
The SEC accused Binance of trading on some crypto assets, which are securities. It stated that Binance’s operation in the US is illegal since the firm is not registered as a securities exchange in the country.
Further, the regulator alleged that Binance allows US customers to trade on its international platform instead of the US subsidiary platform.
Additionally, the SEC filed a lawsuit against the biggest crypto exchange in the US on June 6, Coinbase. Some of the charges on the exchange include trading unregistered securities and operating as a securities broker without registration.
Featured image from Pixabay and chart from TradingView.com