Just 58% Of The Uniswap USD Volume Comes From The DEX Itself

Uniswap has become the largest decentralized exchange in the cryptocurrency space in recent years. Through several iterations of this platform, the DEX has become more appealing and robust. What is interesting, however, is where the DEX’s trading volume originates from.

Native Trading Dominance of Sorts

As is common among decentralized exchanges and trading platforms, the vast majority of orders and volume will occur through the platform natively. For Uniswap, that situation is not different, although it may be a bit less outspoken than some people may expect. The majority of trades occur via Uniswap itself – 77.6% in the past 24 hours – yet they only represent 57.4% of the daily USD volume. 

To explain this difference, it is essential to look at the origin of trades first. Knowing that nearly one in four Uniswap trades doesn’t originate on the platform itself may take some people by surprise. The remainder of trades occurs from external sources capable of hooking into this DEX’as API and liquidity pools. Currently, there are many “unknown other sources“, followed by the 0x API, 1Inch, Dodo V2, and so forth. It is good to see decentralized protocols hook into one another to create a more versatile trading environment.

For the USD volume, a similar thing is happening. There are many ‘unknown sources” for USD volume, followed by 1Inch, the 0X ASPI, and so forth. Figuring out what these unknown sources mean exactly is a tough challenge, although it only appears beneficial to the Uniswap ecosystem. 

Considering how Uniswap continues to attract ample liquidity – currently, $8.5 billion – and trading volume – $1.45 bn in the past day – things are looking up, Many people doubted decentralized exchanges would ever become successful, yet it is evident they can be. Even with Ethereum’s high transaction fees and occasional network congestion, this DEX isn’t slowing down in the slightest. 

What Comes Next For Uniswap?

On their own, these statistics might not make too much of a difference to onlookers. After all, it merely depicts how powerful this DEX is and where its volume and trades come from. However, with these “unknown sources” making such a significant impact, exciting things are on the horizon. More and more protocols, services, and platforms appear to tap into Uniswap for various reasons.

However, with the advent of Uniswap V3 on the horizon, things may heat up significantly. There are many improvements to be made where Ethereum-based decentralized exchanges are concerned these days.  Uniswap V3 will introduce some notable changes that can substantially impact its trades and overall volume. It is certainly, something to look forward to over the coming months. 

Looking to advertise? We will gladly help spread the word about your project, company, or service. CryptoMode produces high quality content for cryptocurrency companies. We have provided brand exposure for dozens of companies to date, and you can be one of them. All of our clients appreciate our value/pricing ratio. Contact us if you have any questions: [email protected]