The Ethereum-based DeFi platform sees a massive 900% surge in trading volume after regulators targeted BUSD
Trading volume on decentralized finance platform Curve Finance (CRV) is trending parabolic after it was announced that Paxos will stop issuing Binance USD (BUSD).
Curve Finance is a decentralized exchange (DEX) focused on stablecoins and has some of the largest liquidity pools available in DeFi.
Curve Finance’s volume surged to the third-highest level in its entire history earlier this week, according to blockchain tracker DefiLlama.
“CurveFinance recorded a trading volume of $1.07 billion in the last 24 hours, setting a new high for the year. Only two other days in its history has there been higher volume, and both occurred immediately after FTX collapsed.”
Source: DefiLlama/Twitter
CurveFinance’s Twitter page also acknowledged the explosion of activity, saying that “good drama breeds good trading volume.”
Source: Curve.Finance/Twitter
Just before the platform’s trading volume skyrocketed, the New York Department of Treasury (NYDFS) ordered Paxos, which issues and operates BUSD in partnership with Binance, ordered the firm to freeze production.
Activity on Curve Finance appears to be related to traders moving capital to various stablecoin pools due to the uncertainty around BUSD.
Curve Finance is also working on its own USD-pegged stablecoin called crvUSD, which had a whitepaper released late last year but no release date was given.
Curve Finance’s governance token CRV also turned green over the last day and is currently up 6% over the past 24 hours as it trades at $1.07.
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