As the decentralized exchange landscape keeps growing and evolving, more and more people will experiment with the different trading options. Any project looking to rival Uniswap will face a tough challenge. More specifically, the leading DEX noted over $6 billion in daily trading volume a few days ago.
Uniswap Keeps Raising The Bar
It is interesting to keep an eye on the many decentralized exchanges on the market today. Although more and more platforms come to fruition, finding one that may pose a significant challenge to Uniswap remains challenging. In fact, the world’s leading DEX continues to increase its dominance in this segment, although no one really knows the reason behind it.
As all DEXes combine for $17 billion in trading volume over the past week, there is plenty of daily activity to take note of. With an average of over $2.3 billion in volume per day, the decentralized exchanges of this outperform many smaller centralized trading platforms. Not entirely surprising, as there are many benefits to trading on a DEX. Retaining control of one’s own funds is a significant selling point.
What is interesting is how Uniswap continues to set new records for the trading volume. Two days ago, the platform recorded a spike of $6.578 billion in volume. A substantial number that no one can explain, as it seems to be a one-off deal. On most days, Uniswap has between $1 billion and $1.5 billion in volume. Seeing that figure increase more than fourfold is highly unusual.
Unfortunately, this growth spike does not affect any other decentralized exchange. All of the “competitors” continue to do their own thing and note regular volumes, for some reason. As such, nearly 75% of all DEX trades in the past week occurred through Uniswap, further illustrating this platform’s dominance. Sushiswap remains in second place, ahead of Curve, 0x, and Bancor.
Aggregator Volume Starts Taking Root
One aspect that will benefit the many decentralized exchanges is how aggregators can provide more trading volume. An aggregator will often pool liquidity from different [de]centralized sources to provide the most optimal trading experience and lowest slippage. Although the list of aggregators is far from complete, it paints an interesting picture.
Solutions such as 1Inch, the 0x API, and Matcha can provide a valuable user experience. Making the trading of cryptocurrencies more straightforward and accessible will benefit everyone, including the service providers. As the aggregator volume sits at $1.6 billion in the past seven days, things are getting very interesting in the DEX space, including for Uniswap.
More specifically, this means nearly 10% of the current decentralized exchange trading volume originates from aggregators. If that number keeps increasing over the coming months, it is a matter of time until DEXes surpass $20 billion in weekly volume and more. Slowly but surely, more people acknowledge the potential of decentralized trading.