Cumulative trading volumes on Uniswap rose to $100 billion earlier today, with Uniswap being the first decentralised exchange (DEX) to do so.
Hayden Adams, founder and CEO of DEX, took Twitter earlier today to share a tweet about Uniswap’s growth, calling it “an exciting milestone for DeFi.”
With the advent of DeFi, today’s crypto-market has seen a significant increase in decentralised exchanges.
In fact, Messari’s study of last September found that DEXs were seriously threatening the supremacy of centralised exchanges. Although last September’s monthly volume for DEXs amounted to around $26 billion, January 2021 saw DEX volumes grow above $50 billion.
Uniswap accounted for the majority of these amounts, with the platform being easily the market leader among DeFi protocols enabling decentralised trading.
Uniswap v3 could have an even more positive effect on DEX trading volumes. The revised version of the protocol is expected to provide more opportunities for liquidity mining. Although an official launch date has yet to be revealed, users have speculated that Uniswap v3 can be expected by the second quarter of the year.
It should be noted, however, that another trend has emerged over the last few months, which is Sushiswap’s growing market share.
Interestingly, while Uniswap accounted for 53.5 per cent of the overall DEX trading volume in the last 24 hours, Sushiswap was not far behind, accounting for almost 20 per cent of the remaining volume.
The increasing success of these decentralised exchanges has also caught the attention of asset managers beyond the realms of Crypto and DeFi.
In reality, a recent study by Alliance Bernstein, a New York-based asset management company, revealed a side-by-side comparison between Uniswap and Sushiswap, along with a few other big decentralised exchanges.
Alliance Bernstein, explaining to clients the importance of these decentralised exchanges, may have far-reaching ramifications for both protocols, possibly suggesting that their future development from more mainstream acceptance would outpace their current levels.
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