Uniswap, a decentralized exchange (DEX), has traded more than $2 trillion in total, putting it on par with Coinbase and other large centralized exchanges.
Zach Wong, head of strategy and operations at Uniswap, set up a Dune Analytics dashboard that recorded the $2 trillion mark at around 11:55 a.m. UTC on April 5.
Trading volume includes all Uniswap-supported blockchain transactions, including those on Ethereum, Polygon, Optimism, Arbitrum, Celo, BNB Chain, Base, Blast, and the Avalanche Network.
After Uniswap’s November 2018 inception, it took 42 months until May 2022 until the trading volume surpassed $1 trillion.
Nevertheless, despite fierce competition in the DEX market, it reached $2 trillion in only 24 months. One of the creators of the platform, Fredrik Haga, revealed on a Dune Analytics dashboard that Uniswap, the biggest DEX by trading volume, has accumulated an incredible $21.6 billion in volume in only the last week.
Uniswap’s offshoot, PancakeSwap, comes in at number two with $9.6 billion in trading volume. Trader Joe, Balancer, and Curve are the other three prominent DEXs, and their volumes range from $800 million to $1.8 billion, completing the top five.
Uniswap has become a serious competitor to centralised powerhouses like Binance and Coinbase, and its record transaction volume is a testament to that.
Data from The Block shows that Binance has the highest transaction volume peaks, but Uniswap has been steadily growing and traders are becoming more confident in DeFi solutions, which is good news for Binance.
In early 2024, Uniswap’s volume had a tremendous surge, bringing it close to Coinbase’s and even surpassing it at times; this development deserves special mention.
This upsurge is in line with a larger market trend, which may indicate that investors are shifting their focus to platforms that allow for wallet-to-wallet exchanges and give users more controlling over their own assets.
In addition, the fact that Uniswap’s volume peaked in March 2024 indicates that DEXs are becoming more attractive to traders at peak activity compared to centralized exchanges.
Last year, a report said that Uniswap had more liquidity in many significant crypto trading pairings compared to even the most prominent centralized exchanges like Binance and Coinbase.
The analysis found that Uniswap has double the liquidity of Binance and Coinbase on the popular Ethereum/USD trading pair.
The liquidity on Uniswap for Ethereum vs Bitcoin was three times that of Binance and an astounding 4.5 times that of Coinbase.
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