Victor Ugochukwu · Dec 1, 2020 . 8min read
A look at Uniswap as it clocks two years
Uniswap, the DEX unicorn has had a rollercoaster ride right from $17K to $6.1 billion trading volume in a span of two years.
By Victor Ugochukwu · Nov 4, 2020 . 6min read
It’s two years since Hayden Adams officially launched Uniswap since then it has been an incredible journey for the DEX beast which saw just a little around $17K in the first week. And in 24 months since its creation, Uniswap commandeered over $4 billion just last week.
DEX trading has been around for some time as an alternative to the centralized exchange like Binance, Coinbase etc. However, centralized exchanges come the risk of censorship as well as a target for hackers. Replete stories abound of how hackers breached the security of these big exchanges to steal user funds. Meanwhile, besides the target point for hackers, DEX allows for composability with other DeFi protocols.
Irrespective of the horrific stories of hacks of centralized exchanges, they still offered massive liquidity for traders. On top of that, they offered intuitive user interfaces. DEXes were found wanton in these two qualities bigger exchanges possess until Uniswap. The DEX would come to turn everything right in on its head.
Uniswap, with a shapeshift-like interface, made it easy for traders to swap between their assets. All they have to do is use liquidity pools and not the conventional order book matching.
Single-handedly fuelling the DeFi bull run of 2020, Uniswap saw high user activity month over month. For instance, even though last week saw a total DEX trading volume at $4.1 billion, Uniswap’s largest trade volume happened by the end of August. The DEX beast recorded over $6.1 billion in trade volume by August 31st.
Uniswap upon clocking two years of creation, beats other DeFi protocols in TVL.
Total Value Locked – TVL is unarguably one of the most popular key metrics for rating DeFi protocols, and Uniswap as a DEX doesn’t fall short. It’s on record that Uniswap is the first DeFi protocol to reach $3 billion TVL.
Much of these traction in Uniswap in terms of trade volume and TVL is fuelled by tremendous user activity on the protocol. Quite clearly, Uniswap has 40 times more users than the next closest DEX. While at least 97,852 DEX users traded on Uniswap in the last week, SushiSwap which comes a distant second among the DEXes had 2,374.
Although Uniswap is two years old, SushiSwap’s aggressive attempt to drive liquidity from the DEX beast didn’t turn out quite well for the contender. Instead, Uniswap grew stronger, thereby launching its UNI token which saw it airdropping 150 million to its DEX users.
On the overall, DEX users have executed over 30,092,125 trades on the DEXprotocols with Uniswap enjoying the largest share. Uniswap continues to “DeFi” every odds to solidify its strength while paving the way for more innovation in the DEX sector.
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Komal Joshi · Nov 30, 2020 . 5min read