Uniswap, a leading decentralized exchange (DEX), achieved a remarkable milestone by reaching $2 trillion in total trading volume as of 11:55 AM (UTC) on April 5, according to insights from the Dune Analytics dashboard managed by Zach Wong. . Head of Operations at Uniswap. This significant volume includes transactions conducted on several blockchains that support Uniswap, such as Ethereum, Polygon, Optimism, Arbitrum, Celo, BNB Chain, Base, Blast, and Avalanche Network.
Uniswap’s Rapid Growth: Reaches $2 Trillion in Record Time
It took Uniswap 42 months to reach $1 trillion in trading volume after its launch in November 2018 by May 2022. Remarkably, the platform achieved $2 trillion in trading volume within the next 24 months, demonstrating solid growth despite increasing internal competition. Decentralized exchange environment.
Last week alone, Uniswap reported trading volume reached $21.6 billion, according to platform co-founder Fredrik Haga’s Dune Analytics dashboard. This puts Uniswap at the forefront of the DEX market, well ahead of its closest competitor, PancakeSwap, which recorded $9.6 billion in trading volume. Other DEXes such as Curve, Balancer, and Trader Joe’s are also prominent, with trading volumes ranging from $800 million to $1.8 billion.
Challenge centralized exchanges
Uniswap’s record trading volume positions it as a strong competitor to centralized exchange giants like Binance and Coinbase (NASDAQ:COIN). According to data from The Block, Binance continues to experience higher trading volume peaks, while Uniswap has shown continued growth and increasing trust among traders for decentralized finance (DeFi) solutions.
In particular, Uniswap’s trading volume increased significantly in early 2024, narrowing the gap with Coinbase and sometimes even surpassing it. This trend highlights a widespread shift among investors toward platforms that facilitate direct wallet-to-wallet trading and provide increased control over their personal assets.
In particular, Uniswap’s trading volume peak around March 2024 indicates that traders are gradually choosing DEX over centralized exchanges as a trusted trading venue during periods of increased market activity.
A research study conducted last year further highlighted Uniswap’s competitive advantage, revealing that Uniswap has deeper liquidity for several major cryptocurrency trading pairs than the largest centralized exchanges, including Binance and Coinbase. On popular Ethereum trading pairs against the United States Dollar (USD), Uniswap appears to have twice the liquidity of Binance and Coinbase. Additionally, for the Ethereum vs. Bitcoin trading pair, Uniswap’s liquidity is 3x that of Binance and 4.5x that of Coinbase, demonstrating significant market presence and trader preference.
Featured Image – iStock Photos
Please see disclaimer