Most cryptocurrency enthusiasts are now familiar with decentralized exchanges. Primarily Uniswap continues to generate a lot of daily trading volume. The platform has generated over $50 billion since its inception.
DEXes Are Crucial to Crypto Trading
When it comes to decentralized exchanges – or DEXes – there is only one household name. Uniswap continues to dominate this landscape as it is miles ahead of competing platforms for the trading volume. Looking at the overall DEX volume, Uniswap always represents 60% or more of the weekly trades. That situation may not change shortly, either.
Unlike other DEXes, Uniswap exists in multiple iterations. Although no one needs to trade on V1, it is still home to plenty of liquidity. Most traders are accustomed to V2, which continues to grow and expand every week. Providing liquidity on this platform can help users earn a passive revenue stream to boot.
Many people will argue that DEXes can’t hold a candle to centralized exchanges for the trading volume. That is undoubtedly true, but it doesn’t make decentralized projects less valuable to the community at large. Not everyone wants to go through a KYC process to perform one or two trades. What Uniswap and similar platforms offer has a lot of value to the right type of trader.
More importantly, DEXes continue to note an increase in the overall trading volume. Although there is just 6% in growth over the past 30 days, the overall momentum remains intact. It may be a matter of time until all DEXes combine for over $20 billion in 30-day volume.
Uniswap Surpasses $50 Billion Already
A statistic shared on Twitter recently confirms just how dominant Uniswap is. Since its inception, the platform has generated over $51 billion in trading volume—a significant milestone for this project. One has to keep in mind that many people ignored the first iteration of this project for a long time. Trading between Ethereum and ERC20 tokens doesn’t necessarily require a DEX.
Furthermore, Uniswap is currently home to over 1,400 coins and 2,500 trading pairs. It is a very intriguing platform in that regard. Traders can exchange any token against any other asset, as long as there is market liquidity. Any user can provide that liquidity, and they will earn a share of the trading fees for doing so. It is a solid business model that continues to work well, even today.
Uniswap’s top pairs are USDT/ETH and USDC/ETH in terms of the daily trading volume. There is also DAI/ETH, further confirming how popular stablecoins are within the cryptocurrency space. Other than those currencies, traders often explore different DeFi tokens, including Wrapped Bitcoin.