Uniswap has become the first decentralized trading platform to process over $100 billion in cumulative volumes.
Racking, on average, about $11.1 billion in trading volumes every month, the exchange allows uers to swap Ethereum-based ERC20 tokens driving investors onto the platform.
Commenting on this milestone, Hayden Adams, founder of UniSwap, said:
“Uniswap just became the first decentralized trading platform to process over $100b in volume – an exciting milestone for DeFi.”
– Founder, UniSwap
So far, Uniswap has over $4.3 billion locked into smart contracts, and as more projects continue being built on Ethereum, many are opting to list on decentralized exchanges (DEXs) like Uniswap.
The growth and dominance of Uniswap in the DEX space can be seen from this monthly breakdown.
What makes UniSwap so attractive to investors? Here are some reasons:
- Uniswap allows anyone to signup with no background checks or KYC requirements unline exchanges like Binance or CoinBase
- Easy-to-use interface allowing you to connect your MetaMask and other wallets and simply swap one token for another
- Uniswap offers massive liquidity for listed projects enabling them to reach a much wider circle of potential investors
Decentralized exchanges like Uniswap however have one limitation which locks out small traders – high transaction costs. These costs can sometimes be as high as $100 during peak overloads for transaction swaps.
This however does not seem to be deterring growth and trading activity continues to grow unabated despite high fees.
As of this writing, the total value locked on DeFi now stands at over $57 billion.
RECOMMENDED READING: [WATCH] The DeFi Revolution will Get its Customer Base from Africa, Says Cardano CEO
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