Uniswap, the decentralized exchange, is now the world’s fourth-largest exchange. It crosses several giant firms, which have a centralized financial system. The firm recently crossed the $20 billion thresholds and now aims for even higher marks. Its next target is to hit $25 billion next month. At the fourth biggest spot, it consistently earns more majority in market share among all the DeFi exchanges.
With this feat, it has taken over many other centralized exchanges, including Bitstamp, Bittrex, Gemini as well as Poloniex. Back in December last year, it crossed the 3,00,000 monthly users. This has increased the trade size of the company by ~$1,300, as per one resource. Uniswap is one of the several firms that is boosting Ethereum’s daily performance in the current crypto market.
Uniswap’s Performance On Ethereum Blockchain
Uniswap is one of the several firms that function on the blockchain by Ethereum. In terms of market capital, ETH’s parent remains the second largest, behind only bitcoin. The company, Uniswap, accounts for over 20% of the transactions that happen on the blockchain right now. To fight high gas fees, it uses a Layer2 solution, called Optimism. Chainlink, as well as Synthetix, also use OVM as their solution.
OVM by Optimism is an Ethereum mainnet. Uniswap provides scalability improvements. It also issues a liquidity provider’s loyal community. This helps in keeping low the slippage fees as well as trading costs. But back in 2020 November, the protocol witnessed a decline in liquidity. This was because of the liquidity program that ended on the very day.
Since Uniswap V2’s inception, according to the project’s creator, Hayden Adams, every 12 minutes, one trading pair is deployed. The Grants Program of the firm or UGP also went live recently. Wave 1 and 2 will see their deadlines on 28th February and 31st March, respectively.