Uniswap, one of the earliest decentralized exchanges (DEX), has created history by reaching $1 trillion in trading volume since its launch. The success largely follows the launch of v4 upgrade and the Unichain layer-2 this year.
Hayden Adams, the CEO of the Uniswap Labs, announced this achievement in a post on X. He said that the volume reached this record high mark after the recently improved regulatory environment.
The improved regulatory landscape refers to the recent developments in the U.S. that have reduced uncertainty risks for Uniswap as well as the whole crypto industry. In February, the U.S. Securities and Exchange Commission (SEC) had a settlement with Uniswap Labs that provided clearer guidelines, avoiding the immediate classification of UNI as an unregistered security. This is one of the contributors to this perceived improvement.
Since its crypto journey, 80% of the cumulative trading volume, worth $791.8 billion, occurred after the decentralized finance (DeFi) boom of 2021, a period when DeFi protocols gained significant traction. Dune Analytics dashboard shows that half of its trade volume occurred in the past eight months, with the platform facilitating $52.5 billion worth of trades in May. The month with the highest trading volume was November 2021, when Uniswap handled over $85.5 billion in transactions.
To elaborate a little further on the new milestone, roughly 94 million trades have been facilitated so far on the Uniswap platform involving 8.3 million unique blockchain addresses.
Growing presence of Uniswap
Over the past week, decentralized exchanges (DEXs) executed trades worth $21 billion, with Uniswap capturing 71% of the share. Uniswap’s average trade value has also surged from the earlier level of $200 in January 2019 to as high as $24,000 in May 2022.
According to DeFiLlama data, Uniswap currently has a total value locked (TVL) of $5.61 billion. This figure is 56% up from November’s high of $10.46 billion, and nearly 90% of TVL is on Ethereum.
However, on the contrary, Uniswap’s native token UNI has collapsed by 82% ever since it peaked at $44.97 in May 2021. At the time of writing, the UNI token was trading at $8.14—according to data by CoinMarketCap.
Also Read: Toyota, Yamaha, and BYD Accept Tether in Bolivia Amid Dollar Crisis
