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Uniswap Still The Top Dog, But SushiSwap Isn’t Far Behind

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Uniswap has held the title of champion for a long time. But what started as a simple fork has evolved into a serious challenger. Yes, we are talking about SushiSwap which has emerged as a potential rival and has grown from just a clone to the third-largest decentralized exchange [DEX].

Originally popped out as a fork of Uniswap v2, SushiSwap was deemed a ‘lost cause’ by several notable market players the platform’s Co-creator ‘Chef Nomi’ dumpped all of his SUSHI tokens on the market for $14 million worth of ETH.

It was not until ‘0xMaki’, who happens to be SushiSwap’s co-founder, took the responsibility to lead the project which helped it to come back on track and exceed other notable decentralized finance [DeFi] platforms.

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Months later, the market’s most popular duo is fighting against odds to retain their respective positions. According to DeFi Pulse, Uniswap was the second-largest DEX in terms of total value locked which was $4.13 billion. SushiSwap, on the other hand, stood at the third spot as mentioned earlier with a TVL of $3.60 billion.

Uniswap Wins But SushiSwap Emerges From The Ashes

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In terms of market share, it is undoubtedly, Uniswap that has a clear lead with a whopping 54.8% trade volume while SushiSwap stands just right behind with 20.8%.

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In addition to that, it was also found that over the past three weeks, Uniswap has averaged daily volume between $700 million and $1.35 billion. Simultaneously, SushiSwap showed an average daily volume of $300 million to $700 million.

Digging deeper, it was also observed that even as Uniswap continued to process twice as much volume as its rival, the monthly trend evidenced that SushiSwap has improved its figures to become a strong competitor.

Both the platforms’ governance token has also reached new all-time highs amid the bull season. What’s even more interesting is that both the DEXs have witnessed their goals diverge despite their controversial entry into the DeFi ecosystem. And while Uniswap still takes a lead, SushiSwap’s growth in the past several months cannot be ignored.

After SushiSwap exit, Will DeFi Listing be more Filtered on Exchanges?

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The biggest strength of the digital asset industry is sometimes its biggest downturn. DeFi has been a prime example of the recent SushiSwap dilemma. When the collective valuation of all assets was high, Yield Farmers and the new DeFi projects were talking to the city. As their bubble burst over the past week, SuShiSwap-associated proponents were the first to fold their cards on September 5.

According to an announcement made by Sushi’s anonymous developer Chef Nomi, he claimed that he was relinquishing his admin control of the ‘MasterChef’ and relinquishing his address to the MultiSig address behind the timelock.

However, what happened before the announcement was the key reason behind the enraged community. Prior to the release of the statement on Twitter, it was identified that Chef Nomi had an ETH / SUSHI liquidity pool. In a single transaction, SUSHI registered a withdrawal of SUSHI 2.5 million from the pool and exchanged these SUSHI tokens for ETH 18,000. It was found that his address was close to 35,000 ETH after the transfer.

Such an exit from the founder of a token did not fit well with the community, and people began to criticize the legitimacy of DeFi, particularly its listings of major exchanges.

Binance’s CZ faces backlash over DeFi listing

Taking the blame game to the next level, the community began to argue whether these DeFi tokens should have been listed first. Considering that Binance was one of the first major exchanges to introduce Sushi to potential users, the community indirectly questioned the work of Changpeng Zhao and the Binance team on the evaluation of DeFi projects before listing them.

During the outcry, CZ responded that he did not know the founder of SushiSwap and reasoned that if Binance did not list new DeFi coins, the traffic would flow into other exchanges, making Binance ‘obsolete.’ The Block’s Larry Cermak responded to his statement. He said,

He also added that such centralized exchanges should take credit for scam projects when they go wrong and take fundamental steps to minimize the chances of project exit scamming in the future.

Will DeFi listing get better after the SushiSwap conundrum?

Although there is no guarantee in this respect, the SushiSwap incident highlighted the major impact of DeFi, which was evident from the outset; these projects are still subject to huge market risks.

Now the reports suggested that Chef Nomi had transferred the admin control to Sam Bankman-Fried, CEO of FTX. The CEO of FTX has gained a reputable name over the last few months and there is a growing hope that the Sushi project will undergo a successful migration of tokens from Uniswap tp Sushiswap.

Uniswap Records More Trading Volume than Coinbase Pro; But Will the Hype Sustain?

