Uniswap Becomes the First DeFi Project to Surpass $3 Billion in Total Value Locked (TVL)


DeFi degens seem to be back.

In the past week, AAVE (165%), YFI (108%), CRV (75%), RUNE (70%), and SNX (68%) have recorded considerable gains.

Because “the liquidity in DeFi is simply not big enough to accommodate all of them. Hence the massive high-volume V-shaped recovery,” noted quant trader Qiao Wang.

“Most of the tokenomics for DeFi protocols have been built on farming, or pure degenerate gambling tendencies. Their longevity was questioned from birth,” said Vishal Shah, founder, and chief executive of Alpha5, a crypto derivatives exchange.

But he also thinks that “DeFi will have its place, in due time, in a more tempered version.”

In the meantime, the prices are spiking as Bitcoin taking a breather after a strong run-up these last few weeks have turned out to be good for altcoins, especially the DeFi tokens.

“Many of the DeFi degens that disappeared from CT the past 2 months to catch up on sleep seem to have returned….and with a vengeance. That is the surest sign that we are heading into the next leg of the DeFi wave,” said a partner of the crypto fund, The Spartan Group.

DeFi is showing the signs of life, as evident in the transaction count of Yearn.Finance whose transactions were declining over the last few months only to hit a new all-time high of 11.3k this past weekend. YFI price is currently at $17,300, which is up 109% over the last 7 days.

The gains have the total value locked (TVL) in DeFi climbing to a new all-time high of $13 billion, as per DeFi Pulse.

Amidst this, the top DeFi project, popular DEX Uniswap, has become the first to hit $3 billion in TVL.

At the beginning of 2020, Uniswap had just under $12 million of TVL. This immense growth started when the DeFi craze went in full swing this year in July when the TVL was around $45 million. In mid-September, the numbers went berserk and increased by 650%.

This growth is primarily due to the jump in prices as the number of ETH locked in the project at 3.27 million is still a bit away from the peak of 3.7 ETH, the same as DAI at 20 million with BTC just under 32k.

Meanwhile, its token UNI is trading above $3, with 54% gains in the past week — making it the 31st largest cryptocurrency by market cap of $658 billion.

This month, Uniswap celebrated its 2nd anniversary and saw its trading volume in the week hitting $4 billion, up from a mere $17k traded in its first week.

Decentralized exchanges have been gaining a lot of traction lately, even beating the top centralized exchanges like Coinbase in terms of volume.

In Oct. DEX volumes were down 27% from the record-breaking Sept. Still, they had a solid session at $19 billion, up 66% from August. Notably, $5 billion was traded in one day, on Oct. 26th, driven by the Harvest Finance hack.

Uniswap accounts for 64% of all the DEX volume and dominates 23.13% of all the DeFi sector.

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