As a result of the recent regulatory heat around centralized exchanges (CEXs), trading volume on decentralized exchanges (DEXs) soared by more than 167% in the past four months. According to DefiLlama, market volume on DEXs surged from $49.1 billion in December 2022 to $131.2 billion in March 2023.

Uniswap Market Volume Beats Coinbase for the Second Month

Trading volume on DEXs hit $131.2 billion in March 2023, marking a 167% increase from $49.1 billion in December 2022, according to data from decentralized finance (DeFi) TVL aggregator DefiLlama. On an annual basis, volume in March 2023 was slightly down from the year-ago volume of $136.4 billion.

As a result of this trend, the spot market volume on Uniswap DEX exceeded the volume on Coinbase, one of the largest CEXs in the world. Uniwap volume surged to $71.6 billion in March, 45% higher than $49.4 billion on Coinbase.

This is the second consecutive month Uniswap spot market volume outstripped that of Coinbase, despite a month-on-month increase on the centralized exchange. Coinbase said the recent trends on the exchange reflect the broader market sentiment as investors shift away from altcoins toward large-cap tokens and stablecoins.

“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,” the exchange explained.

– Coinbase said in its weekly market commentary last week.

Crypto Remains in Regulator Crosshairs

The rising volume on DEXs like Uniswap comes after a recent regulatory clampdown on CEXs in the US. Last month, the US Securities and Exchange Commission (SEC) delivered a Wells notice to Coinbase, suggesting that the securities regulator is considering a potential law enforcement action against the crypto exchange.

According to the notice, SEC targets Coinbase’s spot market, including its Prime, Earn, and Wallet services. Coinbase CEO Brian Armstrong said the notice focused on staking and asset listings. The document was delivered to Coinbase after 30 meetings between the exchange and US regulators in the past nine months, said its Chief Legal Officer.

SEC’s action against Coinbase represents part of the broader scrutiny of CEXs in the US after a series of collapses last year highlighted industry risks. Earlier this year, the SEC forced crypto exchange Kraken to shut down its staking service and pay a $30 million penalty for allegedly breaking US securities laws.

This article originally appeared on The Tokenist