A new report by Glassnode has revealed that of the total 2.1 milion users who have interacted with decentralized finance (DeFi), 1.53 million of them (~73%) have used UniSwap at some point in time.
This report comes at a time when the total value locked (TVL) in DeFi has hit an all-time of above $180 billion across the various protocols.
As of this writing, total locked assets stand at over $180 billion – over 22% increase in TVL in May 2021 alone.
In addition, over 1.98 million unique addresses hae interacted with DEXs to date.
The launch of UniSwap V3 has also been well received. As of this writing, V3 is now 7 days old and already has over $1 billion in 24hr volume, which is an impressive feat by any standards.
Decentralized exchanges (DEXs) like UniSwap have exploded in the last year. While lending commands the most liquidity, DEXs command the most users by a large margin.
DEXs allow liquidity providers to deploy capital to earn share of the trading fees and liquidity rewards. This, in turn, attracts users to the platform by market depth and availability of tokens that are of interest.
A positive feedback loop is created where more users create more fees and more fees attract more liquidity. Sufficiently high users and revenue from fees keeps liquidity in the protocol when liquidity rewards expire.
UniSwap is a classic example of a DEX that has been able to keep strong liquidity with incentive programs and still have user retention – a measure of a healthy exchange.
In just 12 months, DeFi has hit the following milestones:
- 2+ million users
- $120B+ in TVL on smart contracts
- $2B+ in daily DEX volumes
- Stablecoin utilization on lending platforms regularly over 89% on liquidity of $10B+
- $3B+ circulating and stability peg on DAI, a decentralized stablecoin
When you consider all of the above has taken place in just 12 short months, the future for DeFi is indeed bright.
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