The level of collateral on decentralized exchanges is approaching a milestone of $ 10 billion, with Uniswap still at the top of the pile.
According to research by Messari, the volume and liquidity on decentralized exchanges increased in 2021. The collateral is nearing a $ 10 billion milestone.
Researcher Rahul Rai noted that DEX volume rose to a record $ 72 billion in February. Dappradar reports that Uniswap has tied up over half of the total liquidity in DEXes with a TVL of $ 5.4 billion.
Rai added that, despite their success, automated market makers face their own challenges:
“A number of inherent problems such as volatile loss (IL), capital efficiency, slippage, gas costs, speed, and multi-token exposure hold them back.”
According to Dune Analytics, Uniswap’s dominance over the Ethereum-powered DEX sector is growing. The exchange offers around $ 6.5 billion worth of weekly trading, or 62.2% of combined trading on Ethereum-DEX.
Rival DEX SushiSwap, spawned as a Uniswap fork in late August 2020 and with big plans for 2021, ranks second in terms of volume – with $ 1.6 billion weekly trading, or 15.2% of the sector’s total trade.
Curve Finance ranks third at 6.2% and has traded $ 647 million in the past seven days.
DeFi aggregators are growing at an unprecedented rate, with volume this year already dwarfing that of all of 2020. According to Dune Analytics, the 1-inch exchange is currently the highest in volume at just over $ 1 billion in the past seven days.
The sector’s total volume for March was already $ 44.3 billion – more than October and November 2020 combined.