The decline of centralized organizations has benefited their decentralized counterparts. Over the weekend, USDC saw significant trading volume across multiple decentralized exchanges. For example, on March 11, Uniswap reached its highest daily volume of $11.84 billion. However, this is not the only decentralized protocol that has gained popularity.
Uniswap Hits ATH Close to $12B Trading Volume Amid USDC Crisis
This case comes amid the USDC depegging event that took place over the weekend following the collapse of Signature, Silvergate and Silicon Valley Bank. Several centralized crypto exchanges such as Binance, Coinbase, Crypto.com, and Bitpay, have suspended payments and automatic stablecoin conversions. This has led to sharp swings in stablecoin prices and skyrocketing gas fees as investors rush to decentralized institutions to trade USDC for wrapped ether and other tokens.
USDC Wrapped Ethereum (WETH), USDT, and DAI pools managed to raise $15 billion over the week, according to Dune Analytics, before hitting the milestone on Saturday. Due to heavy traffic, Uniswap generated $8.7 million in transaction fees on the same day, a 10-month high.
Popular stablecoin exchange DEX Curve Finance also reached a maximum daily trading volume of around $8 billion while collecting $952,000 in fees. SushiSwap also saw a spike in activity, becoming one of the most used smart contracts by leading Ethereum whales over the same period.
It is very hard to deny that the decentralized finance (DeFi) sector, which relies on smart contracts rather than intermediaries to deliver financial services, has grown significantly in recent years. After last year’s consecutive collapses, trust in centralized institutions is at an all-time low. On the other hand, DeFi has seen some revival as a result.
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