Uniswap's Trading Volume: Uniswap, a decentralized exchange (DEX), has reached a milestone of over $2 trillion in lifetime trading volume, achieved on April 5, encompassing transactions across various blockchains including Ethereum, Polygon, and BNB Chain.
Rapid Growth: Despite initial projections, Uniswap surpassed $2 trillion in less than two years since its inception in November 2018, showcasing remarkable growth and competitive edge in the DEX market.
Competitive Positioning: Uniswap emerges as a formidable competitor to centralized exchanges like Coinbase and Binance, boasting consistent growth, deep liquidity, and increasing trader trust in decentralized finance (DeFi) solutions.
With over $2 trillion in lifetime trading volume, decentralized exchange (DEX) Uniswap is on par with significant controlled exchanges like Coinbase.
With over $2 trillion in lifetime trading volume, decentralized exchange (DEX) Uniswap is on par with significant controlled exchanges like Coinbase. (Photo : by Chris McGrath/Getty Images)
The $2 trillion milestone was reached at 11:55 a.m., according to data recorded by a Dune Analytics dashboard developed by Zach Wong, Uniswap's strategy and operations head, on April 5.
The trade volume statistic includes all transactions made on the Ethereum, Polygon, Optimism, Arbitrum, Celo, BNB Chain, Base, Blast, and Avalanche Network, among other blockchains that enable Uniswap.
Uniswap Price Prediction: What Passing the Second Trillion in Less Than Two Years Means
When Uniswap was first introduced in November 2018, it took 42 months to reach the milestone of $1 trillion in trading volume by May 2022.
Nevertheless, despite growing competition in the DEX market and Uniswap price predictions, it was able to cross the $2 trillion threshold in less than a year.
Uniswap, the biggest DEX by trading volume, has recorded an incredible $21.6 billion in activity in the last week alone, according to a Dune Analytics dashboard maintained by one of the platform's founders, Fredrik Haga.
Second place goes to PancakeSwap, a Uniswap derivative with $9.6 billion in trading volume.
The top five DEXs are rounded out by Trader Joe, Balancer, and Curve, with volumes ranging from $800 million to $1.8 billion.
With record-breaking transaction volume, Uniswap has become a serious competitor to centralized giants like Coinbase and Binance. It has also garnered positive Uniswap price predictions over time.
The Block data indicates that although Binance leads the group because of its greater transaction volume peaks, Uniswap's performance demonstrates consistent growth and growing trader trust in DeFi solutions.
One pattern that stands out in particular is the one that was observed in the first part of 2024, when Uniswap's volume had a sharp increase, closely catching up to Coinbase's and occasionally surpassing it.
This increase is consistent with a wider trend in the market, indicating a shift in investor behavior toward platforms that facilitate direct, wallet-to-wallet exchanges and provide more control over individual assets.
Furthermore, the volume peak of Uniswap, especially around March 2024, indicates that traders are increasingly using DEXs as competitive substitutes for their centralized equivalents during periods of increased activity.
According to a research study conducted last year, even the biggest centralized exchanges, including Binance and Coinbase, cannot match Uniswap's deeper liquidity in a number of significant cryptocurrency trading pairings.
Uniswap has twice as much liquidity on the well-known Ethereum vs. USD trading pair as both Binance and Coinbase, according to the report.
Uniswap's liquidity for Ethereum was a remarkable 4.5 times deeper than Coinbase's, and three times deeper than Binance's for Bitcoin.
