How Ethereum’s Uniswap Reached A Milestone Of $1 Trillion In Trading Volume

2 years ago

Popular decentralized speech (DEX) level connected Ethereum, Uniswap, celebrates a large milestone. Via its authoritative Twitter account, the squad down the protocol announced that it has processed $1 trillion successful all-time trading volume.

As seen below, this metric has been connected an uptrend since September 2020. At that time, the protocol processed little than $10 cardinal successful cumulative trading volume.

The $1 trillion milestone was reached successful little than a twelvemonth arsenic Uniswap went processing astir $250 cardinal successful cumulative trading measurement to $750 trillion successful March 2022. The metric has been connected the emergence contempt the existent downtrend crossed planetary markets.

The squad down Uniswap stated the following:

It’s been 1 hellhole of a ride. As of today, the Uniswap Protocol has passed a beingness cumulative trading measurement of $1 Trillion (…). We couldn’t person reached this milestone without the Uniswap assemblage that continues to physique alongside us. Here’s to the adjacent Trillion.

Additional information provided by the squad down the protocol suggest Uniswap’s popularity has been expanding on with its trading volume. The DEX’s marketplace stock surpassed 50% successful August 2020 and has reached implicit 60% since that time.

In addition, the fig of Uniswap Users precocious deed astir 4 million. In January 2021, the metric stood astatine little than 1 cardinal users. This represents a 4x summation successful a small implicit a year. The inventor of Uniswap, Hayden Adams, added:

$1 trillion all-time volume. I don’t tweet milestones arsenic often these days, but 4 commas blows my mind. Never expected Uniswap to turn the mode that it has. Thanks to everyone who has been on for the ride.

What’s Behind This Ethereum DEX Success?

There are 3 imaginable events that person resulted successful Uniswap’s summation successful marketplace stock and popularity. The archetypal successful the deployment of its 2nd iteration, Uniswap v2 introduced caller features and functionalities replicated crossed the full DeFi sector.

The 2nd is the motorboat of its governance token, UNI. The token rolled retired astir September 2020, erstwhile Uniswap’s cardinal began their upwards ascend, and it was airdropped to each users that ever interacted with the protocol.

The lawsuit marked an inflection constituent successful the adoption of DeFi protocols. The adjacent year, the assemblage boomed with the instauration of non-fungible tokens (NFTs) into the mainstream and much radical onboarding it.

The 3rd lawsuit was the motorboat of DEX’s 3rd iteration, Uniswap v3. This mentation offered much rewards to users with progressive concern strategies.

Today, astir blockchain networks can’t beryllium without a DeFi assemblage and their ain mentation of Uniswap. Despite its popularity, the DEX and different protocols person been affected by the existent downside terms enactment crossed ample cryptocurrencies.

Data from Token Terminal suggests Uniswap peaked successful September 2021 erstwhile its full worth locked (TVL) was adjacent to $10 cardinal and its trading measurement followed. Ever since then, this metric has been successful a downtrend and presently appears to beryllium consolidating.

At the clip of writing, UNI’s terms stands astatine $5.57 with a 5.5% nonaccomplishment successful the past 24-hours.