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Fueled by the DeFi frenzy, Uniswap, a decentralized exchange [DEX] on Ethereum has hit a fresh ATH of $1.828 billion in terms of the total value locked. The platform, which happens to be the world’s largest DEX in terms of its volume has managed to outpace some of the industry’s crucial centralized rivals such as Coinbase Pro whose 24-hour volume at the time of writing stood at $704.34 million.

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So how did it achieve such feet? Uniswap, the star in the Ethereum world, first saw a massive rise in July 2020. This was when total capital locked up in Uniswap grew by a staggering 200% in a little over a month. The protocol rose to fame in such a short duration of time primarily because of three key factors decentralization, trust in the platform, and accessibility of all ERC 20 tokens. The fact that many small to mid-cap DeF tokens actively traded on Uniswap, especially those not listed on major platforms further extended its popularity.

Centralization concerns

Uniswap’s launch of V2, which introduced new features, came in as a blessing for the ecosystem as by that time the DeFi craze in the community had already taken off.

However, there was a growing concern among the community members that Uniswap was growing away from its guiding principle of decentralization. The venture capitalists [VC] funding worth $11 million was a major controversy that catalyzed the already existing concerns. However, it was not just the involvement of the VCs that gave rise to skepticism, but also the argument that the liquidity providers [LPs] were not highly rewarded as many of them would have liked.

With the introduction of the whole new yield farming protocols, people expected higher returns on staked funds, and that is where Uniswap struggled.

And then entered Sushi 

Led by a figure under the name of ‘Chef Nomi’, Sushi is essentially a fork of Uniswap. What bootstrapped Sushi’s adoption was its goal to solve the former’s centralization concerns as well as incentives for LPs. The native SUSHI token was aimed at providing the holder with governance rights as well as revenue share.

Its official announcement detailed,

“With SushiSwap, one can also provide some liquidity into a pool and earn rewards in the form of SUSHI tokens. However, unlike Uniswap, those SUSHI tokens will also entitle you to continue to earn a portion of the protocol’s fee, accumulated in SUSHI, even if you decide to no longer participate in the liquidity provision. As an early adopter to help provider liquidity, you become a significant stakeholder of the protocol.”

Despite the fact that Sushi can potentially take over an alarming amount of liquidity from Uniswap, however, it will not cause the latter’s demise. As noted by the recent Glassnode blog post, Uniswap’s brand recognition, third-party integrations, the DEX will “live on”. If further noted Uniswap will almost certainly have enough liquidity and volume to compete against SushiSwap.

DeFi’s Latest Project KIMCHI Locks $500 Million Hours After Launch

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The Decentralized Finance [DeFi] wing of the cryptocurrency ecosystem has been under the spotlight for some time now. Even though the pandemic quashed almost every other market, the DeFi market has been on an uphill journey. The benefits that the community sought from DeFi were beyond their expectations this further led to several venturing into the space. While the crypto community is exploring the existing DeFi projects, yet another DeFi farming token made an entry into the DeFi space.

From SUSHI To KIMCHI

KIMCHI is more than just a spicy Korean dish to the crypto-verse. This new DeFi project made its way into the ecosystem after Yuno and Uniswap forked project, Sushi forked earlier today. While other projects have been working their way up, KIMCHI has already turned heads. The project locked a total of $500 million, just hours after its existence. A Twitter user tweeted about the same,

Similar to other DeFi projects, KIMCHI caught the attention of the community by displaying high digits, however, it wasn’t too long until it tumbled down to $150 million. This nascent project seems to be eager to get on top as the “About” page of the official website of KIMCHI failed to give users more insights about the project. But it rather stressed on,

“KIMCHI could be the next hot DeFi farming token. Who knows?!”

The official website of the token revealed that users could farm and trade KIMCHI with Ether [ETH], SUSHI, TEND, and even the largest stablecoin Tether [USDT].

While the market cap of the KIMCHI token is still uncertain, the price of the token witnessed a 46.7% rise in the last 24 hours. The price of this DeFi token went on to hit a high of $12.26, just a few hours after its launch. However, during press time KIMCHI was trading at $7.26 with a 17.7% plummet in its price in the last 1 hour.

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DeFi’s One Way Ticket To The Top

While more projects have been making an entry into the DeFi space, the number of people investing in the market has also increased. Ever since June 2020, the total value locked in DeFi has been going up the ladder without looking back. Recently, DeFi’s value hit an all-time high of $9 billion. It certainly won’t be long until DeFi locks $10 billion as the current numbers are at $9.46 billion, which is its latest all-time high. With Uniswap accounting for $1.65 billion, it continues to dominate the DeFi space.

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