Uniswap Hits A Major Milestone, Surpassing $50 Billion in Volume Since Launch

Popular decentralized exchange (DEX) Uniswap has achieved a significant milestone. The project has done more than $50 billion in volume since its launch in November 2018. This volume is split across 26,000 unique trading pairs.

Uniswap creator Hayden Adams took to Twitter to share this milestone with the community stating, “Just need to do this 19 more times to hit 1 trillion.” While the first $50 billion took two years for Uniswap protocol to hit, the community is super bullish and expects a 20x growth by just next year.

In the Twitter poll conducted by Adams about “When will Uniswap hit $1,000,000,000,000 cumulative volume?” almost half of the 1,397 votes expect it to be next year. However, getting 12 zeroes won’t be that fast. He noted,

“If you extrapolate from last 3 months (~$10B/month) with no growth it would hit $1T in 8 years. So def requires significant growth.”

This week DoorDash is a perfect example of what’s wrong with IPOs 💡

DoorDash gave $0 to its restaurants, drivers or users.

meanwhile, Uniswap gave away $500,000,000+ to their users

How does crypto fix it? Thread 🧵⤵️

— Alex Masmej (@AlexMasmej) December 10, 2020

What works in Uniswap’s favor is that it is the dominant force in the DeFi space, growing at a fast pace and will only gain speed.

Uniswap accounts for 58.4% of the total DEX volume at $2.3 billion in the last 7-days, as per Dune Analytics.

No one even comes close to Uniswap, in terms of volume. 0x is at the second spot but with only 13.6% market share. As for the number of traders, Uniswap’s 100,820 beats SushiSwap at second position with 3,420 and at third position Kyber’s 1,666, by a wide margin.

DEXs were one of the focus points of 2020, which saw immense growth. From $495 million as the highest ever volume of 2019 set in December, this year’s peak performance came in September when total DEX volume reached over $28 billion.

As we reported, Uniswap even beat the popular centralized exchanges like Coinbase, Kraken, and Gemini this year in daily volume.

From #CeFi to #DeFi in one picture.

The amount of fees on #Ethereum spent on $ETH deposits to centralized exchanges has fallen from ~25% in 2017 to less than 1% today.

Almost all fees spent on txs involving centralized exchanges in the past months were used for ETH withdrawals. pic.twitter.com/nvzGcwgxcC

— glassnode (@glassnode) December 11, 2020

For now, Uniswap’s TVL is around $1.36 billion, down from $3 billion a month back, when it became the first project to hit even this milestone. The amount of ETH locked in the protocol is also down from 3.68 million ETH ATH to just over 1 million ETH. The same downtrend is seen in BTC and DAI, currently at 4.75k and 84 million, respectively.

Interestingly, Uniswap is also the project that has been spending the most on gas fees on the Ethereum network. For several months now, the DEX has been at the top of the gas guzzler list, spending $12.7 million in gas in just the last 30 days, followed by Tether USD.

“$420k/day gas is spent trading on Uniswap. This puts us on pace for $150M/year just in gas fees,” noted Adams in a separate tweet.

This directly benefits Ethereum miners who have been raking in millions in fees and, of course, Uniswap LPs that are “making about $350M/year in fees.”