- Trading volume surges on decentralized exchanges.
- Uniswap’s trading volume surpasses Coinbase Pro.
- Uniswap launches token and airdrops worth 400 UNI to all of its users.
- DeFi experienced exponential growth this year as compared to 2019.
Increase in Trading Volume of Decentralized Exchanges
Data from blockchain research firm Dune Analytics revealed that the aggregate trading volume on decentralized exchanges skyrocketed to 20 billion in September as the enthusiasm for decentralized finance applications continues to spread.
Furthermore, in the last 12 months, decentralized exchanges facilitated $44.617 billion in trades, depicting a larger growth in the sector. Moreover, decentralized exchanges have shown inherent advantages over centralized exchanges.
Decentralized exchanges such as Uniswap allows users to put up liquidity and create their own token pairs, which enables DeFi users to trade new tokens. To add on, users on the Uniswap exchange do not have to wait for token exchange listings.
Uniswap Leads DEX Sector
As trading volume on DEXs skyrockets, Uniswap takes the lead among the exchanges. The platform hit new highs in the past month — with a 24-hour trading volume of $426 million.
Uniswap Protocol inventor and Ethereum developer Hayden Adams proudly shared this achievement:
🦄 Uniswap: $426M
🏦 Coinbase: $348M
Hard to express with how crazy this is. pic.twitter.com/48o0xRkiUo
— Hayden Adams 🦄 (@haydenzadams) August 30, 2020
Due to the surge in interest in Uniswap, it surpassed the trading volume of Coinbase Pro — Coinbase’s full-service crypto exchange. Thus, showing explosive growth in DeFi-based decentralized exchanges.
To add on, Uniswap recently launched its own governance token UNI to assist in the development and maintenance of the Uniswap protocol. In distributing the token, Uniswap users received 400 UNI worth roughly $3,200. Additionally, 17.65% of the token’s supply was allocated to the team but it is vested to over four years.
Reasons For DeFi Hype in 2020
It is no doubt that DeFi experienced exponential growth this year as compared to the year 2019 when the market was stagnant. This resulted from the introduction of new concepts such as yield farming and governance tokens. Yield farming, allows users to earn yields across a variety of DeFi products in an optimized risk/reward way.
Governance tokens such as COMP and YFI have become Ethereum’s most popular DeFi projects in 2020. They give holders the right to influence the direction of decentralized finance projects. Thus, they have become increasingly popular in the crypto economy, boosting the DeFi platform further.
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