The DeFi space has grown by leaps and bounds. It has finally hit the $11 billion mark and this comes as a pleasant surprise when just two months ago, the TVL in DeFi was significant yet had a long journey. DeFi’s performance eruption has been only due to the projects in its ecosystem which have done well, poorly, and some exceedingly well. Off the exceedingly well projects, Uniswap is one of them.
Uniswap is bigger than what DeFi was, just two months ago. The trading protocol now becomes the first to exceed the $2 billion milestones. The record figure was clocked in by the giant protocol after midnight on Monday. It currently has $2.06 billion worth of crypto assets locked in according to DeFi pulse rankings.
Source: DeFi Pulse
As of now, the TVL stands at $2.078 billion with 2.9M ETH locked in the system. Uniswap now makes a whopping 18% share for itself in the close to $11 billion DeFi TVL which is great by any standard. Uniswap, as we know, is based on the Ethereum blockchain network and it utilizes an automated market-making system that leverages liquidity pools. This is a unique feature for the user as it will help them exchange or swap between ether (ETH) and any ERC-20 token.
Even the holders of the token are incentivized to deposit tokens in the liquidity pools so that they can earn interest and a substantial percentage of the swap fee. Combining all this, the total balance in these pools together comprises Uniswap’s $2 billion Total value locked. Uniswap has really done well especially in the last few weeks and the launch of UNI tokens has given it the necessary push towards up north.
From the above graphic illustration, we can see that the period between August and September start was the best considering there was no decline in TVL reported. Although the month of September again was marked with the rise and falls, the stability towards going up has been happening no matter what.
In early September, SushiProtocol called the shots with $830 million worth of vital liquidity moved to it. As a result of this major shift, Uniswap’s Total value locked dipped to the $400 million mark on September 10th. Midway there were controversies surrounding Sushi also, which had quite an impact on its protocol. In addition to that Uniswap strategically took towards launching its own UNI token. The success of the UNI token was evident from the response by the users. It was airdropped for over $500 million to wallet addresses which had just begun to use the protocol before September.
The UNI token was the incentive that attracted people to Uniswap and its TVL after a few days after the UNI launch touched $1.8 billion. Over the next four years, the platform plans to distribute 4 billion UNI tokens to the community in the coming 4 years. Maker is close next to Uniswap with its TVL set at $1.96 billion.