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Yes, you heard that right. Uniswap is one of the leading automatic market-making trading platforms on Ethereum which has now managed to speed past its rivals to grab position one as the most popular DeFi Dapp owing to historic market sell-off attempts. A little time before bouncing back to claim its title, Uniswap had lost its valuable top spot to the lending protocol Aave(LEND) last week because of a huge surge in user interest in this platform. This user interest collated together to take the total value of crypto assets locked in this particular platform to be #1.7 billion as of 31’st August. But this figure has now come down to $1.39 billion which is drastic taking Aave down to the third place.
Source: bitinfocharts
The above illustration shows a shocking shoot up of the Ethereum transaction fee owing to the activity in the DeFi markets. Although the cryptocurrency markets overall have gone down in value, as of yesterday a total of $10 billion were seemingly wiped off the market yesterday. But Uniswap still managed to conduct its daily trading volume almost triple in an amount in the last one week, the fees going up to high levels of more than $14 for standard transactions and even higher for the Uniswap smart contract.
Now that the daily trading volumes have reached its zenith with the background of high gas fees, the yield for liquidity providers also has increased without any doubt. According to reliable data from Uniswap ROI, which is a platform meant to track the yields of diverse Uniswap pools, the heightened volatility in the market and high trading volume in combination has led to the push in the expected APR for some of the pools with triple digits recorded. But, there is an issue recorded as well amidst this. Impermanent losses which are a measure of potential losses incurred due to price swings also increased.
While Uniswap has managed to reclaim its position as the most popular Ethereum DeFi DApp, recent competitor SushiSwap hasn’t fared so well. Like most other cryptocurrencies in recent days, the SUSHI token crashed by 20% in the last 24 hours to reach its lowest value since August 31. Trading volumes for the token are also down by almost 50%, indicating dramatically reduced interest in the Uniswap alternative.
The traders on Uniswap have reportedly paid $5 million (10,805 ETH) fees in the last 24 hours according to data source etherscan.io. This is double the amount that is paid for transfers of the dollar-linked stablecoin USDT – Tether which had been the top contributors. Top gas payers:
Source: Etherscan.io
Uniswap is designed to be a customized offering compared to a centralized exchange like Coinbase. Instead of going for a listing of specific assets that are available for trading on the platform, traders can now choose and list the tokens which they want to transact in. As of now, the platform has more than 6,020.