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The average trading volume on the top three decentralized exchanges (DEXs) jumped 444% in the last 48 hours as crypto investors were shaken by the US securities regulator’s recent lawsuits against crypto exchanges Coinbase and Binance.
Total daily trading volume on Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum), and Pancakeswap V3 (BSC), which account for 53% of total DEX trading volume in the last 24 hours, increased by more than $792 million, according to CoinGecko’s summary data. during the period from 5 to 7 June.
In addition, trading volume on Curve, the DEX that allows stablecoins to be traded, is up 328%. At the time of writing, the bulk of trading activity on Curve is focused on USD-pegged stablecoins USD Coin (USDC) and Tether (USDT).
Trading volumes on the DEX briefly surpassed those of Coinbase during the May Memcoin frenzy. Cryptocurrency investors rushed to acquire tokens such as Pepe (PEPE) and Turbo (TURBO) through Uniswap and a number of other decentralized protocols as Memcoins were not listed on major centralized exchanges.
Related: SEC Files Restraining Order Petition Against Binance
As DEX volumes have grown, the net churn — the difference between the value of assets entering and leaving the exchange — on Binance has reached a staggering $778 million. It is worth noting that the current net outflows are still well below the exchange’s total reserve. At the time of writing, Binance maintains a stablecoin balance of over $8 billion.
Netflow to Binance over the past 24 hours is $778.6M negative on Ethereum – $871.7M in and $1.65B out
Over the past hour, netflow on Ethereum continues to be negative at $35.7M on Ethereum – $14.8M in and $50.5M out
Track it here https://t.co/nwTgpXWhZY and filter for “Binance” pic.twitter.com/jnNAN0QKVy
— Nansen (@nansen_ai) June 6, 2023
The market frenzy comes amid a series of lawsuits against cryptocurrency 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 allegations.
A day earlier, on June 5, the SEC sued Binance, Binance. US and Binance CEO Changpeng Zhao (CZ) on similar charges. The Securities and Exchange Commission said that Binance was unable to register as a securities exchange and therefore operated illegally in the US. According to the charges, Zhao was sued as a “controlling person”.