84% of trading volume on DEXs occurs through Uniswap, the largest and most used decentralized exchange in the world.
Since its inception, Uniswap has managed a cumulative trading volume of $1 trillion. This is what the developers of this decentralized finance protocol have reported (DeFi) from his Twitter account.
With this new milestone, Uniswap has become the first decentralized exchange protocol to surpass this trading volume within the DeFi ecosystem of the crypto industry.
The main developer of this DEX protocol, Uniswap Labs, indicated that Uniswap's new milestone in terms of accumulated trading volume is possible thanks to the work that the team has been doing over the past three years and that has made Uniswap the main gateway for millions of people to the world of decentralized finance.
According to the data, Uniswap has maintained steady growth, in terms of usage and trading volume, since 2019.
Currently, through this DEX protocol Around 1.070 billion dollars are moved every day, while the weekly trading volume is above $9.140 billion.
In this regard, Hayden Adams, CEO of Uniswap, tweeted that he was surprised by the new milestone reached by his protocol. “I never expected Uniswap to grow the way it has,” Adams said, to highlight the impressive growth and adoption gained by Uniswap in recent years.
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Over 80% of DEX trading volume occurs on Uniswap
According to data from the Dune Analytics platform, 84% of the total trading volume of DEXs is managed on Uniswap.
Uniswap’s dominance as a protocol for decentralized token exchange and automated market making has increased significantly over the past year. By May 2021, Uniswap dominated close to 60% of trading on DEXs.
Source: Dune Analytics
Currently, decentralized exchanges move a trading volume of $78.300 billion per month, with more than 5,23 million active users, many of whom use the Uniswap protocol to conduct their cryptocurrency trading.
Dune Analytics metrics indicate that 74.900 traders trade on Uniswap weekly.
Uniswap V3, more liquidity than many centralized exchanges
Uniswap Labs has revealed that Uniswap V3 market depth has higher liquidity in trading pairs such as ETH/USD and ETH/BTC than several major centralized exchanges in the crypto industry. This means that using Uniswap is more advantageous for users executing high-value transactions than other platforms.
Uniswap's lead developer indicated that the AMM market structure offered by this DeFi protocol, which has become an important part of cryptocurrencies, could exponentially outperform the order book model used by exchanges, to transform the structure of the traditional financial market in order to make it more liquid, stable and secure.
As the gateway to new digital and decentralized finance, Uniswap is unlocking new and existing forms of value for communities and individuals.
However, the way these protocols work and the large volume they manage through their decentralized digital platforms has caught the attention of financial regulators.
In September 2021, the US Securities and Exchange Commission (SEC) opened an investigation against Uniswap Labs, noting that some of its operations may be considered securities under US law. Regulatory risks in DeFi led Uniswap developers to remove 100 cryptocurrencies and trading pairs from their app.uniswap.org interface a few months earlier.
Continue reading: Uniswap Labs limits access to more than 100 tokens over regulatory concerns
