Coinbase CEO Brian Armstrong responded to a report by Clara Medalie showing that decentralized exchange Uniswap’s daily trade volume has risen up to match the levels of Coinbase.
As per the statistics provided by Kaiko’s research director, Uniswap’s daily trading volume surged by 22% since the beginning of the year and, in its values, is nearing the levels of one of the largest centralized crypto exchanges, Coinbase.
The data also showed the market share volume of decentralized protocol compared to Coinbase has increased from 27% to nearly 50%.
Armstrong tweeted that the report took only Coinbase’s centralized exchange into consideration and overlooked the fact that it also operates through different channels like wallets and DEXes.
“In other words, for the Uniswap portion of the graph, a bunch of those orders is coming through Coinbase! So the story is more complex”, the tweet read.
Acknowledging Uniswap’s tremendous growth, the chief exec reiterated that Coinbase loves DEXes and will continue integrating with them.
Experts are of the view that the major surge has been due to Ethereum’s network transaction fees hitting the lowest since 2020.
In addition to that, the strong growth can also be attributed to DEXs providing liquidity for stablecoin swaps following the Terra blowup.
In the following thread, Kaiko expert Medalie also dived into Ethereum DEX market share, and found out Uniswap pretty much dominates the space about 80-90% of total daily volume.
However, the researcher observed DEX platforms so far occupy only a small share of the volumes of large centralized exchanges.
Coinbase & Co. Continue To Rule The Roost
For instance, the total share of the daily trading volume of all DEXes on the Ethereum blockchain comprises only 8% of the total share of CEXs like Binance, FTX, and Coinbase.
Meanwhile, the top crypto exchange, with over $2 billion in daily trading volume has recently decided to “temporarily shut down” its U.S. affiliate marketing program, according to Business Insider.
The development comes at a time when many web3 firms are exploring ways to cut costs amid a price slump in crypto assets.
The exchange reportedly plans on relaunching the program sometime in 2023 but did not provide any specific dates.