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DeFi volume on Uniswap hits record highs

Investors flock to DeFi protocols in the wake of the USDC depeg.

By Mike Hesp
• 4 min read
DeFi volume on Uniswap hits record highs

Investors flock to DeFi protocols in the wake of USDC depeg. Uniswap sees record volume.

The unrest around Silicon Valley Bank continues to ripple through the crypto space. There are also implications for the DeFi sector. Looking at the transaction volume, it must be said: it’s positive.

The largest DeFi platform Uniswap saw a record daily volume of $11.8 billion on Saturday, March 11, according to data from Dune Analytics. For reference, the daily trading volume of the world’s largest centralized exchange Binance is about $18 billion.

Exchange users flee to DeFi

The reason for the mass run to decentralized exchanges was the depegging of stablecoins like DAI and USDC. The latter was seen as a strong contender for the title of the largest USD stablecoin by market cap. USDC’s stability loss was due to Circle’s exposure to the failed Silicon Valley Bank.

During the depeg, centralized exchanges like Binance halted trading in the struggling stablecoins. As a result, some investors sought refuge on decentralized exchanges like Uniswap to unwind USDC positions.

USDC values have since stabilized. This comes after the rescue of Silicon Valley Bank by the U.S. Treasury and the Fed. The $3.3 billion of USDC parked with SVB has been rescued and the liquidity shortfall bridged. This is outlined in a Circle press release.

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