Uniswap, the popular decentralized exchange (DEX), has achieved a landmark trading volume of over $2 trillion. It’s now viewed as a strong competitor to established centralized exchanges like Coinbase.
This milestone was confirmed by data from a Dune Analytics dashboard, managed by Zach Wong, who serves as Uniswap’s lead for strategy and operations, and was reached at approximately 11:55 a.m. UTC on April 5.
The cumulative trading volume includes transactions carried out on a variety of blockchains that Uniswap operates on, such as Ethereum, Polygon, Optimism, Arbitrum, Celo, BNB Chain, Base, Blast, and the Avalanche Network.
For The ETHUSD Pair, Uniswap had 2 Times More Liquidity Than Both Binance And Coinbase
The Block’s data highlights that although Binance remains at the forefront in terms of trade volume peaks, Uniswap’s trajectory demonstrates consistent growth and a rising trust in decentralized finance (DeFi) offerings.
An important observation from early 2024 shows Uniswap’s transaction volume experiencing a notable increase, narrowing the volume disparity with Coinbase and occasionally surpassing it. This trend is reflective of a broader shift in investor preference towards platforms that facilitate direct, wallet-to-wallet transactions, providing more control over one’s assets.
The heightened transaction volume at Uniswap, especially in March 2024, indicates a growing trend among traders to opt for decentralized exchanges (DEXs) over centralized ones during periods of increased trading activity.
Furthermore, a research study conducted last year said that Uniswap offers more liquidity in several key cryptocurrency pairs compared to even the largest centralized exchanges like Binance and Coinbase.
Notably, for the Ethereum to US dollars trading pair (ETHUSD), Uniswap boasted twice the liquidity found on Binance and Coinbase. When it came to the Ethereum against Bitcoin pair (ETHBTC), Uniswap’s liquidity was three times that of Binance and 4.5 times greater than Coinbase’s.
The Second Trillion Came Twice As Fast As The First One
Uniswap made its debut in November 2018 and achieved its first $1 trillion in trading volume by May 2022, a journey that took 42 months. Remarkably, it reached its second $1 trillion in trading volume in under 24 months, despite the growing competitive landscape of decentralized exchanges (DEXs).
It’s official: just passed $2T in all-time protocol volume ???? pic.twitter.com/gI1b5bL5ZS
— Uniswap Labs ???? (@Uniswap) April 5, 2024
Holding the title of the largest DEX by trading volume, Uniswap recorded an impressive $21.6 billion in volume just in the last week, according to data from a Dune Analytics dashboard shared by Fredrik Haga, a co-founder of the platform.
Following Uniswap, PancakeSwap, which is based on Uniswap’s framework, secured the second spot with a trading volume of $9.6 billion.
Other prominent DEXs, including Curve, Balancer, and Trader Joe, are also significant players, with their weekly trading volumes falling between $800 million and $1.8 billion.
