Uniswap is a fully open-source decentralized exchange (DEX) that runs on the Ethereum blockchain. The Uniswap dapp is the number one application in the DEX category by trading volumes tracked by DappRadar and has become a favorite for many. Thanks partly to its fee distribution to liquidity providers and tokenless model.
Key Takeaways
- Uniswap showed positive trading volume trends in Q1 2020 with growth of 264% in March 2020 compared to January 2020
- Uniswap is the most widely used exchange with around 400 possible trading pairs
- ETH/DAI-DAI/ETH, ETH/USDC-USDC/ETH, MKR/ETH-ETH/MKR hold 73% of the total trading volumes in Q1
- ETH/HEX-HEX/ETH is showing a huge spike in trading volumes. Holding 12% and 7% of total Unsiwap trading volumes in April 2020
- According to 24-hour data ETH/HEX is the top trading pair on Uniswap at the time of writing
Top 10 trading pairs on Uniswap
Trends of the top six trading pairs on Uniswap
Newsletter During Q1 2020 the ETH/DAI pair has gained a clear leadership position reaching between 1 and 2 million USD in daily trading volumes. With highs of more than 10 million on March 12th and 13th. On the other hand, the pair lost their position in the middle of April 2020.
ETH/USDC stands in second position with a contribution of 10% to the total trading volume. This trading pair has gradually increased having made its entry into the market in Q1 2019.
During Q1 2020 ETH/USDC has shown peak trading volumes in the month of March. Specifically on the 12th and 13th March, when more than 5 million USD was observed. Clearly due to the Black Thursday events.
Ethereum sold perspective
Ethereum bought perspective
New emerging pairs
ETH/HEX is the top trading pair on Uniswap according to 24-hour data at the time of writing. Early signs are positive, but HEX’s token value is still less than $1.
Uniswap 2.0
Uniswap v1 only allowed trading pairs to exist between ERC 20 and ETH tokens, meaning users needed to route every trade through an ETH token. This feature, while still allowing for conversion between any two ERC 20 tokens, meant that all trades had to be mandatorily routed through the ETH token, increasing the fee amount and slippage potential.
Uniswap v2 will remedy this, by introducing direct ERC20/ERC 20 tokens. This will help liquidity providers, by allowing them to bypass the ETH token and maintain direct links with less volatile tokens.
