Uniswap announces reaching $1trn lifetime trading volume

By Raffaele Redi

Decentralised finance protocol has onboarded 3.8 million users to its ecosystem since 2018

Decentralised trading protocol Uniswap has reached a cumulative trading volume of $1trn since launching on the Ethereum blockchain in November 2018.

In a tweet, the network claimed it has onboarded around 3.8 million users over the past three years – putting it in reach of the majority of decenetralised finance (DeFI) users.

“As of today, the Uniswap Protocol has passed a lifetime cumulative trading volume of $1trn,” said UniSwap. “Over the past three years, the protocol has onboarded millions of users to the world of DeFi, introduced fair and permissionless trading and lowered the barrier to liquidity provision.”

Uniswap’s market dominance

As part of the Twitter announcements, the automated market maker (AMM) protocol reported a substantial market share – around 70% – of the total decentralised exchanges market.

Uniswap claimed in a blog post published earlier this month on Medium.com that it “gained dominance over traditional forms of central limit order books in providing a trading venue for deep liquidity in digital assets”. It added: “As more passive and diverse capital sources are unlocked through decentralised AMMs, market liquidity and efficiency will likely continue to deepen beyond traditional limit order books.”

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UNI hit its record low

However, Uniswap’s governance token UNI does not seem to reflect this dominant position in its trading price.

Despite the protocol witnessing its total value locked (TVL) rising from $137.39m on 5 May 2021 to $3.97bn on 25 May 2022, the current return on investment as of 25 May 2022 for UNI – according to data from Messari.io – stands at -36%.

As of 15:40 BST (UTC +1) today, according to CoinMarketCap. the Uniswap (UNI) trading volume was around $179m, down 19% over the previous 24 hours, and its market cap was just over $4bn. UNI was changing hands at $5.64 – down 87% since its all-time high of $44.97 on 3 May 2021.

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