Uniswap becomes first DeFi Protocol to hit $2B in Total Value Locked

The DeFi unicorn, Uniswap crosses the total value locked above $2B surpassing dominance of all the other protocols.

By · Sep 27, 2020 . 7min read

Uniswap, an automated market maker (AMM) which allows the trustless trading of digital assets, as well as DeFi’s latest yield farming concept, has grown phenomenally in 2020. Yet, it’s still showing no signs of slowing even though it may have faced its tough moments from other protocols that sought to displace it as the largest and most liquid DEX in the ecosystem. Consolidating on its gains after the recent release of its UNI tokens, Uniswap becomes the first DeFi protocol to hit the $2B USD mark in Total Value Locked.

Data from DeFi Pulse shows Uniswap’s value locked is exactly $2B with 18% dominance above all the other protocols. Among the assets making up Uniswap’s locked-in value are at least 2.4M in ETH and about 185,000 BTC.

Uniswap becomes first DeFi Protocol to hit $2bn in Total Value Locked
Source: DeFi Pulse

The DEX seems to be having a wild run after its TVL dropped sharply after Sushiswap’s liquidity migration. The latter orchestrated a vampire mining attack on the super DEX aiming to drive liquidity away from it. As the chart shows, Uniswap’s Total Value Locked fell sharply on September 4th. This was exactly the moment the Sushiswap’s liquidity migration was happening. Although it appeared as though Sushiswap finally achieved its aim, industry experts like Andre Cronje disagreed, he argued that the DEX liquidity remained the same.

After releasing it’s the UNI token and airdropping to early testers on September 14th, Ethereum miners earned over $1mln USD within a single hour. This was due to the rush by users to claim their UNI and apparently spending gas fees.

2020 is the year of DeFi with DEX volume from Uniswap especially fuelling the growth

No one would have easily predicted the kind of explosion DeFi has seen this year. More significantly, the kind of volume DEX like Uniswap and others have attracted this year is beyond reasoning. For context, we reported on how DEX volume has been increasing by at least 250% since June. While August saw over $11B USD traded through DEXes, September has surpassed that volume by over 100%. According to data from Dune Analytics, over $21.3B USD has passed through DEX for the month of September alone.

Uniswap becomes first DeFi Protocol to hit $2bn in Total Value Locked
Source: Dune Analytics

Of this volume, Uniswap controls at least $13.8B USD which represent 63% dominance within the last 7 days.

Uniswap becomes first DeFi Protocol to hit $2bn in Total Value Locked
Source: Dune Analytics

Uniswap’s unprecedented volume also puts it as the leading DeFi protocol in terms of fees earned. The DEX has earned $42.6 mln USD in fees over the last 30 days at least 4 times that of Balancer which comes in as a distant second.

Uniswap becomes first DeFi Protocol to hit $2bn in Total Value Locked
Data from Token Terminal

Even with Uniswap’s phenomenal growth especially as in its Total Value Locked rising from a mere $450,000 to $2B USD year-to-date, it looks like there’s still more in the offing. Although it has released its governance token, it’s still yet unveiling Uniswap Version 3.

Uniswap’s growth proves that a singular protocol can spark off a domino effect in the whole industry. Hayden, the team, as well as the VC’s who invested in its recently concluded Series A round, must be excited.

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