Crypto & Blockchain News

SEC Crackdown on Binance and Coinbase Boosts DeFi Trading Volume 444%

Over the past 48 hours, trading volume on the leading decentralized exchange (DEX) has experienced an astounding 444% spike, leaving crypto investors grappling with the impact of the recent legal action taken by the United States securities regulator against popular cryptocurrency exchanges Coinbase and Binance. .

According to comprehensive data compiled by CoinGecko, the combined daily trading volume of Uniswap V3 (Ethereum), Uniswap V3 (Arbitrum), and Pancakeswap V3 (BSC) – which collectively account for 53% of total DEX trading volume in the last 24 hours – has surged by a staggering $792 million between June 5 and June 7.

In addition to this spike, trading volume on Curve, the leading DEX facilitating stablecoin trading, saw a significant jump of 328%. Currently, most trading activity on Curve revolves around the US Dollar-pegged stablecoins USD Coin ($1.00) and Tether ($1.00).

During the memecoin frenzy in May, trading volume on DEX briefly surpassed that of Coinbase. As a result, crypto investors are rushing to acquire tokens like Pepe (PEPE) and Turbo (TURBO) via Uniswap and several other decentralized protocols, given that these meme coins are not listed on major centralized exchanges.

As trading volume on DEXs soared, Binance witnessed a staggering net outflow – the difference between the value of assets entering and leaving the exchange – totaling $778 million. However, it is important to note that current net outflows remain substantially lower than total exchange reserves. Currently, Binance has stablecoin balances exceeding $8 billion.

This market madness coincided with a series of legal actions by the Securities and Exchange Commission (SEC) against various crypto exchanges. On June 6, Coinbase was sued by the SEC, which accused the exchange of offering unregistered securities and operating as an unregistered securities broker, among other allegations.

The day before, on June 5, Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ) sued the SEC for the same reasons. The SEC claims that Binance failed to register as a securities exchange, engaging in illegal operations in the United States. Seen as a “controller,” Zhao was named a defendant in the lawsuit against Binance.

This flurry of legal action against crypto exchanges has stirred the markets and sent shockwaves across the cryptocurrency industry, prompting investors and enthusiasts to monitor the evolving landscape closely.

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