Uniswap’s daily volume has just managed to overtake Coinbase by more than $800 million as the DEX doubters are in disbelief of the huge, meteoric growth so let’s read more in today’s Coinbase news.
Uniswap’s daily volume records a new high, making it the first DEX to record higher trading volumes than Coinbase, as the volume is a direct byproduct of the incentive of the DEX arbitrageurs. Uniswap could lose the market share to a competitor but this will unlikely happen in the near future. The 24-hour trading volume of $479 million outpaced Coinbase’s $397 million which is the first instance of a decentralized exchange that facilitates more volume than the major crypto exchange Coinbase. DeFi’s most liquid DEX has traded 21% more value than Coinbase in the past day.
Coinbase hit a value of $8 billion while the DeFi alternative raised an $11 million Series A investment so this is a huge deal in the ecosystem to surpass one of the largest exchanges in the industry. Critics hit back by saying that most of the trading volume came from questionable tokens but the data indicates otherwise. DeFi shows no signs of slowing down and the trading volume of Uniswap goes along with it, while the automated market maker niche is getting even more competitive.
Dodo, Mooniswap, and other competitors popped up in the past month as well and while liquidity is starting to fragment the market players, most traders refuse to leave Uniswap. Speculators prefer It because almost every new DeFi project releases its token on the platform and even Sushiswap launched a new token recently. The dynamic and the lucrative incentive mode for liquidity providers gave the DEX a huge advantage over competitors.
Mooniswap changed its algorithms to enhance the LP profits at the expense of the arbitrageurs but this didn’t play out yet. The returns of Uniswap to LPs are superior to Mooniswap on each pool which is a result of higher fee revenue for LPs. The profit-focused LPs will favor Uniswap over the other platforms because they get more for the buck. Other AMMs could even implement shrewd incentives schemes to bring more traders and volume to their platforms. Until then, Uniswap remains the undisputed champion of the space.
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