The world’s most popular decentralized exchange, Uniswap, has hit a milestone for cumulative trade volume as it tops a hundred billion dollars.
As noted by founder Hayden Adams, this achievement by Uniswap has been a big milestone for DeFi as it becomes the first decentralized protocol to process $100 billion.
Trading volume on the automated market maker really started to ramp up in the third quarter of 2020 with the DeFi boom and cloning frenzy.
SushiSwap was a huge catalyst being a Uniswap clone but offering better rewards for its liquidity provider tokens. Uniswap then launched its own yield farms in September as volumes and liquidity continued upwards.
— Hayden Adams 🦄 (@haydenzadams) February 15, 2021
Today, Uniswap processes around $975 million in daily volume, according to the protocol’s analytics dashboard. The week of February 7 to 13 saw its highest ever with $7.1 billion processed for the seven-day period.
Liquidity, according to the platform, is also hovering around its highest ever levels of $4.45 billion. DeFi Pulse reports it slightly lower at $4 billion while DappRadar is reporting closer to $5 billion.
Daily DeFi Fees Surging
The massive surge in trading volume and liquidity is generating a lot in terms of fees for Uniswap. According to CryptoFees, the DEX is the third highest in fee generation after Ethereum and Bitcoin with $3.4 million.
At the moment, there are no token yield farming incentives on Uniswap, so a portion of those fees are distributed to liquidity providers for token swap pairs.
Ethereum is the highest earner in terms of fees, which are around $25 million per day at the moment. This is no surprise with average gas fees at a record high of around $20 as the asset hovers close to its all-time high.
UNI Token Price Update
The big boom in Uniswap activity has done wonders for its native governance token, UNI. The token is trading at $20.15 at the time of publication.
UNI hit an all-time high on Saturday, February 13, of $23.40, according to Coingecko. It has made a gain of 300% since the beginning of 2021 when it was trading just below $5.
UNI is now ranked 15th in terms of market capitalization, which is a little over $6 billion. There are currently 300 million tokens circulating out of a maximum supply of a billion.
It is likely that UNI will increase in price when the long-awaited Uniswap v3 is rolled out and, with it, the possibility of more yield earning incentives.
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