The collapse of the Silicon Valley Bank (SVB) last week and subsequent contagion seems to have worked in favor of the decentralized exchanges as trading activity on them soared to levels not seen since November 2022.
According to the latest data from “DeFiLlama”, the daily trading volume on decentralized exchanges increased by a staggering 255.36% over the past week and is slowly approaching $60 billion, a level last seen four months ago.
The number reached nearly $25 billion on March 11 as investors scrambled to move their cryptocurrencies towards these platforms.
All major decentralized exchanges were benefiting from the situation with increases of more than 100% being noted.
Clearly, Uniswap is the largest decentralized exchange, generating a trading volume of $31.69 billion over the past week.
The figure reached an all-time high of nearly $12 billion in daily trading volume on March 11.
The large trading volumes also indicated that the Liquidity Providers (LPs) on Uniswap enjoyed a large payout.
Curve also posted a strong weekly gain of 1075% with a trading volume of over $15 billion over the same period.
It was followed by PancakeSwap with a weekly trading volume of $2.17 billion and a gain of 65.77%.
In just a two-week period, the month of March saw heavy trading activity in these decentralized exchanges, with volume already reaching $76.71 billion.
By contrast, volume for the whole month of February was about $86 billion, followed by $70 billion in January and less than $50 billion last December.
With confidence in centralized exchanges waning, more investors are eager to jump into the DeFi system to execute trades.
