Uniswap X Reaches $1 Billion Trading Volume Milestone
The permissionless and open-source protocol, Uniswap X, has achieved a significant milestone by surpassing $1 billion in cumulative trading volume since its launch in July. Market makers Wintermute and Tokka Labs have been consistently dominating, accounting for 60%-80% of the daily trading volume.
New Fillers Emerging as Top Players on Uniswap X
Despite the current dominance of the Defi market, there is still room for new players to emerge as leaders. Recently, a newly onboarded Filler on Uniswap X claimed the top spot within the past month. Currently, there are 15 active Fillers, with 4 more onboarding. The competition among Fillers is intensifying, raising questions about the optimal number of Fillers to achieve the best price and shortest transaction time.
In the last month, a new Filler disrupted the status quo by capturing over 50% of the volume since its onboarding. This dramatically reduced the share of the second filler from 90% at launch to approximately 20%. The third Filler also commands around 20% of the trading volume, and all three top performers are market makers.
A market observer and an X user initiated a conversation by questioning the competitiveness of pricing when just a few market makers supply a significant portion of the volume. The ongoing criticism of Request for Quote (RFQ) in DeFi, where 2-3 market makers often dominate volume, raises intriguing considerations about the overall competitiveness of pricing.
Uniswap’s Surge as Defi Market Reaches 14-Month High
Following the recent bullish wave in the crypto market, Uniswap (UNI) has emerged as the best-performing top coin. In the last seven days, the price of Uniswap has increased by approximately 24%, rising from around $5.09 to $6.35.
This surge in price has lifted UNI’s market value to $4.8 billion, its highest level since August. Although UNI is currently valued higher than Bitcoin Cash (BCH), it is still 86% lower than its all-time high reached in 2021.
In addition, token holders have been cashing out profits after the price jump. According to Lookonchain data, a user named stevu.eth withdrew a substantial amount of UNI tokens from Binance, holding a sizable amount valued at $3.18 million.
The Defi market as a whole is thriving, with a total market cap of $58 billion as of November 2023 according to TradingView data. This valuation comes 14 months after the previous Defi bubble in 2022.
Hot Take: Uniswap X Continues to Innovate and Grow
Uniswap X’s achievement of surpassing $1 billion in trading volume demonstrates its position as a leading protocol in the crypto space. The dominance of market makers Wintermute and Tokka Labs highlights the importance of liquidity providers in the ecosystem.
The emergence of new Fillers on Uniswap X brings excitement and competition to the platform, raising questions about pricing competitiveness and the optimal number of Fillers. As Uniswap’s price surges and the Defi market reaches new heights, it is clear that Uniswap X continues to innovate and grow, solidifying its position as a key player in the decentralized finance industry.
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