How Ethereum’s Uniswap Reached A Milestone Of $1 Trillion In Trading Volume
May 24 2022 - 2:00PM
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Popular decentralized exchange (DEX) platform on Ethereum, Uniswap,
celebrates a major milestone. Via its official Twitter account, the
team behind the protocol announced that it has processed $1
trillion in all-time trading volume. Related Reading
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Crypto with It As seen below, this metric has been on an uptrend
since September 2020. At that time, the protocol processed less
than $10 billion in cumulative trading volume. The $1 trillion
milestone was reached in less than a year as Uniswap went
processing around $250 billion in cumulative trading volume to $750
trillion in March 2022. The metric has been on the rise despite the
current downtrend across global markets. The team behind Uniswap
stated the following: It’s been one hell of a ride. As of today,
the Uniswap Protocol has passed a lifetime cumulative trading
volume of $1 Trillion (…). We couldn’t have reached this milestone
without the Uniswap community that continues to build alongside us.
Here’s to the next Trillion. Additional data provided by the team
behind the protocol suggest Uniswap’s popularity has been
increasing along with its trading volume. The DEX’s market share
surpassed 50% in August 2020 and has reached over 60% since that
time. In addition, the number of Uniswap Users recently hit almost
4 million. In January 2021, the metric stood at less than 1 million
users. This represents a 4x increase in a little over a year. The
inventor of Uniswap, Hayden Adams, added: $1 trillion all-time
volume. I don’t tweet milestones as often these days, but four
commas blows my mind. Never expected Uniswap to grow the way that
it has. Thanks to everyone who has been along for the ride. What’s
Behind This Ethereum DEX Success? There are three potential events
that have resulted in Uniswap’s increase in market share and
popularity. The first in the deployment of its second iteration,
Uniswap v2 introduced new features and functionalities replicated
across the entire DeFi sector. The second is the launch of its
governance token, UNI. The token rolled out around September 2020,
when Uniswap’s fundamental began their upwards ascend, and it was
airdropped to all users that ever interacted with the protocol. The
event marked an inflection point in the adoption of DeFi protocols.
The next year, the sector boomed with the introduction of
non-fungible tokens (NFTs) into the mainstream and more people
onboarding it. The third event was the launch of DEX’s third
iteration, Uniswap v3. This version offered more rewards to users
with active investment strategies. Today, most blockchain networks
can’t exist without a DeFi sector and their own version of Uniswap.
Despite its popularity, the DEX and other protocols have been
affected by the current downside price action across large
cryptocurrencies. Data from Token Terminal suggests Uniswap peaked
in September 2021 when its total value locked (TVL) was close to
$10 billion and its trading volume followed. Ever since then, this
metric has been in a downtrend and currently appears to be
consolidating. Related Reading | TA: Bitcoin Price Stuck In
Key Range, Why Dips Might Be Limited At the time of writing, UNI’s
price stands at $5.57 with a 5.5% loss in the last 24-hours.
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