Bitcoin : The DeFi frenzy propels Uniswap into the top 3 exchanges

Third exchange in the world?

The Uniswap decentralized exchange (DEX) had a turbulent start to the week. This agitation is fueled by the frenzy around decentralized finance (DeFi) and by the appearance of its SushiSwap clone (SUSHI).

According to data from CoinGecko, Uniswap reached a trading volume of $ 1 billion in 24 hours. This record allows the decentralized exchange to overtake the Coinbase Pro platform when it comes to standardized trading volume.

Ranking of exchanges by standardized volume (24h) – Source: CoinGecko

Uniswap is overtaken by the platforms of Binance and OKEx which respectively have a daily volume of 1.1 billion and $ 6.4 billion.

Meanwhile, Uniswap has also taken the first place in terms of the value injected into its protocol. At the time of writing, the DEX occupies the number one place with $ 1.77 billion, while Maker (MKR) is in second position with $ 1.55 billion followed by Aave (LEND) with $ 1.47 billion.

The total value injected into decentralized finance protocols reached $ 9.27 billion.

👉 To find out more: Uniswap, the Ethereum token exchange protocol

A hegemony in danger?

While Uniswap’s recent success is spectacular, it may be short-lived. The last few weeks have been the scene of rapid proliferation competitors offering ever greater returns to liquidity providers.

SushiSwap, an unaudited fork of Uniswap, is already described as a “vampire attack” designed to suck cash from its competitor. LP tokens in farming on SushiSwap currently represent more than 72% of the total funds blocked on Uniswap.

SushiSwap is not the only platform looking to siphon cash from Uniswap. We can cite the recent projects of, Hotdogswap (HOTDOG), Pizzafinance (PIZZA) and Kimchi who are trying to attract liquidity providers with ever higher returns.

The native token of the HotdogSwap project went from $ 4000 to $ 1 in less than 10 minutes yesterday.

In addition, Uniswap will also have to deal with the growing competition decentralized exchanges based on a standard other than the ERC-20, including the next platform Polkaswap.

👉 To read on the same subject: SUSHI: $ 27 million in future dump?

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About the Author : Florent David


I began to discover the basics of blockchain and Bitcoin technology with Satoshi Nakamoto’s post: A Peer-to-Peer Electronic Cash System. The disruptive and controversial aspect of the subject quickly fascinated me!
All articles by Florent David.