The trading volumes on Uniswap V3 have surged to $6.5 billion, catapulting the platform to the second-largest decentralized exchange (DEX). The third version of the popular platform was released on May 5 but had a shaky start.
According to data from Messari, Uniswap V3 has overtaken Sushiswap and comes a close second to its earlier version, Uniswap V2, which is still leading with a trading volume of $12.4 billion.
Race of the DEXes
As decentralized exchanges continue to experience explosive growth due to the increased demand for DeFi, top platforms have been battling out for the top position. Despite the market crash that bled the entire crypto ecosystem, data from DeFi Pulse indicates there’s $18.68 billion locked in DEXes.
Uniswap V3 was launched as an upgrade of the V2, and its automated money maker (AMM) is already turning over 100 percent of its TVL daily. That’s five times that of its counterpart, the V2.
Upon launch, V3 was dubbed a ‘Uniflop’ due to its complex structure and high gas fees compared to V2. However, V3 seems to be attracting traders and liquidity providers despite the negative reception.
UNI Price Drop
Despite the remarkable numbers witnessed by V3, Uniswap’s UNI token has taken a beating following the recent blood bath. Losing over 18 percent of its value in a 24-hr period, UNI’s price dropped to $25, which is the lowest since March.
As the market continues to witness hefty sell-offs, UNI is a 42 percent down from its all-time high price of $43.