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Uniswap has reached two significant milestones this month, with the DEX surpassing $1 trillion in volume and 3.9 million total users.
How Uniswap paved the way
Since its introduction on Ethereum in late 2018, the decentralized exchange (DEX) Uniswap has surpassed $1 trillion in total trading volume.
However, this is based on a limited user base, indicating that there is a lot of room for expansion.
Uniswap Labs also announced earlier this month that the DEX will be expanding to include two Ethereum Virtual Machine (EVM)-compatible chains, Gnosis Chain and Moonbeam Network, as well as a Polkadot-based para-chain.
After little over three years, the DEX’s number of cumulative addresses reached roughly 3.9 million this month, according to statistics from Uniswap Labs, a significant contributor to the protocol’s and ecosystem’s growth.
The Uniswap Labs team noted on Twitter, “Over the past three years, the Protocol has Onboarded millions of individuals to the domain of decentralized finance (DeFi), Introduced fair and anonymous trading, and Lowered the barrier to liquidity provision.”
Layer-2 scaling solutions Polygon, Optimism, and Arbitrum are presently supported by Uniswap.
Uniswap: lows and high
In the DEX market, Uniswap is well ahead of its competitors in terms of the trading volume. According to CoinGecko, Uniswap’s v3 protocol produced $938 million in volume in the last 24 hours, accounting for 33% of the entire market share.
With $491 million and 17.3 percent of the market, Binance Smart Chain-based PancakeSwap (v2) comes in second.
When compared to centralized exchanges (CEXs), Uniswaps’ volume of $938 million ranks it considerably behind platforms like Binance, FTX, and Coinbase, which produced $12.2 billion, $1.95 billion, and $1.79 billion, respectively.
However, the DEX is far ahead of several major cryptocurrency exchanges like Crypto.com and Kraken, which made $724.9 million and $597.4 million, respectively.
According to DefiLlama, Uniswap has $5.93 billion in total value locked (TVL), the fifth-largest amount in the DeFi sector, while PancakeSwap ranks seventh with $4.27 billion in TVL. With $9.82 billion in TVL, MakerDAO is the largest platform.
Uniswap hasn’t done much to influence the price of its native asset Uniswap (UNI) in 2022, despite its capacity to draw high demand and liquidity. UNI has lost roughly 67 percent since the beginning of January and is currently trading at $5.59.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
