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The decentralized exchange (DEX) Uniswap reached its second big milestone in less than a month, crossing the $1 trillion mark in trade volume. Another key milestone was reached earlier this month when the DEX reached 3.9 million total users.

The increase in trading volume is considered a confirmation that Uniswap remains one of the leading protocols in the Decentralized Finance (DeFi) industry.

Significant expansion potential

Uniswap has surpassed $1 trillion in trading volume in only three years since its start. This statistic is based on a limited user base, indicating substantial room for expansion. According to Uniswap Labs, the decentralized exchange reached 3.9 million total addresses in only three years. Uniswap Labs has substantially contributed to the protocol’s development and ecosystem.

Increasing public support

Uniswap is now supported on Ethereum and various other layer-2 scaling solutions such as Optimism, Arbitrum, and Polygon. Uniswap also announced that the decentralized exchange would be extended to other EMV-compatible chains, including the Gnosis Chain and Moonbeam, a Polkadot-based parachain.

Getting ahead of the competition

Uniswap has risen to the top of the DEX marketplaces, far ahead of its competitors when it comes to trading volumes. Uniswap’s V3 protocol, according to CoinGecko, has produced over $932 million in volume in the last 24 hours. This statistic equates to a whopping 33 percent market share. This puts the second-placed PancakeSwap x2, which earned $491 million in trade volume.

However, compared to larger, centralized exchanges, the figure pales in contrast. Its daily turnover of $938 million ranks it well behind Binance ($12.2 billion), FTX (1.95 billion), and Coinbase ($1.79 billion). However, the DEX has surpassed some of the more famous participants in the crypto market, like Crypto.com and Kraken.

In addition, Uniswap has almost $6 billion in total value locked (TVL) across Polygon, Ethereum, Optimism, and Arbitrum. This is much more than Sushiswap and Balancer ($2.1 billion), Bancor ($631 million), and 1inch ($10 million). Curve lending methods are the only ones with greater TVL (9.1 billion),

Market capitalization is still declining

Uniswap’s market value has been declining for over a year, despite the good figures. Uniswap’s fully diluted market cap was $33.3 billion in May 2021, and the UNI token was valued at about $42. The market cap has plunged to $5.3 billion today, and the UNI token has dropped to about $5.50.

According to many accounts, this isn’t limited to Uniswap; the whole DeFi industry has been in a bear market since 2021, with numerous prominent protocols losing considerable value.

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