There are always developments taking place behind the scenes of decentralized finance. Comparing the TVL between Uniswap and Sushiswap shows the gap is tightening. Additionally, the total value locked in Ethereum DeFi has surpassed $41 billion.
Uniswap and Sushiswap Remain Competitors
The past 12 months have proven rather interesting for decentralized exchanges, or DEXes. Despite the concept being around for a few years, none of the early platforms note any significant growth to date. It was until Uniswap came around that things got a lot more exciting for many different reasons. Their business model works and inspires others to improve upon it.
One of the teams borrowing some ideas from Uniswap is Sushiswap. Despite the project having some PR issues initially, all of these concerns are a thing of the past. More often than not, a developer takeover doesn’t bode well for the public perception of projects. In Sushiswap’s case, things have fallen into place in the end.
Based on the current statistics, both DEXes perform rather well. Uniswap still has a slightly higher total value locked than Sushiswap, at $4.01 billion compared to $3.73 billion. It may be a matter of time until the gap tightens even further, which will benefit all users. Competition is healthy in the world of decentralization, as there are always aspects to improve.
Comparing the trading volume of the different platforms, things look pretty impressive as well. Uniswap has a current 24-hour volume of $1.01 billion, which is more than respectable. Sushiswap, on the other hand, has $401.807 million in 24-hour volume. The gap may seem steep, but that isn’t necessarily an issue. Slow and steady growth in liquidity will improve the trading volume sooner or later.
Ethereum DeFi TVL Hits A New Milestone
During times like these, it is pertinent to look at the much bigger picture in the industry. Decentralized finance attracts a lot of attention, especially on the Ethereum blockchain. Even rising network fees do not diminish the growth curve all that much. It makes one wonder what may be possible once proper scaling is in place.
As Ethereum DeFi now has over $41 billion in total value locked, pushing for $50 billion is a matter of time. Forcing the change to happen is a different matter, as the top platforms keep growing bigger. It becomes all the more difficult for newcomers or smaller projects to gain any traction in this industry.
Even then, one has to wonder what the future will bring. Other blockchains make their mark on DeFi as well. Additionally, several cross-chain solutions are currently in development. Exciting things are bound to happen, and the existing projects will need to step up their game to maintain relevancy.