- Decentralized exchange Uniswap allows anyone to swap ECR20 tokens.
- Today it became the first DEX to process over $100 billion in volume.
- The exchange’s popularity has exploded since it launched last year.
Decentralized exchange (DEX) today became the first decentralized trading platform to process over $100 billion in cumulative volume. The exchange, which launched last May, has racked up on average $11.1 billion in trading volume every month.
Uniswap allows users to swap ECR20 tokens. ERC20 tokens run on the Ethereum blockchain and are super popular in the crypto world because decentralized finance projects—which are mostly built on Ethereum—are attracting more attention from investors than ever before.
The DEX’s creator, Hayden Adams, shared the news on Twitter where he described it as “an exciting milestone for DeFi.”
Uniswap exploded with popularity during the Decentralized Finance explosion of 2020. Since then, its native token UNI has landed in the top 20 cryptocurrencies by market cap. UNI is a governance token, meaning those who hold it can take part in determining how the protocol is run.
UNI’s market cap is currently $6.3 billion.
People are obviously using the Uniswap exchange like crazy. The DEX has over $3.9 billion locked into its smart contracts. Today’s milestone shows that it is processing more transactions than ever before.
Why? More and more projects are being built on Ethereum and therefore more ERC20 tokens (tokens that run on the Ethereum blockchain) are being produced.
In fact, many are now in the top 30 cryptocurrencies by market cap—meaning more people will want to deal with them to make money.
Swapping them couldn’t be easier with Uniswap. The exchange has an easy-to-use interface and anyone can sign up. There are no background checks or know your customer (KYC) protocols like, say, with Coinbase.
This all contributes to the DEX’s monster trading volume.