Trading Volumes On Uniswap And Coinbase
San Francisco-based exchange Coinbase has fallen behind decentralized exchange Uniswap in terms of trading volume since the beginning of 2023, making the DeFi exchange the premier decentralized trading spot for users.
- Uniswap surpassed Coinbase in terms of spot trading volumes in February 2023.
- Despite the decline in trading volume, Uniswap still remains ahead of Coinbase.
- Uniswap facilitated $150 billion in trading volume, surpassing Coinbase’s $145 billion.
- Uniswap generates more than half of the daily trading volume of all DeFi protocols combined.
- In March, Uniswap accounted for over 60% of all DeFi trading over 7 days straight.
Decentralized Exchanges Catching Up With Centralized Exchanges
Decentralized exchanges (DEXes) are gaining ground on centralized exchanges (CEXes) in terms of trading volume and popularity.
- Security is a key advantage of DEXes, as they have not experienced major hacks like CEXes.
- Accessibility has been a challenge for DEXes, but Uniswap’s trading volume suggests investors are choosing the decentralized option.
- DEXes offer benefits such as permissionless trading, increased privacy, and lesser reliance on intermediaries.
- CEXes remain suitable for users who prefer self-custody and need jurisdictional compliance.
- DEXes are becoming mainstream, offering interchain infrastructural improvements and the ability to trade new tokens.
Hot Take
The rise of Uniswap and decentralized exchanges signals a shift in the crypto trading landscape. As investors embrace the benefits of DEXes, such as security and permissionless trading, centralized exchanges like Coinbase may need to adapt to stay relevant. The competition between CEXes and DEXes will likely continue to evolve, with each catering to different user preferences and needs.
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