The increase in downsizing activity associated with SushiSwap and similar protocols has led Uniswap to become the first decentralized exchange (DEX) with 24-hour trading volume exceeding $ 1 billion.
According to encrypted data aggregator CoinGecko, Uniswap V2 is currently the third largest exchange with a normal trading volume of $ 1.02 billion in ERC-20 tokens sold on the last day.
CoinGecko ranks Uniswap just below Binance and OKEx, which are $ 6.25 billion and $ 1.10 billion daily, respectively. The decentralized exchange is now outperforming major central platforms like Coinbase Pro, Huobi Global, and Bitfinex.
The rise in the use of profitability has also led Uniswap to suddenly become the highest decentralized finance (DeFi) protocol through closed-end funds at $ 1.69 billion, accounting for 18.05% of the total value recorded in smart contracts for the sector. according to DeFi Pulse.
Defi Pulse has Uniswap first
However, analysts expect Uniswap’s dominance to be short-lived, as competing forks offer strong incentives for liquidity providers that have spread rapidly in recent weeks.
SushiSwap, Uniswap’s unaudited issue, raised $ 1.47 billion in closed-end funds through what many call a “vampire attack” designed to absorb Uniswap’s liquidity.
Competing platforms offer farmers strong incentives to get the rates of LP – tokens offered to liquidity providers on Uniswap – on their platform and migrate liquidity from the flagship DEX. As a result, LP tokens were withdrawn to SushiSwap, which currently accounts for over 72% of all money locked on Uniswap.
Sushi Swap isn’t the only platform looking to absorb Uniswap liquidity, with similar unconfirmed Uniswap forks like yuno.finance, Hotdogswap, pizzafinance, and Kimchi luring producers with estimated profits of sometimes over a million percent. Although it quickly gained attention, the original Hotdog token dropped from $ 4,000 to $ 1 just five minutes before that day.
Uniswap will also face increasing competition from decentralized exchanges targeting tokens from rival networks, including the future Polkaswap platform.
According to CoinGecko, the JustSwap (TRX) Tron platform has also recently become the second largest DEX with nearly $ 200K in daily trading. However, some analysts believe that JustSwap’s size may be overstated due to trade laundering, which artificially increases the rating.