DeFi Protocol Volumes Reach Record Highs Due to USDC Depeg

On the weekend of March 11, the cryptocurrency community experienced a wave of panic as the stablecoin USDC suffered a heavy depeg due to the impact of Silicon Valley Bank and associated risks in other areas. Users fled from crypto assets to safer assets, leading to a surge in on-chain activity and contributing to the record trading volumes seen on many DeFi platforms.

The leading DEX in the market, Uniswap, recorded the highest daily trading volume in its history, reaching $11.84 billion. This figure is almost double the previous record of $6.67 billion.

Curve also saw its daily trading volume reach a peak of $8 billion. The project’s Twitter account congratulated this milestone.

March 11 was also a day of peak activity on DEX platforms, with a significant increase in total trading volume, as shown in the visual chart below:

Daily Trading Volume on DEX Surges on March 11th | Source: Dune Analytics

This growth in volume directly reflects on the revenue of the platforms. Since most DEX platforms make money based on user transaction fees, a surge in volume means an increase in revenue from fees.

On March 11, Ethereum’s daily revenue reached a peak of $13.4 million, more than twice the previous day’s revenue of $4.7 million. However, on-chain asset movements do not always go smoothly. As reported by AZCoin News, an investor swapped 2 million USDC but only received 0.05 USDT due to a stuck MEV transaction. KyberSwap explained the issue and sought ways to fix it.

During the period of USDC depegging, Lookonchain reported that a large investor, commonly referred to as a whale, purchased 17.05 million USDC by using 16 million USDT. The investor then went on to repay their USDC debt on Aave. This move proved to be lucrative as the investor made over $1.05 million in profits.

The depeg of USDC has caused concern among investors, and many have started to move their assets to safer places. However, this has resulted in record trading volumes on DeFi platforms, leading to increased revenue for these platforms. This situation highlights the interconnected nature of the cryptocurrency market and the importance of monitoring risks and associated effects.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like