As the collapse of Silicon Valley Bank (SVB) caused FUD in the larger crypto market and depegged the USD Coin [USDC], decentralized exchanges (DEXes) have seen a sharp increase in trading activity over the past 24 hours.
According to DeFiLlama, the overall DEX trading volume increased by more than 100% week over week, reaching a four-month high of $15.12 billion on March 11. At the time of writing, the DEX has a 26.66% market share of the total volume traded on the DEX and centralized exchange (CEX).
In the past, the demise of centralized bodies has benefited DeFi protocols. It was demonstrated in the aftermath of the FTX crash, when users began to favor self-custody over centralized exchanges.
With approximately $8 billion in trade activity over the previous 24 hours, Curve Finance [CRV], a DEX created for stablecoin exchanging, registered its highest daily trading volume.
According to Crypto Fees, a result of the increased trading activity, the platform’s total fees were raised to $952,000, the largest amount in the previous four months.
In a similar vein, Uniswap [UNI], the largest DEX in terms of trading volume, achieved its highest performance in four months after seeing a rise in activity of $3.45 billion over the previous day. At the time of publication, customer transaction fees had reached a 10-month high of $8.75 billion.
SushiSwap [SUSHI], another well-known DEX, too saw a spike in activity and was one of the most used smart contracts by top Ethereum whales in the previous day. The previous three to four years have seen tremendous growth for DEXes. According to a tweet from Token Terminal, the development activity across many projects has multiplied, with developers working on up to 20 different projects as of 10 March. This supports the idea of decentralized finance in the future (DeFi).
The second-largest stablecoin by market cap, USDC, lost its dollar peg on various exchanges because to worries that the reserves backing it were trapped in the defunct Silicon Valley Bank (SVB). According to CoinMarketCap, USDC has risen to $0.95 as of this writing.