Uniswap’s decentralized exchange (DEX) hit a new weekly volume record. Specifically, with accumulated transactions that exceeded $ 10 billion. This was indicated by its creator Hayden Adams.
As a fun fact, despite the high transaction fees on the Ethereum Blockchain, people continue to flock to the network’s DeFi platforms.
Uniswap’s weekly trade volume
Indeed, Uniswap CEO Hayden Adams wrote on Twitter on Tuesday, with an accompanying graph showing a 25.7% weekly increase in trading volumes.
«Weekly trading volume exceeded $ 10 billion for the first time».
What is the decentralized exchange based on Ethereum?
It is worth explaining that Uniswap is a decentralized exchange protocol based on Ethereum. That allows anyone to exchange ERC20 tokens.
Also, they include Stablecoins like Tether and USDC. As well as tokens for DeFi protocols such as Aave and Celsius. And, in particular, Uniswap’s UNI governance token, which allows users to vote on platform changes.
This protocol was created by Hayden Adams in 2018. Although, the underlying technology is inspired by ideas of Vitalik Buterin, co-founder of Ethereum.
Additionally, Uniswap is a popular platform for investors looking to access new and emerging DeFi projects. Also, other so-called hidden gems, which are not yet available in the main centralized exchanges such as Coinbase, Kraken or Binance.
It is worth remembering, that Uniswap reached a major milestone in February 2021 when cumulative trade volumes first exceeded $ 100 billion. Since mid-2020, Uniswap’s dramatic growth reflected DeFi’s first bull market.
In this regard, Hayden Adams tweeted that his platform became the first decentralized exchange to process more than $ 100 billion in transactions.
«Uniswap just became the first decentralized trading platform, to process more than $ 100 billion in volume. An exciting milestone for DeFi».
Roughly, according to the most recent industry data, $ 117 billion has been locked into DeFi projects.
What is Uniswap facing?
Incidentally, Uniswap faces pressure from clients from SushiSwap and other Ethereum-based DEXs. But, it also faces competition from non-Ethereum DEXs, such as Binance Smart Chain’s PancakeSwap. Mainly, because clients are looking to evade Ethereum’s high fees.
So while Uniswap can certainly celebrate reaching this milestone, there is work to be done. Undoubtedly, Uniswap is aware of the need to remain competitive. Will we continue to appreciate more records? Leave us your opinion in the comment box.
I close with this phrase by Henry David Thoreau: «The cost of a thing is the amount of what I call life, necessary to acquire it. Either short term or long term».