Uniswap, the largest Ethereum-based decentralized exchange platform with no order book, has exceeded $3 billion in locked crypto assets. The platform managed some $2 billion in trading volumes yesterday, but it is not clear if it was a glitch or anything to do with yesterday’s hack of Harvest Finance. Now, the exchange handles a quarter of a billion in trading volumes each day.
Trading pairs have inflated to almost 20,000, a doubling since a few weeks ago. This now earns over half a million a day in fees, which head to liquidity providers and soon enough to the UNI token holders. UNI’s price has dropped significantly from the high of $7 to $2.84, but it is curious that it managed to keep this near $3 price for some time.
This implies a floor perhaps has been found for this still new token and a fresh business model where the public owns and controls this fully decentralized and entirely code-based exchange.
Uniswap is Now a Towering Giant
Because of its decentralized form, any regulatory conditions, especially under the Securities Act 1933, can not apply as the DeFi application has no one responsible for imposing something because it is just a smart contract code that can be easily forked.
Some of this remarkable rise may also be because of that, more so as Uniswap was a small DApp that hardly had some millions and some trading pair on it early this year, and now it is basically a towering giant, exceeding any exchange when it comes to the vastness of trading pairs.
Users can add any trading pair on the platform, which explains the wide variety and the steadiness of crowdsource input. This makes Uniswap the Wikipedia of exchange platforms, but better because there are no entities to control it, to ban users or block them, in comparison to the centralized Wikipedia.
