The Silicon Valley Bank (SVB) collapse last week and the subsequent contagion seemed to have worked in favor of decentralized exchanges, as trading activity soared to levels not seen since November 2022.
According to the latest data from DeFiLlama, daily trading volume on decentralized exchanges increased a staggering 255.36% over the past week and is inching ever closer to $60 billion, a level last seen four months ago. The figure reached nearly $25 billion on March 11 as a result of investors scrambling to move money.
- All the major decentralized exchanges were in the green, with most noting increases of over 100%.
- Uniswap is clearly the largest decentralized exchange, according to the classification, accumulating a trading volume of $31.69 billion over the past week. It reached the highest daily volume of almost $12 billion on March 11.
- The high volumes also indicated that liquidity providers (LPs) on Uniswap are enjoying a sizeable payout.
- Curve was another platform that posted impressive weekly gains of 1075% with a transaction volume of over $15 billion during the same period.
- PancakeSwap followed suit with weekly trading volume of $2.17 billion and up 65.77%.
- In a period of just two weeks, March has seen intense trading activity on these decentralized exchanges as volume has already hit $76.71 billion.
- By contrast, volume for all of February was around $86 billion, followed by $70 billion in January and less than $50 billion in December.
- With faith in centralized entities at an all time low, more investors are eager to jump into the DeFi ecosystem to execute trades.
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