Uniswap,PancakeSwap and the fight for 1st place

Another symbolic step for Uniswap (UNI)

The Uniswap exchange platform has just crossed the $100 billion threshold of cumulative volume. The founder of the protocol, Hayden Adams, announced it on Twitter:

 

 

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Created in 2018, Uniswap took two years to experience a real explosion of its activity, thanks in particular to the beginning of the craze for decentralized finance. As we can see from the graph above, the platform’s volumes actually increased in mid-2020, before beginning to steadily increase to this day.

Since May 2020, Uniswap has recorded an average monthly volume of $11 billion. Moreover, this new step for Uniswap comes only 3 months after the platform reached the $50 billion cumulative volume.

Over the past 24 hours, Uniswap has processed nearly $1.2 billion in transactions, according to CoinGecko. This allows DEX to trail centralized platforms such as Bitfinex ($1.3 billion) and Kraken ($1.7 billion).

 

The Battle of DeFi rages

Although Uniswap retains its leading position in the field of decentralized trading platforms, intense competition is currently raging. Uniswap’s main competitor, SushiSwap continues to grab new users and its trading volumes are also increasing.

During the month of January, Uniswap’s markets generated more than $26 billion in volume, while $12 billion passed through SushiSwap. Although Uniswap is still ahead of the curve to preserve its number one spot, SushiSwap is growing and is not likely to stop.

Monthly volume of decentralized exchanges – Source: Dune Analytics

 

And the battle is also raging in parallel with Ethereum. Uniswap now faces significant new competition: Binance Smart Chain (BSC) protocols. Much cheaper and faster, the BSC is attracting more and more users, who are starting to move away from Ethereum-based protocols, such as Uniswap.

Transaction fees on the Ethereum network peak – sometimes more than $200 – and render DeFi protocols unusable when the network is saturated. That’s why platforms like PancakeSwap are starting to make a difference, and could quickly catch up with platform volumes like Uniswapsi, and this trend continues.

In any case, Uniswap remains a pillar of decentralized finance on Ethereum and will have allowed many traders to discover this universe. Even if Uniswap loses its number one spot, it will remain one of the initiators of this sector at a very young age.

PancakeSwap in the TOP DEX

The decentralized exchange (DEX) PancakeSwap based on binance Smart Chain (BSC) has seen its trading volume reach $500 million in the last 24 hours. It is now the second DEX in the world in terms of trading volume according to CoinGecko.

The rise of PancakeSwap is mainly due to the particularly high costs of using ethereum-based decentralized finance applications. Indeed, a simple conversion operation on Uniswap can reach tens or even hundreds of dollars.

Changpeng Zhao, CEO of Binance, said:

”The Binance Smart Chain can be used with only a few cents per transaction. In addition, it is a high-speed blockchain offering about 300 transactions per second (GST).”

To date, there are more than 660 trading pairs on PancakeSwap. The wrapped BNB (WBNB) is the most traded token with a volume in excess of $100 million daily.

Related post: How to set up MetaMask to use the Binance Smart Chain (BSC)?

Success of the Binance Smart Chain

In its six months of existence, the Binance Smart Chain (BSC) has met with some success despite a lack of decentralization in its design.  Many DeFi projects have developed on this new blockchain that have allowed dApps similar to those based on Ethereum.

Considering the active user base of the largest blockchains,  BSC has already surpassed EOS at the beginning of the year and generated a total transaction volume of about $24 billion in February.

The apps that generate the most volume are PancakeSwap and Venus. If these figures continue to grow at the same rate, Binance Smart Chain could surpass Ethereum this month in terms of activity and transaction on its blockchain.

 

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