Decentralized Exchanges Come as Winners Amidst USDC Depegging
Last week’s collapse of Silicon Valley Bank (SVB) and the subsequent contagion appeared to have worked in favor of the decentralized exchanges as trading activity soared to levels not seen since November 2022.
According to the latest data from DeFiLlama, the daily trading volume on decentralized exchanges was up by an astonishing 255.36% over the past week and is inching closer to $60 billion, a level last seen four months ago. The figure reached almost $25 billion on March 11th as a result of investors scrambling to move money.
All the top decentralized exchanges were in the green, with the majority noting increases upwards of 100%.
Uniswap is clearly the largest decentralized exchange, as per the leaderboard, raking in a trading volume of $31.69 billion over the past week. It reached the highest daily volume ever of nearly $12 billion on March 11th.
High volumes also signaled that the liquidity providers (LPs) on Uniswap are enjoying a sizeable payout.
Curve was yet another platform that recorded an impressive 1075% weekly gains with a trading volume of over $15 billion during the same period.
PancakeSwap followed suit with a $2.17 billion weekly trading volume and was up by 65.77%.
In a period of two weeks only, March has seen intense trading activity in these decentralized exchanges, as the volume has already reached $76.71 billion.
Contrastingly, the volume for the whole of February was around $86 billion, followed by $70 billion in January and less than $50 billion in December.
With faith in centralized entities at an all-time low, more investors are eager to hop onto the DeFi ecosystem to execute trades.