DeFi "Flippening" comes on exchanges: Uniswap exceeds Coinbase in terms of trading volume
in crypto
The increase in DEX
"Flippening"
A threat to centralized exchanges
Trading volume is rising on Uniswap and other decentralized cryptocurrency exchanges, challenging established areas such as Coinbase. At the same time, fees and congestion on the Ethereum blockchain are rising - here and there quotes in real time.
The increase in DEX
Uniswap, a semi-automated platform that brings together buyers and sellers of cryptocurrency and other digital assets, saw its trading volume climb to $ 953.59 million in data on September 1, a gain ten times higher than in July, according to the uniswap.info website.
The 24-hour trading volume exceeds $ 50 billion, at least XNUMX% higher than the daily trading volume seen on Coinbase Pro, the largest centralized cryptocurrency exchange based in the United States .
The rise of decentralized exchanges, or DEXs, represents a new chapter in this year’s boom in decentralized finance. The fast-growing ecosystem, known as DeFi, consists of automated lending and trading platforms built on distributed computing networks such as Ethereum, using open source software and programmable cryptocurrencies. DEX aims to provide better and cheaper ways to conduct transactions currently handled by traditional banks and exchanges.
"Flippening"
“Flippening” is the crypto jargon used to define the presumptive moment when one blockchain or digital asset trend exceeds another. The use of Uniswap grew so rapidly that it took the top spot in the payments of applications built into the Ethereum network, where most of DeFi’s development takes place.
The total blocked value in DeFi applications, the most common measure for activity measurement, rose 13 times this year to approximately $ 9.2 billion, according to Defi Pulse. Uniswap has now moved to # 1,7 on this scale, with $ 11.6 billion in total blockchain value, while overall decentralized exchange volume nearly tripled in August to $ XNUMX billion from July.
Uniswap traders have paid $ 5 million (10.805 ETH) in transaction fees in the last 24 hours, according to etherscan.io. More than double the fee paid for the linked dollar stablecoin tether (USDT), which has been the main contributor so far, according to ethgasstation.info.
A threat to centralized exchanges
Uniswap is designed to be more customizable than centralized exchanges like Coinbase. Instead of listing specific assets available for trading on the platform, traders can select and list the tokens they want to exchange; currently the platform boasts more than 6,020.
DeFi has grown so fast that centralized exchanges from Binance to FTX are in a hurry to launch indices - and new trading contracts such as futures and eternal swaps linked to those indices - to give investors a way to bet on the growth of an industry segment. .
But some analysts believe that DEXs could pose a more existing threat to the centralized exchange. Currently, there is no indication of a possible rotation in the dynamics that favor DEX.