UniSwap Trading Volume Surpasses Coinbase Amid Regulatory Scrutiny

• Uniswap’s spot market volume reached $71.6 billion in March.
• Last month, the SEC sent Coinbase with a Wells notice.

For the second month in a row, Coinbase’s trading volume was lower than that of Uniswap, a decentralized cryptocurrency exchange. Uniswap’s spot market volume reached $71.6 billion in March, 45 percent greater than Coinbase’s. March was the highest volume month on the decentralized exchange since January 2022. Despite Coinbase’s volume increasing from month to month, Uniswap still came out on top. 

In its weekly market analysis, Coinbase said that trading activity had dropped in the last week of March. Coinbase’s spot market volume increased last month to $49.4 billion, or 23%, from over $40 billion in February. According to Coinbase, market trends are reflected on the exchange, with investors focusing on high market cap tokens and stablecoins.

The exchange stated:

“Bitcoin dominance rose even further this week as the recent regulatory headlines with the SEC and CFTC highlighted the uncertainty that still surrounds ether and other altcoins.”

Regulation by Enforcement

In recent weeks, the SEC has made it clear that it believes many crypto tokens may be trading unlawfully as unregistered securities. With the U.S. government threatening regulatory steps against centralized crypto firms in February and March, Uniswap has seen a spike in activity.

Last month, the SEC sent Coinbase with a Wells notice, showing no indications of letting up. The SEC issues a Wells notice to a corporation when it suspects illegal activity, such as the selling of unregistered securities. The company’s Coinbase Earn and Coinbase Wallet staking services were included in the SEC’s notice. Moreover, CFTC files a lawsuit against Binance U.S causing more panic among investors.

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