Uniswap is ready to face increasing competition from decentralized exchanges. Those exchanges are targeting the tokens of rival networks. The list includes the forthcoming Polkaswap platform.
Also, the TRX (Tron)-affiliated JustSwap platform recently emerged as the second-largest DEX with about $200,000 in daily trade, according to CoinGecko. However, artificially bolstering its rankings, some analysts believe JustSwap’s volume may be inflated through wash-trading.
Uniswap is the first decentralized exchange that tagged ten-figure volumes during a yield farming frenzy and ‘vampire attack.’
There is a dramatic spike in yield farming activity. It is because of the SushiSwap and similar protocols. Thus, Uniswap has become the first decentralized exchange (DEX) to exceed $1 billion in 24-hour trade volume.
Uniswap V2, by normalized trade volume, is the third-largest exchange. It has $1.02 billion worth ERTC-20 token that changed hands over the past day. This is according to crypto data aggregator CoinGecko.
CoinGecko ranks Uniswap below only Binance and OKEx. They represent $6.25 billion and $1.10 billion in daily trade, respectively. The decentralized exchange now beats out major centralized platforms like Coinbase Pro, Huobi Global, and Bitfinex.
Moreover, the boom in yield farming has seen Uniswap to suddenly emerge as the top decentralized finance (DeFi) protocol by locked funds with $1.69 billion. So, according to DeFi Pulse, it represents 18.05% of the total value locked in the smart contracts of the sector.
Analysts are expecting that the dominance of Uniswap may be short-lived. It is because rival forks are offering powerful incentives to provides liquidity. In recent weeks, they have increased.
Uniswap’s unaudited fork is Suwhiswap. It already attracted $1.47 billion in locked funds with what many calls a ‘vampire attack’ designed to suck liquidity from Uniswap.
Rival platforms offer powerful incentives to yield farmers to stake LP tokens on their platform. Those tokens are for the liquidity provides on Uniswap.