Uniswap became the first decentralized exchange with a daily trading volume of more than $1 billion

The surge in yield farming activity due to decentralized finance protocols led to Uniswap becoming the first DEX to trade more than $ 1 billion in 24 hours.

According to aggregator CoinGecko, currentlyThe daily trading volume of ERC-20 tokens on the platform is $ 1.02 billion, which is the third largest indicator among all operating cryptocurrency exchanges. Uniswap V2 is second only to Binance and OKEx with $ 6.25 billion and $ 1.1 billion, respectively.

In addition to the fact that the decentralized exchange has outpaced the popular centralizedplatforms Huobi and Bitfinex, it also becamethe leading DeFi protocol with $ 1.77 billion in smart contract assets. According to the DeFi Pulse website, this impressive fund accounts for 18.05% of the total value of funds locked in decentralized finance protocols.

Despite the current success, experts predictthat Uniswap will not be able to maintain its leading position for long due to the aggressive actions of competitors. As an example, they cite the SushiSwap fork, which has already attracted $1.47 billion to its platform through the strategy of “vampirism,” siphoning liquidity and poaching competitors’ token holders. Similar methods are also used by yuno.finance, Hotdogswap, pizzafinance and others.

The increased user activity leads to network congestion and an increase in Ethereum transaction fees up to $ 16, which makes small transactions unprofitable.

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