Less than two days after its launch, the Uniswaps’ trading volume has already exceeded the trading volume of many cryptocurrencies on crypto exchanges, with only four major cryptocurrencies ahead. Based on data from CoinGenko, Unisawp’s 24-hour trading volume is $4.7 billion. This means it’s only behind Ethereum (12.7 billion), Bitcoin (20.7 billion), Tether ($38.9 billion), and Tether ($38.9 billion).
With this growth in a very short time, it means Uniswap is setting the pace when it comes to Defi platforms.
UNI’s extra incentives surge growth
The new governance token of Uniswap was released on Wednesday as a response to clone/competitor SushiSwap. Although it can do all the things like Uniswap, there is an additional incentive for UNI, as it distributes SUSHI token to offer a reward to network users.
UNI’s present trading volumes have skyrocketed, which has surprised many observers in the market. However, since liquidity providers now have governance privileges, the UNI tokens have now become important commodities themselves.
The newness of the token is probably the reason for the initial high trading volumes, as some traders chose to exchange 400 UNI they got as network participants. Many of them sold their UNI tokens at $1,200, which has led to massive movements across the exchange platforms. Another contributor to the relevance of the UNI is the massive number of buyers, which has pushed the price up.
Uniswap still far behind top cryptocurrencies
Even with the massive trading volume of Uniwsap UNI token, it still doesn’t have the type of reputation Bitcoin has. Also, it doesn’t have the dominance of Tether or Ethereum’s iniquitousness, the platform that runs the UINI token. Some numbers provide evidence to the above reality. When it comes to market cap, Ethereum, Bitcoin, and Tether are the top cryptocurrencies.
However, UNI’s market cap is still far below these three, with its $654 million market cap only good to pick a spot in the top 40, even below Defi competitors like Dai, Aave, and yearn.finance.
However, the fact that the UNI’s token is still fresh speaks volumes on the coin’s growth potentials. There is a high chance of UNI rising through the market cap with its present performance in the market.
Uniswap also tops all DeFi protocols for total locked value
Before the launch of UNI, the total locked value of Uniswap stood at $750 million. But right now, the value has more than doubled to around $1.6 billion. This means within a short space of time it has overtaken Aave in the metric.
Historically, users have embraced decentralized platforms that enable them to earn protocol tokens and interests in exchange for using their digital assets as collateral. But time will tell whether the current momentum with UNI token will be a sustainable one.
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