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Why did DeFi volume explode on Uniswap to a record high?

More investors are turning to DeFi protocols after the depegging of USDC.

By Finst News
• 3 min read
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Why did DeFi volume explode on Uniswap to a record high?

More investors are turning to DeFi protocols after USDC's depegging. Uniswap posts a record volume.

The unrest around the Silicon Valley Bank events continues to ripple through the crypto industry. The DeFi space is feeling the effects too. Looking at transaction volume, you can conclude they’re positive.

Uniswap, the largest DeFi platform, logged a record volume of $11.8 billion on Saturday (March 11), according to data from Dune Analytics. By comparison, the daily trading volume of the world's largest centralized Bitcoin exchange, Binance, sits at about $18 billion on average. Coinbase, the second-largest, is around $2 billion. So Uniswap outperformed its rival on at least one day.

Binance and other exchanges halt trading: A rise in DeFi users

The rush to exchanges was driven by the disappearance of stablecoins DAI and USDC. USDC, in particular, had a real shot at being the largest USD stablecoin. The drop in USDC stability (the stablecoin sometimes traded around $0.87) was caused by the fallout from the failed Silicon Valley Bank.

During the depegging, centralized exchanges like Binance paused trading in the stablecoins that were in trouble. As a result, many investors turned to decentralized exchanges like Uniswap to sell their USDC positions. Today, USDC remains the most traded coin on Uniswap.

The USDC value has also stabilized. This comes from a rescue operation by the U.S. Treasury and the Fed. The $3.3 billion of USDC reserves Circle had parked at SVB has been safeguarded, relieving the liquidity crunch, they say in a press release.

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