Uniswap, Ethereum’s popular decentralized exchange (DEX) platform, celebrates a major milestone. The team behind the protocol has announced that it has processed $ 1 trillion in trading volume so far via its official Twitter account.
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As shown below, this metric has been on the rise since September 2020. At that point, the protocol processed less than $ 10 billion in cumulative trading volume.
Uniswap processed approximately $ 250 billion in cumulative trading volume in March 2022, reaching $ 750 trillion, reaching the $ 1 trillion milestone in less than a year. This indicator is rising, even though it is currently on a downtrend across the global market.
The team behind Uniswap Said Less than:
It was one hell of a vehicle. As of today, the Uniswap protocol has passed a lifetime cumulative trading volume of $ 1 trillion (…). We couldn’t reach this milestone without the Uniswap community we continue to build with us. This is the next trillion.
Additional data provided by the team behind the protocol suggests that Uniswap’s popularity is increasing with its trading volume. DEX’s market share exceeded 50% in August 2020 and has exceeded 60% ever since.
Moreover, recently, the number of Uniswap users has reached about 4 million. In January 2021, the number of users of this indicator was less than 1 million. This is equivalent to a four-fold increase in just over a year. Hayden Adams, Inventor of Uniswap, Added:
Volume of $ 1 trillion for the entire period. I don’t often tweet milestones these days, but I’m curious about the four commas. I never expected Uniswap to grow that way. Thank you to everyone who got on the train.
What is behind the success of this Ethereum DEX?
There are three potential events that have led to an increase in Uniswap’s market share and popularity. Uniswap v2, the first deployment of the second iteration, introduced new features that were replicated across the DeFi sector.
The second is the launch of UNI, a governance token. The token was deployed around September 2020, when Uniswap’s fundamentals began to rise upwards, and was airdropped to all users who had manipulated the protocol.
This event marked a turning point in the adoption of the DeFi protocol. The following year, the sector flourished with the introduction of non-fungible tokens (NFTs) into the mainstream and the participation of more people in it.
The third event was the release of Uniswap v3, the third iteration of DEX. This version has provided more rewards to users with aggressive investment strategies.
Today, most blockchain networks cannot exist without the DeFi sector and its own version of Uniswap. Despite its popularity, DEX and other protocols are under the influence of current down-price actions across large cryptocurrencies.
Uniswap peaked in September 2021 with a total locked value (TVL) of nearly $ 10 billion, followed by trading volumes, according to token terminal data. Since then, this indicator has been on a downward trend and now appears to be consolidating.
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At the time of writing, UNI is priced at $ 5.57 and has lost 5.5% in the last 24 hours.
