Uniswap and SushiSwap Attract Users During Market Volatility, Registering Record Volumes
Fees also skyrocketed, of course, but despite this, there is “high demand” to use the Ethereum network and the decentralized platforms.
It wasn’t only the centralized exchanges that recorded high volumes as the market saw tons of volatility; decentralized exchanges (DEX) were just as busy, if not more.
In the past 24 hours, the real volume on CEXs was about $20 billion, while DEXs recorded just under $5 billion in volume.
Spot and options 2nd most active session after 11th of January pic.twitter.com/ZXaadrPfe2
— skew (@skewdotcom) February 24, 2021
According to Uniswap.info, the dominant DEX had its second-largest daily volume ever. The record was $2.19 billion on October 26, around the peak of the DeFi summer and yield farming mania.
Sushiswap had its highest volume of $1.26 billion on Tuesday, as per Sushiswap.vision.
Much like the volume, the fees skyrocketed. Uniswap, the biggest gas guzzler on the Ethereum network, recorded $5.5 million in fees.
This was the direct result of heightened activity on the Ethereum network that resulted in the average transaction fees soaring to a record $50 yesterday, but it is now back at about $18.
High transaction fees led to a new round of talks around potential Ethereum killers. This time we saw Binance Smart Chain leading the discussion, operated by the centralized exchange Binance.
BSC is compatible with the Ethereum Virtual Machine (EVM), and fees much lower than Ethereum, which has been attracting users amidst the ongoing craziness.
“But low fees come at a cost; the Binance Smart Chain is inherently more centralized than Ethereum due to the control exerted by Binance,” said Coin Metrics.
Interestingly, despite the high fees, no noticeable drop in ETH daily active addresses have been seen. In fact, Ethereum usage remains near all-time highs, 600k, “which shows the high demand to use the network.”