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Uniswap trading volume only tracks Bitcoin, Ethereum, Tether

In letters

  • Uniswap’s new token, UNI, has logged approximately $ 4.7 in trading volume over the past 24 hours.
  • Uniswap also tops all DeFi protocols in terms of total value locked, to $ 1.6 billion.
  • But UNI’s market value is still much smaller than larger coins and several DeFi competitors.

It did not even exist 48 hours ago, but Uniswap’s control token is already the fourth most traded token on cryptocurrency exchanges.

According to data from CoinGecko, UNI̵

7;s 24-hour trading volume is $ 4.7 billion, behind only Tether ($ 38.9 billion), Bitcoin ($ 20.7 billion) and Ethereum ($ 12.7 billion). It means Uniswap not only sets the pace among DeFi platforms, but that it runs with the established players throughout the crypto, at least for the time being.

UNI is a decentralized exchange of Uniswap’s new “control” token, released on Wednesday in a response to competitor / clone SushiSwap, which did the same as Uniswap with the added bonus of distributing its own SUSHI token as a reward to network users . Although they are obviously intended to provide board privileges to liquidity providers, such tokens have become valuable commodities themselves. Hence UNI’s current trading volumes.

September 18 trading volumes. Image: CoinGecko

To be sure, part of the initial trade can be explained by the tokens’ novelty, with some choosing to sell the 400 UNIs they received as network participants for $ 1200 or more. Nevertheless, there have also been many buyers who have pushed up the price.

Despite its current success, Uniswap’s UNI symbol does not have the established pedigree of Bitcoin, the first cryptocurrency; the market dominance of Tether, the original stablecoin; or Ethereum’s ubiquitous, blockchain on which the UNI token runs.

This is proved by some of the other figures. While Bitcoin, Ethereum and Tether are also top three in terms of market value, UNI’s market value is $ 654 million, which is good enough for a top 40 spot behind DeFi competitors who long for financing, Aave and Dai.

But it is not terrible far behind them and given Uniswap’s sudden rise in other variables, it may also rise through the market valuation.

Object A? TVL, or total value locked, a measure of the dollar value of all Ether and Ethereum-based tokens contained in a protocol smart contract. Although a controversial measure, it is often used as a yardstick to determine which DeFi products are catching the most attention right now.

Earlier this week, before launching UNI, Uniswap had about $ 750 million in total value locked. Today it has more than twice as much. Its $ 1.6 billion was enough to get over Aave for first place in the measured value, according to DeFi Pulse.

Again, however, historical figures are instructive, even if “historical” only means a few months in the new world of decentralized financing. Users have flocked to decentralized applications that allow them to earn interest and protocol money in exchange for setting up digital assets as collateral, transforming a $ 690 million market at the beginning of the year into a $ 9 billion market today.

In the volatile DeFi market, Aave has managed to remain remarkably stable and has a TVL over $ 1 billion since August 15. Only Maker has been there longer; it originally broke the $ 1 billion barrier on July 27 and is currently ranked third in TVL.

Uniswap’s decision to distribute board badges has really shaken up the young DeFi landscape, but it’s far too early to say whether UNI is a tourist or a permanent resident at the top of the crypto maps.

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