Ethereum As one of the leading names in the cryptoworld, Uniswap is setting new benchmarks for decentralized exchanges.
Token Terminal noted on September 9th that Uniswap's monthly earnings from fees in September have surpassed achievements made in August 2020, with just two weeks in.
We’re one week into September, and @UniswapProtocol Uniswap's income has already exceeded the total fees garnered in August. pic.twitter.com/SUvUtnaNm1
— Token Terminal (@tokenterminal) September 9, 2020
Uniswap's rise in revenue is a result of its dominance in trading volume this summer, breaking records for monthly volumes three months in a row.
- June 2020 ($452 million)
- July 2020 ($1.76 billion)
- August 2020 ($6.7 billion)
- September 2020 circa Sept. 9th ($6.5 billion)
Moreover, according to Token Terminal this volume growth has put Uniswap on pace to achieve $400 million in total fees paid on the year. That’s really impressive revenue for a young and rising DeFi project, no matter how you slice it.
This momentum has placed Uniswap on the path to challenging centralized exchanges for prominence in the long term. For example:
- On August 29th, Uniswap's daily trading surged to $426 million, overtaking the 24-hour volume of Coinbase, a major U.S. exchange, which stood at $348 million. first time ever .
- The trading pair of ETH/SUSHI on Uniswap generated a volume of over $175 million on August 31st, surpassing the collective totals of several centralized platforms. Bitstamp, Bittrex, and Poloniex in the same span.
The rapid rise of Uniswap as a favored venue for various token trades underscores its potential to eclipse centralized, regulated exchanges.
If the financial future leans towards open, protocol-driven systems, Uniswap offers a peek into what that might entail.
Going Beast Mode
In recent times, Uniswap has not only seen its trading volumes spike but also other indicators are on the rise.
- The influx of traffic to uniswap.exchange has been described as extraordinary. mooning ” this summer.
- In July 2020, the decentralized platform welcomed nearly 60,000 fresh users.
- 162,000 unique addresses In August 2020, user interaction on the exchange hit record numbers.
- Uniswap temporarily became the largest DeFi project By September 3rd, Uniswap was managing assets worth $1.77 billion.
These milestones have followed the launch of the enhanced Uniswap V2 in May, with the upcoming V3 poised to make even more waves.
However, the beloved DeFi platform has faced its challenges recently too.
Attack of the Vampire
Functioning as an automated market maker (AMM), Uniswap allows users to deposit tokens, becoming liquidity providers with the potential to share in trading fee profits.
Late in August, a platform called Sushiswap appeared, tempting Uniswap's liquidity providers with SUSHI token incentives, an event labeled a 'Vampire Attack' due to its strategy of siphoning liquidity.
Despite Sushiswap's entry, its pseudonymous founder Chef Nomi caused a stir by cashing in a large sum of SUSHI tokens for ETH, worth $13 million, after promising otherwise.
Chef Nomi's actions marred Sushiswap's reputation, but eventually, control shifted to Sam Bankman-Fried, CEO of FTX.
As of September 9th, Sushiswap began transitioning to a new setup, rapidly decreasing Uniswap's locked value from $1.43 billion to $409 million, reigniting talks of Uniswap introducing its own token to incentivize liquidity providers.
