The Blockchain space continues to be one of the most investment spaces globally, as huge funds continue to exchange hands in the form of trade in the booming space. However, while the cryptocurrency market continues to be the most attractive ground for investors flocking into the space, the Decentralized Finance (DeFi) terrain is also one that has gotten the attention of investors and traders in the Blockchain space.
However, despite the DeFi sector being a much smaller space than the cryptocurrency market, the Decentralized Exchanges (DEXs) in the space like Uniswap have continued to be very successful, amidst amassing high investor’s interest.
Uniswap is a DEX like no other
According to data statistics from Uniswap, the Ethereum-based DEX has now recorded $10 billion worth of weekly transaction volume for the first time since its inception. Uniswap is a testament to the high performance of Ethereum-powered DeFis, who have remained successful despite several challenges.
The high gas fees being charged by the Ethereum Blockchain continues to be the only reason why the network is heavily criticized by many analysts, despite the network’s high speed and fast transaction processing. Like many other DEXs in the DeFi space, Uniswap allows its users to exchange their tokens without losing any portion of it to an external body. Since its inception, the Ethereum-based DEX has allowed its users to get a low-interest loan and earn mouth-watering rewards on their stakes.
Uniswap users have the eligibility to trade the Ethereum based ERC20 token and also the Uniswap-owned UNI token. The UNI holders are also eligible to participate in platform update voting and decision making, which, unfortunately, elude ERC 20 holders. Surprisingly, despite posting such high trading volume figures, the DEX is not the most attractive in the Ethereum DEX space; talk more about the entire DeFi space.
There is still a lot of work to be done
However, while Uniswap’s record-breaking $10 billion trading volume is commendable, there is still much work to be done. Sushiswap, 1inch, and Pancakeswap are some of the biggest competitors of Uniswap. Pancakeswap runs on the Binance Smart Chain network, and its traders are excited about that, as they will not have to pay the high gas fees of Etherum.
On the other hand, Sushiswap, 1inch, and many other DEXs continue to run their operation on the Ethereum DEX, taking full advantage of the Blockchain network’s offerings. Unfortunately, the low gas fee charges of Binance Smart Chain have now seen Pancakswap hit more trading volume in the last 24hours than any Ethereum based DEX.
However, the developers at Uniswap understand that they can not change customers’ preferences, especially as many customers will prefer a lower cost to high transaction speed. They have now resorted to launching a proposed Uniswap V#, which will go live next month, and is set to allow the DEX to remain competitive in the DEX space.