UNI Becomes the First DeFi Token to Join the Top 10 Cryptocurrencies
Uniswap dominates almost 50% of the DEX volume market share and is recording an aggregated volume of $60.7 billion in 2021, so far. Meanwhile, the $17.35 billion market cap coin is busy making new highs.
For the first time, a decentralized finance (DeFi) token has made it to the top 10 cryptocurrencies. Decentralized exchange (DEX) Uniswap’s native token UNI is the one to climb up the ranks as the price continues to hit new all-time highs (ATH).
Over the weekend, UNI's price surged to $34.75, up 3,113% from its all-time low of $1.03 in mid-September. Currently, trading above $33 has put the token market cap to $17.35 billion, becoming the 8th largest cryptocurrency.
Uniswap is the leading DEX, dominating nearly 50% of the DEX volume market share, registering a record $32.1 billion in volume in February, up from $26.3 billion in the previous month. The aggregated volume on Uniswap in 2021 has reached $60.7 billion, with a daily average of $920 million, as per IntoTheBlock.
While UNI has made it to the top 10 cryptos, other DeFi tokens are also trailing behind but slowly. Wrapped Bitcoin (WBTC) is the next DeFi token in line, currently at 15th place with a market cap of $6.45 billion, followed by lending protocol AAVE at 17th spot with a $5 billion market cap.
Down at 28th place, we have Solana (SOL) of $3.5 billion, Synthetix (SNX) at 38th place with $2.43 billion, and with about $2.2 billion market cap SUSHI and COMP at 41st and 42nd place, respectively.
The DeFi space currently has $38.7 billion in total value locked (TVL), down from the record $45.5 billion in late Feb. Quiao Wang of DeFi Alliance said,
“Despite billions of dollars of TVL, DeFi is still very much a sandbox. A relatively expensive toy for relatively wealthy people. A proof of concept for something much much bigger to come.”
According to him, DeFi is the future of finance because of its UX, user experience. “If a product offers a better experience, users will switch,” he added.
As for all the criticism about high fees, high latency, and low throughout, these tech problems are solvable and “not fundamentally different from how the Internet continued to scale over the last few decades.”
“DeFi is the natural progression of Bitcoin. It’s simply about a user-controlled, frictionless way to do more things with this ‘value,”’ Wang said. Virtually all DeFi platforms are proof of concepts still.