Share this article
Decentralized Exchanges Posted Record $25B Daily Volume as USDC Depegged
The majority of volume took place on Uniswap and Curve as traders hopped out of, and back into, the stablecoin.
Updated May 9, 2023, 4:10 a.m. Published Mar 15, 2023, 10:42 a.m.
Make us preferred on Google
Decentralized crypto exchanges facilitated a record high $25 billion of daily trading volume on Saturday, according to DefiLlama data.
The previous high of $24.3 billion was in May 2021, when bitcoin was worth roughly $65,000 and ether $4,400.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Trading activity surged on a wave of panic as USD coin (USDC), the second-largest stablecoin, lost its peg to the dollar following a short-lived banking crisis in the U.S.
The majority of trades took place on decentralized exchange Uniswap, with weekly volume of $31.7 billion. On the Curve protocol, meanwhile, traders rushed to flee USDC – a move that prompted an unbalancing of the protocol's equally weighted stablecoin liquidity pool.
Circle, the company that issues USDC, calmed concerns by reiterating that every USDC token remained backed by one U.S. dollar, despite having $3 billion in exposure to the troubled Silicon Valley Bank.
Volume across the decentralized finance (DeFi) sector has remained high in the wake of the depegging with a weekly increase of 255%, according to DefiLlama.
Traders' confidence in USDC was demonstrated by a surge in on-chain leveraged positions, with $70 million being at risk of liquidation if the stablecoin was to lose its peg again.
More For You
From Wall Street to Web3: This is crypto’s year of integration, Silicon Valley Bank says
From bank-led stablecoins to tokenized T-bills and AI-powered wallets, digital assets will move from pilot projects to financial plumbing this year.
What to know:
- Silicon Valley Bank's Anthony Vassallo says institutional adoption of crypto is accelerating, pushing bigger venture capital checks, more bank-led custody and lending, and deeper M&A consolidation.
- Stablecoins are emerging as the “internet’s dollar,” fueled by clearer regulation and enterprise demand for payments and settlement.
- Tokenized real-world assets and AI-driven crypto applications are shifting blockchain from speculation to core infrastructure, the bank said.
Top Stories
