Uniswap is the largest decentralized exchange in the cryptocurrency industry. It plays a prominent role for many digital assets, including various stablecoins. Interestingly, two stablecoins now note an all-time high liquidity on this DEX simultaneously.
BUSD Liquidity Spikes On Uniswap
Of the many currencies pegged to fiat currency these days, very few manage to live up to the appeal of Tether’s USDT. It is a very important asset in the cryptocurrency industry that is mainly used for trading. However, it is also pertinent in decentralized finance, increasing its overall popularity even further.
BUSD, a stablecoin issued on the Binance Smart Chain, is trying to make a bigger impact as well. one way of doing so is by noting a liquidity all-time high on Uniswap. A strong push has taken place in recent weeks to improve the overall liquidity on Uniswap lately. With an increase by over 100%, the current liquidity is at unprecedented levels for BUSD.
Interestingly enough, the majority of liquidity for BUSD can be found in other stablecoin pairs. Both BUSD-USDC and BUSD – USDT are popular today, although their volume may not be too significant. The BUSD-ETH pair, however, has very little liquidity and trading volume today. There is still a lot of work to be done before BUSD becomes a force to reckon with on Uniswap.
Even so, the ongoing increase in BUSD liquidity may be a sign of what is yet to come. Contrary to what people expect, the BUSD market cap has risen steadily to over $7 billion. There’s a lot of room for competition in the world of fiat-pegged currencies. Every asset has its own strengths and weaknesses, even on Uniswap.
USDC Liquidity Rises As Well
In a somewhat surprising turn of events, Uniswap notes another all-time high. The liquidity for USDC is also increasing rapidly lately. With an all-time high of $415.6 million, the overall volume is a lot higher compared to BUSD. In fact, it is almost 200 times as high, further confirming the popularity of this particular pegged currency.
Per Uniswap, the main trading pairs for USDC pertain to ETH, FRAX, USDC, BOND, and DAI. That is a bit different from other stablecoins, which are priamrily traded against other fiat-pegged currencies. USDC gains more momentum across the different markets on this decentralized exchange. Healthy competition among fiat currencies is crucial in this industry.
It remains unclear what the future will hold for the various stablecoins on Uniswap. Competing with Tether’s USDT will be very difficult, but nothing is impossible. As more liquidity becomes available, traders have more options to explore, which will always prove beneficial.