Uniswap is now the first decentralized exchange to surpass $1 billion in 24-hour trade volume. This is a result of an increase in yield farming and ‘vampire attacks’. According to a Cointelegraph report, CoinGecko now ranks Uniswap above major centralized platforms. These centralized platforms include Coinbase Pro, Bitfinex, and Huobi Global.
In addition to the effect of the yield farming on Uniswap, the decentralized exchange has become the highest decentralized finance (DeFi) protocol by locked funds. A DefiPulse analysis revealed that Uniswap has $1.68 billion in locked funds and 2.3 million Ethereum locked.
Similarly, the TRON-based decentralized trading protocol, JustSwap, recently became the second-largest decentralized exchange with over $208,000 in daily trade. This represents an 11.1% market share by volume. Tron founder Justin Sun commented on the new achievement in a tweet.
Despite Uniswap’s recent development, analysts are predicting that Uniswap may not enjoy growth for a long time. According to the analysts, Uniswap rivals are offering extreme incentives to yield farmers to stake LP tokens on their own platforms. For example, SushiSwap has already gained $1,47 billion in locked funds through migration mining, popularly referred to as “vampire attack.”
Also, Uniswap may also be challenged with competitions from decentralized exchanges looking out for tokens of rival networks.
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