Uniswap, the decentralized exchange (DEX) is leading its way with the daily swaps. While the monthly trading volume has declined since the beginning of January 2022. After a brief spike in volume in Nov. 2022, dex trade volumes have been lackluster for more than one month.
Uniswap uses a set of smart contracts to execute trades on its exchange. It is an open source project and falls into the category of a DeFi product as it uses smart contracts to facilitate trades. According to Coingecko, Uniswap version three (V3) noted the 24h volume of $792 Billion. Curve holds the second-largest trade volume with $240 million in 24 hours.
The 100 decentralized crypto exchanges have a total 24h trading volume of $1.91 Billion with a -46.37% change in the last 24 hours. At press time, the DeFi volume dominance is at 3.1%, and the 3 largest decentralized exchanges by volume are Uniswap (v3), Curve (Ethereum), and Uniswap (v2).
In this year, there has been $15.33 Billion in global swaps settled among decentralized exchange (dex) platforms. In the previous month, DEX protocols recorded nearly $43.65 Billion in swaps, which means that during the first two weeks of 2023, 35.12% of last month’s volume has been reached.
Meanwhile, Uniswap V3 captured the most volume during the last 24 hours. Uniswap is followed by Curve ($240 million), Uniswap v2 ($94 million), Pancakeswap v2 ($80 million), and Balancer v2 ($76 million).
Uniswap Labs and Circle, a payment technology firm, released their research on on-chain foreign exchange (FX). That is a new model of global value exchange which offers a faster, cheaper, and more efficient alternative for cross-border payments for business and consumers. It will also address long standing risks in the FX market, according to Uniswap.
Uniswap noted that the research conducted by them along with the Circle explores topics such as cross border payments, market structure, remittance, and more.
According to the data sourced from Uniswap protocol pools, “DeFi rails could reduce remittance costs by as much as 80%, saving unbanked and underbanked individuals $30 billion per year. For a $500 remittance, the cost of on-chain FX conversion and on/off-ramping is as low as $4.80, a small fraction relative to the average cost of remittance of $28.00 through banks and $19.04 through traditional remittance operators.”