Uniswap (a popular DEX platform on Ethereum) celebrates a milestone. On its Twitter account, the official team behind the protocol revealed that the platform has reached $1 trillion in total trading volume.
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The metric, which is shown below, has been in an uptrend from September 2020. The protocol had a cumulative trade volume of less than $10 million at that point.
The $1 trillion milestone came in less than a decade after Uniswap processed approximately $250 billion of cumulative trading volume, bringing it to $750 Trillion in March 2022. This metric is on the rise, despite the downtrend in global markets.
The team behind Uniswap statedThese are the things:
It’s been one hell of a ride. As of today, the Uniswap Protocol has passed a lifetime cumulative trading volume of $1 Trillion (…). We couldn’t have reached this milestone without the Uniswap community that continues to build alongside us. Here’s to the next Trillion.
Additional data provided by the team behind the protocol suggest Uniswap’s popularity has been increasing along with its trading volume. The DEX’s market share surpassed 50% in August 2020 and has reached over 60% since that time.
In addition to this, Uniswap users have now reached almost 4,000,000. This metric was at 1,000,000 users in January 2021. It is an increase of 4x in just over a year. Hayden Adams was the original inventor of Uniswap. added:
All-time volume of $1 trillion. I don’t tweet milestones as often these days, but four commas blows my mind. It was never my intention for Uniswap’s growth to be as rapid. We are grateful to all who have been with us.
What’s Behind This Ethereum DEX Success?
There are three potential events that have resulted in Uniswap’s increase in market share and popularity. First, Uniswap v2 was deployed. It introduced new functionalities and features that were replicated throughout the DeFi sector.
The second was the launch of UNI, its governance token. The token rolled out around September 2020, when Uniswap’s fundamental began their upwards ascend, and it was airdropped to all users that ever interacted with the protocol.
This event was a turning point in DeFi protocol adoption. With the inclusion of non-fungible tokens, (NFTs), into mainstream commerce and increased adoption by more users, the sector boomed the next year.
The third event was the launch of DEX’s third iteration, Uniswap v3. The new version was more rewarding for active investors who used it.
Today, most blockchain networks can’t exist without a DeFi sector and their own version of Uniswap. Although it is popular, DEX and all other protocols are affected by current price movements across large cryptos.
According to data from Token Terminal, Uniswap reached its peak in September 2021 at close to $10 Billion. Its total value locked (TVL), and trading volume were both above that. Since then this metric has been declining and is now consolidating.
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At the time of writing, UNI’s price stands at $5.57 with a 5.5% loss in the last 24-hours.
