Uniswap the popular decentralized exchange has reached a milestone. Pocessing more than $100 billion in trading volume in its entire life, becoming the first platform to do so.
The news was shared by Uniswap creator Hayden Adams on Twitter. Who said “@Uniswap just became the first decentralized trading platform to process over $100b in volume – an exciting milestone for DeFi”.
Uniswap allows users to swap ERC20 tokens. These tokens run on the Ethereum blockchain and are extremely popular due to decentralized finance projects. Which are mostly built on Ethereum, attracting more investor attention than ever.
The Uniswap exchange has done an average of $11.1 billion in trading volume every month since launching in May of 2020. Uniswap is the leading decentralized exchange owning a majority of the market share at 54.4%. That number is down from 70.7%, due to the launch of SushiSwap on August 31. Uniswap did also surpass $4 billion in Total Value Locked for the first time.
Uniswap’s Growth in Popularity
With Uniswap’s growth in popularity, its native token UNI has also seen significant growth. Uni is trading above $21 and is up 345% so far this year with a market cap of $6.34 billion. Good enough to be in the top-20 cryptocurrencies.
UNI is a governance token which means whoever holds it has a say in determining how the protocol is run.
The popularity in growth is shown in the number of transactions it is processing. This is due to more projects being built on Ethereum, meaning more ERC20 tokens are being produced.
Many of these projects are in the top-30 cryptocurrencies by market cap. Which means more people will want to deal with them to make money. Uniswap presents the easiest platform to swap them on. There are no background checks or know your customer protocols as with other platforms which all helps Uniswap’s trading volume.