CDS Crypto News Trade Volumes on the Decentralized Exchange (DEX) Increased by About 250%
Crypto News

Trade Volumes on the Decentralized Exchange (DEX) Increased by About 250%

437
Trade Volumes on the Decentralized Exchange (DEX) Increased by About 250%

During the stablecoin crisis earlier this week, when the value of USDC, the second-largest stablecoin by market capitalization, fell to a low of $0.87 before recovering, decentralized exchanges (DEXs) saw an enormous increase in trading volume.

Trade Volumes on the Decentralized Exchange (DEX) Increased by About 250%

USDC thus hit an all-time low. This was largely due to the fact that $3.3 billion, about 8% of Circle’s total reserves, were in the shuttered Silicon Valley Bank. On the other hand, the second-largest failure of a major US bank in history, Silicon Valley Bank (SVB), was shut down by US regulators last week as a result of a panic-instigated bank run.

SVB was a well-liked option among individuals in the digital asset sector since it had close ties to the venture capital market and was recognized for being welcoming to cryptocurrencies. Circle and its stablecoin, USDC, came under a lot of strain as a result of SVB’s abrupt collapse.

The FDIC stepped in to solve the problem. With the regulatory agency stepping in, the institution stated that it would reimburse depositors. On the other hand, we can say that before the FDIC stepped in, there was an active atmosphere for the funds in the stock market.

About DEX Volumes

Coinbase, a participant in the ENTRE Consortium, the driving force behind USDC, announced the suspension of redemptions into USD over the weekend, which exacerbated the problem. Several traders likely turned to decentralized exchanges to look for additional options after the announcement.

The volume of DEX transactions grew by 249% on March 11, from $7.14 billion to $25.0 billion. Moreover, Ethereum’s gas costs, which measure network activity, reached their highest point in 2023, peaking at 101 Gwei.

References

www.cryptoglobe.com

Written by
lectertodd

Lectertodd is 25 years old. She graduated from Çankaya University, Department of Psychology, in 2021. She actively works as a writer, translator, and editor for various websites. Moreover, she loves reading, researching, and learning new things.

Leave a comment

Leave a Reply

Related Articles

In the first quarter, losses from crypto hacks and scams amounted to a staggering 336 million Dollars

In the first quarter, the crypto industry faced losses amounting to $336...

FTX Fraud Suspect SBF to Be Sentenced Today

FTX fraud suspect SBF appeared before the judge today.

Marc Andreessen Teams Up with Galaxy Digital and Accolade for 75 Million Dollars Crypto Fund

The fund was unveiled amidst a surge in institutional enthusiasm for cryptocurrency...