Uniswap’s decentralized cryptocurrency exchange, or DEX, continues to gain popularity. The trading platform has now processed more than $ 10 billion in weekly trades for the first time. Founder Hayden Adams reports this on April 20.
It’s an increase of 26% from the week before. Uniswap is a DEX on the Ethereum (ETH) network that makes it possible to trade in ERC-20 tokens without the need for an intermediary. It is especially popular for decentralized finance (DeFi) tokens.
So Uniswap continues to do well, despite the rising transaction costs on Ethereum. Last week the Berlin hard fork took place on Ethereum, but it looks like this update has not been able to bring down transaction costs. According to data from YCharts, the average transaction costs rose to a whopping $ 31.75 on April 20.
We see the competition catching up. Especially PancakeSwap on the Binance Smart Chain (BSC) is rapidly increasing in popularity. The platform now sees a higher trading volume than Uniswap and also in terms of locked value, or total value locked (TVL), PancakeSwap is now the largest platform. PancakeSwap does receive a lot of criticism because of the high degree of centralization on BSC, causing some people to say that it is not a real DEX.
In related news, Uniswap Labs announced on April 21 that smart contracts for version 3 of Uniswap have been launched on all Ethereum test networks: Ropsten, Rinkeby, Kovan and Goerli.
Uniswap V3 is expected to launch May 5 and should also slightly lower transaction fees on the platform. The arrival of Optimism, a layer-2 solution for Ethereum, could dramatically reduce costs on Uniswap, but the launch was recently delayed to the summer.
Last month, a Uniswap V3 non-fungible token (NFT) sold for over half a million.