Decentralized exchanges have been seeing a lot of traffic recently as more people are getting interested in DeFi.
Major decentralized exchange Uniswap recently reached a record high of $100 Billion in cumulative trading volume, signaling a new shift in trading volume for DEX.
Major Signals
- CEO, Hayden Adams tweeted that Uniswap had just surpassed the $100 billion Total trading volume milestone.
- According to Dune Analytics, The total trading as of Monday was $101.5 billion.
- The DEX processed over $1.2 billion worth of transactions within 24 hours.
- This January alone, DEX registered over $55 billion in trading volumes.
Uniswap has seen an astonishing rate of growth in the past few years. Built on Ethereum's network, it is an entirely decentralized protocol that utilizes Ethereum's network for automated liquidity provision. It allows the exchange of tokens for anybody with an ERC-20 token (Ethereum token wallet) without the involvement of any major party.
Users are authorized to trade without go-betweens, with a high degree of decentralization and censorship-resistance. Founded by Hayden Adams in 2018, its governance token is UNI.
On Monday, February, the CEO Hayden Adams announced via a tweet that the platform had become the first decentralized exchange to process over $100 billion in transactions.
According to CoinGecko, the decentralized exchange had processed over $1.2 billion worth of transactions within 24 hours. They became the very first decentralized exchange (DEX) to reach this incredible milestone.
Just in January of this year alone, decentralized exchanges registered over $55 billion in trading volumes. Particularly, Uniswap was responsible for almost 50% of this record-breaking figure. This fast growth in volume is due to the rapid uptake of DeFi governance tokens, even threatening centralized exchanges. It's trading volume often surpasses that of Coinbase.
Amidst all of this incredible growth there are also some issues that currently facing the uniswap community. One of this is the high price of gas on the ethereum network, because this platform is based on Ethereum's network which for a while now has been suffering steep gas prices. Transaction fees on the uniswap have been affected. The skyrocketing transaction fees have discouraged users from the transactions on the exchange.
In rating exchanges according to the total value locked, it currently ranks fifth followed by sushiswap.
As the DeFi space grows, we look forward to witnessing more incredible growth from Uniswap.
