SEC crackdown on Binance and Coinbase surge DeFi trading volumes 444%
The average trading volume throughout the leading three decentralized exchanges (DEX) jumped 444% in the past 48 hours as crypto financiers reeled from the United States securities regulators recent legal actions against cryptocurrency exchanges Coinbase and Binance.According to aggregated data from CoinGecko, total daily trading volumes on 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– increased by more than $792 million between June 5 and June 7. Trading volume on Uniswap V3 (Ethereum) in the last 7 days. Source: CoinGecko.Additionally, the trading volume on Curve, a DEX that permits the trading of stablecoins increased by 328%. At the time of writing the bulk of the trading activity on Curve is concentrated on trading the U.S. Dollar-pegged stablecoins USD Coin (USDC) and Tether (USDT). Trading volumes on DEXs quickly went beyond those of Coinbase throughout Mays memecoin frenzy. Crypto financiers rushed to acquire tokens such as Pepe (PEPE) and Turbo (TURBO) through Uniswap and a number of other decentralized procedures as the memecoins were not noted on major centralized exchanges.Related: SEC submits movement for restraining order versus BinanceAs DEX volumes rose, net outflows– the distinction between the worth of possessions leaving the exchange and going into– on Binance reached a shocking $778M. Its worth noting that current net outflows are still much lower than the exchanges total reserve. At the time of writing Binance preserved a stablecoin balance of more than $8 billion.Netflow to Binance over the previous 24 hours is $778.6 M unfavorable on Ethereum – $871.7 M in and $1.65 B outOver the previous hour, netflow on Ethereum continues to be negative at $35.7 M on Ethereum – $14.8 M in and $50.5 M outTrack it here https://t.co/nwTgpXWhZY and filter for “Binance” pic.twitter.com/jnNAN0QKVy— Nansen (@nansen_ai) June 6, 2023
The market frenzy comes in the middle of a swathe of legal action against crypto exchanges by the Securities and Exchange Commission (SEC). On June 6, the SEC sued Coinbase declaring it acted and provided unregistered securities as an unregistered securities broker amongst other charges.A day earlier on June 5, the SEC took legal action against Binance, Binance.US and Binance CEO Changpeng Zhao (CZ) under comparable allegations.