Uniswap has raked in some eye-popping numbers over the years. This week, it went on to become the first decentralized exchange [DEX] to blast past $0.3 billion in cumulative volume as per the latest chart on Dune Analytics.
As the appeal of DEXs gained traction, the platform was not only observed to be gobbling up the market share of the entire decentralized finance [DeFi] space but has also given stiff competition to its centralized peers.
Exactly, a year before, the Ethereum-based DEX recorded a volume of $1 billion. Meaning, over the past year, as the DeFi sector exploded, Uniswap’s volume grew by almost 100%.
Despite several clones, Uniswap has maintained its dominance in the DeFi sector. The release of its third iteration in May this year has only strengthened its position. V3 is touted as a critical milestone for the ecosystem since it merges the concept of limit order books from traditional exchanges into the automated market maker [AMM], this bringing in higher levels of efficiency, flexibility, and liquidity into space.
Following the v3 launch, Uniswap went on to become the second most popular DEX on the Ethereum network and was found to be right behind the previous version v2 by trading volume. Meanwhile, it has dwarfed its rivals such as SushiSwap and Ox while facilitating significantly lower gas fees while offering greater capital efficiency for its users.
Lauding the growth and the latest version, Hayden Adams, the founder of platform, stated,
“Capital efficiency in action: The Uniswap v3 USDC/ETH 0.05% fee tier pool is doing $258m volume on just $48m TVL. On its own this pool would be the #2 DEX, with higher volume than other AMMs with billions in TVL.”
While v3 has not been able to replace its previous iteration, many analysts in the DeFi space believes that the latest one could potentially witness an increased usage by liquidity providers and retail users considering its enhanced functionality.