Uniswap surpasses Coinbase in trade volume and has its finest month since 2022

By: Michael Wilson

Uniswap surpasses Coinbase in trade volume and has its finest month since 2022

April 4, 2023 7:06 AM

Since recent regulatory barriers around centralized exchanges infused fresh liquidity into DEXs, Uniswap's market volume outpaced Coinbase for the second consecutive month.

According to DefiLlama, trade volume on decentralized exchanges reached $131.2 billion in March 2023, a 167% rise from $49.1 billion in December 2022. DEXs outperformed CEXs in aggregate volume over the last 24 hours by 4.4%.

In keeping with this trend, Uniswap DEX volume surpassed Coinbase, one of the largest centralized crypto exchanges, reaching $71.6 billion in March, 45% more than Coinbase's $49.4 billion, according to statistics from The Block Research.


DEX volume screenshot Source: defillama.com


According to Coinbase, its spot volume indicates market participants' concerns about the regulatory status of non-bitcoin cryptocurrencies, as investors gravitate away from altcoins and into large-cap tokens and stablecoins.

"Volumes on Exchange have returned to normal levels compared to the previous week," the exchange said in its weekly report on March 31. Recent regulatory developments involving the SEC and CFTC have underlined the uncertainty that still surrounds ETH and other altcoins, contributing to BTC's continued rise in market dominance this week."

The growth in trading volume on Uniswap coincides with rising regulatory pressure on centralized exchanges. The US Securities and Exchange Commission issued a Wells notice to Coinbase last month, alleging that the exchange violated securities laws by marketing its staking products to US consumers.

The CFTC filed a billion-dollar complaint against Binance and its CEO Changpeng "CZ" Zhao last week, alleging that the largest crypto exchange had secret in-house trading accounts, illegally solicited US customers, and circumvented compliance procedures. Since 2017, the agency has sought to enforce disgorgement of salaries, fees, trading profits, and other advantages or revenues earned from US clients.