Prominent decentralized exchange Uniswap has surpassed the figure of $50 billion in all-time trading volume. It is a big achievement for the leading DEX, which shows incoming high funding from investors.
26k Trading Pairs
Hayden Adams, the founder of Uniswap, shared data with his followers revealing that the lifetime volume of the leading decentralized exchange has reached more than $51 billion. He further explained that the reported trading volume is “split across 26,000 unique trading pairs.” It can be reached to $1 trillion if the same volume repeats 19 times.
Few members of the crypto community have expressed their disbelief over this and claim the illegal means are a source of Uniswap’s liquidity as there is no availability of Know Your Customer (KYC).
A crypto-inspired Twitter user claimed most of Uniswap’s volume comes from money laundering, darknet sources, and wash-trading.
It was reported in September 2020 that the famous crypto exchange KuCoin hacked, which resulted in a loss of $200 million in cryptocurrency. The hacker of KuCoin transferred $1.2 million in SNX to Uniswap.
On May 18, the V2 iteration launched on May 18, which pumped the volume to a great extent as the volume was at $36.5 million at the time, but the current trading volume is standing at $1.37 billion.
Uniswap’s trading volume is the highest in the DEX market besides tough competition from other decentralized crypto exchanges. Based on the data provided by Dune Analytics, Uniswap dominates the weekly DEX volume with 59.5%, and on the other hand, 0x and SushiSwap represent 12.9% and 11%, respectively.
Uniswap also the number one exchange in terms of traders’ numbers as 101,000 addresses was attached with the decentralized platform in the last week. Sushiswap comes at second position with 3,392 unique addresses.
Another decentralized project DEX Polkaswap is also set to release next year that may also challenge Uniswap in daily trading volume.
Need for Strong KYC in DeFi Sector
The DeFi space is known for its weak KYC, which makes it vulnerable to illicit activities, such as money laundering. There is a need for strong KYC as the total locked value over the Ethereum network has reached a total of $13 billion. According to Gunnar Jaerv, COO of First Digital Trust:
“All DeFi platforms should be at least thinking about this, should be thinking about KYC and should be thinking about transaction monitoring and all of that, how to make it easier while still maintaining that balance and keeping sort of the ethos of the whole blockchain and the anonymity and all of that, not compromising it.”