Over the course of the past 48 hours, trading volumes on decentralized exchanges have witnessed an impressive surge, with an increase of nearly $800 million.

As a result of recent legal actions taken by the United States securities regulator against Coinbase and Binance, cryptocurrency investors experienced a significant impact. Within a span of 48 hours, the median trading volume across the top three decentralized exchanges (DEX) witnessed a remarkable surge of 444%.

Between June 5 and June 7, there was a substantial increase in total daily trading volumes on Uniswap v3 (Ethereum), Uniswap v3 (Arbitrum), and PancakeSwap v3 (BSC), as per aggregated data from CoinGecko. These three platforms alone make up 53% of the total trading volume in the decentralized exchange (DEX) space over the past 24 hours. The combined trading volumes across these platforms surged by over $792 million during this period.

Moreover, the trading volume on Curve, a DEX facilitating stablecoin transactions, experienced a significant increase of 328%. As of the current moment, the majority of trading activity on Curve revolves around the trading of USD Coin and Tether, both of which are stablecoins pegged to the U.S. dollar.

During the memecoin frenzy in May, trading volumes on decentralized exchanges (DEXs) briefly surpassed those of Coinbase. Crypto investors eagerly flocked to platforms like Uniswap and various decentralized protocols to acquire tokens such as Pepe (PEPE) and Turbo (TURBO), as these memecoins were not listed on major centralized exchanges. This surge in activity on DEXs showcased the growing popularity and demand for decentralized trading options during the memecoin craze.

With the surge in decentralized exchange (DEX) volumes, Binance experienced a significant net outflow of funds, amounting to an impressive $778 million. However, it is important to highlight that despite these outflows, the current net outflow remains relatively lower compared to the total reserve held by the exchange. As of the time of writing, Binance still maintains a substantial stablecoin balance exceeding $8 billion.

The current market frenzy coincides with a wave of legal actions taken by the Securities and Exchange Commission (SEC) against cryptocurrency exchanges. On June 6, Coinbase was sued by the SEC, with allegations ranging from offering unregistered securities to acting as an unregistered securities broker, among other charges.

The day prior, on June 5, Binance, Binance.US, and Binance CEO Changpeng Zhao (CZ) were sued by the SEC, with parallel allegations. The SEC claimed that Binance did not register as a securities exchange, thus engaging in unlawful operations within the United States. Additionally, the charges included suing Zhao as a "controlling person."