USDC mayhem catalyzes recovery rally in Uniswap and Curve DAO
- Uniswap and Curve DAO, both decentralized crypto exchanges, witnessed a spike in trade volume over the weekend amidst USDC de-peg.
- Traders rushed to exchange Circle’s stablecoin USDC for alternate cryptocurrencies, dominating 55% trade on Uniswap’s DEX.
- UNI and CRV prices have exploded since March 12, yielding double-digit gains for holders.
Circle’s stablecoin USDC’s depeg triggered massive uncertainty in the crypto ecosystem over the weekend. Traders rushed to decentralized exchanges Uniswap and Curve to exchange USDC for other digital assets.
The massive spike in trade volume, contributed to rise in revenue of the exchanges and catalyzed a recovery rally in UNI and CRV prices.
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USDC de-peg pushes Uniswap and Curve’s revenue and trade volume higher
Circle’s stablecoin USDC’s de-peg triggered uncertainty among crypto market participants. It resulted in several traders rushing to decentralized exchanges Uniswap and Curve to exchange the stablecoin for other assets.
Traders exchanging USDC dominated nearly 55% of the trade on Uniswap’s DEX. The exchange’s trade volume hit $12 billion for the first time since its inception, based on data from Dune Analytics.
Colin Wu, a Chinese reporter noted that Silicon Valley Bank’s bankruptcy and USDC transactions led to a substantial increase in lending and other protocol fees.
吴说获悉，因对 SVB 破产波及 USDC 的恐慌，昨日稳定币交易活跃，带动了 DEX、借贷等协议费用大幅增长。据 CryptoFees info 数据，Uniswap 费用超过 870 万美元，是自去年 5 月 12 日以来高点；Curve 费用超过 95 万美元，是自去年 11 月 10 日以来高点；Aave https://t.co/ztTMJJJosl… https://t.co/0KD9phw17p pic.twitter.com/GXiJEelO9E
— 吴说区块链 (@wublockchain12) March 12, 2023
Uniswap DEX revenue
According to data from CryptoFees, trade fees on Uniswap exceeded $8.7 million, the highest level since May 12, 2022. For Curve’s DEX, revenue climbed above $950,000, highest point since the FTX collapse of 2022.
UNI and CRV prices witness recovery rally
Uniswap (UNI) and Curve (CRV) tokens yielded double-digit gains to holders since yesterday. The tumultuous events catalyzed a recovery in the prices of the DEX tokens. UNI price climbed nearly 10%, while CRV yielded 11.5% gains since March 12.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
