Since its introduction on Ethereum in late 2018, the decentralized exchange (DEX) Uniswap has surpassed $1 trillion in total trading volume.
However, this is based on a limited user base, indicating that there is a lot of room for expansion. After just over three years, the DEX’s number of cumulative addresses reached roughly 3.9 million this month, according to data from Uniswap Labs, a major contributor to the protocol’s and ecosystem’s development.
“Over the past three years, the Protocol has Onboarded millions of people to the world of DeFi, Introduced fair and permissionless trading, and Lowered the barrier to liquidity provision,” the Uniswap Labs team wrote on Twitter.
Layer-2 scaling solutions Polygon, Optimism, and Arbitrum are currently supported by Uniswap. Uniswap Labs also announced earlier this month that the DEX will be expanded to include two EVM-compatible chains, Gnosis Chain and Moonbeam Network, as well as a Polkadot-based para-chain.
In the DEX market, Uniswap is far ahead of its competitors in terms of trade volume. According to CoinGecko, Uniswap’s V3 protocol generated $938 million in volume in the last 24 hours, accounting for 33% of the entire market share.
With $491 million and 17.3 percent of the market, Binance Smart Chain-based PancakeSwap (v2) comes in second.
When comparing Uniswaps’ 24 data to those of controlled exchanges (CEXs), its $938 million in volume trails platforms like Binance, FTX, and Coinbase, which generated $12.2 billion, $1.95 billion, and $1.79 billion, respectively.
However, the DEX is far ahead of several major cryptocurrency exchanges like Crypto.com and Kraken, which respectively made $724.9 million and $597.4 million.
According to DeFi Llama, Uniswap has $5.93 billion in total value locked (TVL), the fifth-largest amount in the decentralized finance (DeFi) sector, while PancakeSwap ranks seventh with $4.27 billion in TVL. With $9.82 billion in TVL, MakerDAO is the largest platform.
Uniswap hasn’t done much to influence the price of its native asset UNI in 2022, despite its potential to draw substantial demand and liquidity. UNI has lost roughly 67 percent since the beginning of January and is currently trading at $5.59.
The all-time high for UNI was $44.92 in early May 2021, and the stock has dropped 87.5 percent since then.