DeFi Trading Volume Pumps 444% Following SEC Crackdown on Coinbase and Binance

Jimmy Aki
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Over the past 48 hours, decentralized exchanges have experienced a substantial increase of almost $800 million in their daily trading volumes. 

This can be attributed to the recent actions taken by the US Securities and Exchange Commission (SEC) against Binance and Coinbase exchanges.

DEX Volumes Surge as Binance and Coinbase Face Crackdown by SEC

Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC), which are the top three decentralized exchanges (DEX), have recorded a total of 444% surge in their average daily trading volume in the past 48 hours. 

This percentage figure was obtained from CoinGecko aggregated data for the top 3 decentralized exchanges. 

The data covering Monday and Wednesday shows a significant increase of over $792 million in the total trading volume on Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC) over the stated period. 

This significant spike in DEX daily trading volume indicates that crypto investors are shocked and confused by the recent legal actions taken by the United States securities regulator (SEC) against Binance and Coinbase exchanges.

On June 5, Binance.US confirmed in a long Twitter post that the Securities and Exchange Commission (SEC) filed civil claims against the firm. 

In the tweet, the company described the SEC lawsuit as “baseless” and said they intend to defend themselves vigorously. 

On the same day, the global Binance Twitter handle also posted a link to an article on their website as the official response to the recent SEC complaint and lawsuit against Binance.US.

Meanwhile, On June 6, Bloomberg posted a report on Twitter that SEC sued Coinbase in a federal court in New York for breaking the US securities rules. 

Later the same day, the co-founder and CEO of Coinbase also posted a long tweet confirming that SEC had filed a complaint against the crypto exchange. 

He stated that the company is “proud” to represent the crypto industry in court to give some clarification on crypto rules.

Brian also mentioned in the Tweet that the SEC allowed Coinbase to go public in 2021 after reviewing their business. 

Binance Records Negative Netflow Amidst SEC Crackdown

Amidst the recent SEC crackdown and lawsuit issue against Binance and Coinbase, a shocking $778.6 million negative Ethereum Netflow has been recorded on the Binance platform in the last 24 hours. 

This data was posted on June 6 on Twitter by Nansen, a blockchain data and research organization. 

According to the post, Binance recorded a net inflow of $871.7 million for Ethereum but a net outflow of $1.65 billion, resulting in a negative net flow of $778.6 million.

In another Twitter post, Nansen claimed that over $3 billion had been withdrawn by Binance users over the past 24 hours across multiple chains since the SEC lawsuit announcement. 

His tweet also stated that the significant withdrawals by Binance users have resulted in a $1.43 billion negative Netflow for multichain tokens. 

While explaining the impact of the SEC crackdown on Binance, Nansen mentioned that the negative netflow simply means that Binance has witnessed more withdrawals than deposits. 

Nansen also stressed that this is not the first time Binance will witness such large withdrawals within 24 hours. 

An example of December 2022 was given when Binance records show a net outflow of over $2 billion when insolvency created panic in the crypto market. 

 

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.