Uniswap, the world’s biggest Decentralized exchange (DEX) with a market capitalization of $4 billion as of the time of this writing, has now processed a total trading volume of $1 trillion since launching on Ethereum in late 2018.
Although this comes from a relatively small user base, it, however, indicates that there is a lot of potential growth to come. According to data from Uniswap Labs, which are major contributors to the development of the protocol and ecosystem, the DEX’s number of cumulative addresses hit around 3.9 million this month after just over three years.
The data was posted via Twitter yesterday, with the Uniswap Labs team stating, “Over the past three years, the Protocol has Onboarded millions of users to the world of DeFi, Introduced fair and permissionless trading, Lowered the barrier to liquidity provision.”
What you should know
- Uniswap is the fifth largest DEX in the cryptocurrency world with a Total Value Locked of $5.92 billion as of the time of this writing. PancakeSwap, a close Binance Chain competitor to Uniswap, ranks seventh with $4.27 billion worth of TVL. MakerDAO represents the largest platform with $9.82 billion in TVL.
- The platform accounts for 8.24% of the TVL on the Ethereum blockchain which stands at $71.82 billion as of the time of this writing.
- It accounts for 26.85% of the total DEX market capitalization, which according to CoinMarketCap, stands at $14.9 billion.
- Uniswap is currently supported on Ethereum and layer-2 scaling solutions Polygon, Optimism and Arbitrum.
- Uniswap Labs also revealed earlier this month that the DEX will be expanding out to two EVM-compatible chains in Gnosis Chain, and Polkadot-based para-chain Moonbeam Network.
- In terms of trade volume, Uniswap ranks well ahead of its competition in the DEX market. Data from CoinGecko shows that Uniswap’s V3 protocol generated $938 million worth of volume over the past 24 hours, representing 33% of the total market share.
- In comparison, Binance Smart Chain-based PancakeSwap (v2) ranks second with $491 million and 17.3% of the market share.
- When comparing Uniswaps’s 24 data with centralized exchanges (CEXs), its $938 million worth of volume places it well behind platforms such as Binance, FTX and Coinbase which generated $12.2 billion, $1.95 billion and $1.79 billion apiece.
- Notably, however, the DEX is well ahead of some big players in the crypto sector such as Crypto.com and Kraken which generated $724.9 million and $597.4 million each.
Despite Uniswap’s ability to attract strong demand and liquidity, it hasn’t done much to sway the price of its native asset UNI in 2022. Since the start of January, UNI has dropped around 67% to sit at $5.59 at the time of writing. UNI’s all-time high of $44.92 was also back in early May 2021 and is down 87.5% since then.