The rise of the Decentralized Finance (DeFi) space, an umbrella for a wide range of financial tools tailored to Blockchain investors and traders, continues to be prevalent. Many of the Decentralized Apps (DApps) various staking and rewards programs continue to attract many investors to the space. Fortunately, this success has now propelled many DEXs, who are autonomous DApps that allow crypto traders to carry out their operations without the need for a middleman, to continue to thrive. According to data from Messari, the gross liquidity pools of these DEXs is now at an ATH.
Uniswap dominating over other DEXs
The overall trading and liquidity volumes of DEXs this year have been at a high. The collateral figures of these DEXs, according to crypto data service providers- Messari, are also nearing an ATH of $10 billion. However, Uniswap- one of the most popular DEXs in the DeFi space, currently boasts half of this amount in its collateral value. However, what this means is that the success of Uniswap, as the leading DEX, can no longer be ignored. One of the researchers at Messari confirmed that the trading volumes of DEX in February were at least $74 billion, a record high figure from the space.
A large portion of the weekly $6.5 billion trade figure is also believed to be held by Uniswap, as the DEX’s dominance continues to be high. In the same research by Messari, it was also discovered that Uniswap boasts about $3 billion of the Total Value Locked (TVL) in the DEX space, a figure that is more than half of the gross TVL of $5.4 billion, as of today. The research by Messari also detailed that the issues being faced by many of the DEXs like capital efficiency, impermanent loss (IL), gas costs, slippage, multi-token exposure, and general speed have largely eluded Uniswap. Most of the issues above are also believed to be dragging the overall space backward, but Uniswap seems to be twice as tall.
Sushiswap and co. could rival Uniswap
While the conclusions from the data research by Messari suggest that Uniswap is the king of DEXs, other DEXs could take the mantle up. The weekly trading volume figures of Sushiswap, pegged at $1.6 billion, show that they are on the verge of rivaling Uniswap. Sushiswap announced earlier in the year that they had plans to become one of the largest DEX this year, and it seems that the DEX is on the verge of achieving that. The DEX currently occupies 15.2% of Ethereum’s DEX space, which is still far from the 62.2% Uniswap occupies, but there is still time for growth.
Curve Finance is another DEX that could rival Uniswap, despite boasting a lower figure when compared to both Uniswap and Sushiswap. The weekly trade volumes of the Curve Finance DEX are around $645 million weekly, a figure that amounts to 6.2% of the Ethereum DEX trade volumes. However, all things being equal, it seems that the top three DEX are poised to do great things this year, as the DeFi community anticipates in excitement.