​​​​​​​Ethereum DEX Processing 1/3 Volume of Coinbase Shows Highly Optimistic Trend

Saturday 8 August 2020, 8:10 AM AEST - 6 days ago

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Uniswap, a decentralized exchange (DEX) on Ethereum, has processed more than one-thirds of Coinbases daily volume.

According to Qiao Wang, a crypto quant trader, Uniswap recorded a $126 million daily trading volume in the past 24 hours.

He said:

Uniswap did $126M volume last 24 hours. This is 1/3 of Coinbase. 1/2 of Kraken. More than Gemini, Polo, and Binance US combined. Pretty incredible TBH.

The demand around decentralized finance (DeFi) appears to have triggered a significant increase in the daily volume of Uniswap.

article imageThe daily trading volume of Ethereum-based DEX Uniswap hits $126 million at its peak. Source:


Why is Uniswap Volume Increasing, and Why is it a Good Thing For Ethereum?

Ethereum enthusiasts have long touted DEXes as the future of the cryptocurrency exchange market. They carry the philosophy of decentralization and allow users to trade without intermediaries.

The two major problems of DEXes have always been a lack of liquidity and inefficient user experience.

Since centralized exchanges, like Coinbase and Binance, process nearly a billion dollars every day in volume, there is a gap in liquidity.

Wang noted:

And two years ago I wrote about why Uniswap would not be nearly as active as centralized exchanges even if we gave it 10 years. Well I don't think I've ever been that wrong in my life.

Also, DEXes are based on public blockchain networks, including Ethereum. That means smart contracts process data, and when the network clogs, it could cause inefficiencies.

Uniswap has become more compelling to users in recent weeks because of the accessibility to tokens.

Traders on centralized exchanges have to wait until the exchanges list a specific token to trade it. On Uniswap or other DEXes, users operate liquidity pools and market makers. Hence, tokens are usually traded on Uniswap first over ot ...

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