Many decentralized platforms are now gaining some recognition as the crypto space continues to attract notable investors. Some weeks ago, many DEX tokens showed immense gains, signaling larger trading volumes and investors joining the decentralized exchanges and using the tokens. On the other hand, centralized exchanges do not show impressive growth, with DEX overperforming on many grounds.
The DEX allows people to trade directly with other buyers and sellers without interruption by the platform or a third-party. Among many DEX, Uniswap has always had an outstanding performance as it records higher gains and more traffic on its platform. Statistics show that the platform recently hit a $100 billion cumulative trading volume since its creation in 2020.
Uniswap hits $100 billion in total volumes
Creators launched the platform around May 2020, and it has been performing impressively. Experts explain that the platform has had around 11 billion in trading volumes every month to achieve this feat through some calculations. The platform has a feature, which attracts many crypto enthusiasts, and that it’s the ability to swap ECR20 tokens.
Several DeFi projects have made the ECR20 tokens a known element in the digital asset industry, and it runs on the ETH network. Interestingly, some sources claim that the increased DeFi projects on the Ethereum blockchain caused the gas fee hike, which is likely due to the traffic coming into the platform.
Some notable investors are interested in exploring some opportunities the new sector brings to the space, resulting in more money coming into the sector. Uniswap’s creator, Hayden Adams, excitedly shared the information through a tweet. Adams saw the feat as an exciting milestone for the industry.
DeFi as a whole is also increasing, even with the several controversies that came when the platform. The industry’s growth led to exposure and publicity for new platforms like the DEX. The exposure led to its native token’s rise to the top valuable cryptocurrencies within a short while.
UNI hits over $6 billion in market cap
The UNI token also gives powers to those who hold it as a governance token. Governance tokens allow holders to take part in decision-making. The token alone has a market cap of over $6 billion, meaning that many people want to make decisions regarding the protocol actively.
There is a recent increase in Uniswap’s use, as cryptocurrencies have become a highly attractive investment for both retail and institutional investors. Many investors have invested millions in the protocol, with almost $4 billion locked regarding smart contracts.
Now, demands are increasing as transactions skyrocket within and outside Uniswap. Investors want more DeFi projects, causing the readiness to leave their money locked into the numerous protocols. Many projects are also run on the Ethereum blockchain, which makes the platform harder to use with higher transaction fees and scalability issues.
Fortunately, the creators assured the crypto space that the ETH 2.0 would launch soon, as experts are still working on it. DEX tokens are also growing in value, with many in the top 30 largest regarding market cap.
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