Uniswap tops $50B in lifetime volume, but where’s it coming from?

CRYPTONAIRE LYWEEK CRYPTO investment journal

Leading Ethereum-based DEX Uniswap has now crossed the $50 billion mark in lifetime volume, although some are skeptical about the sources of the platform’s liquidity.

Leading decentralized exchange Uniswap has surpassed $50 billion in all-time trade volume, a major milestone for the DEX sector.

On Dec. 15, Uniswap creator Hayden Adams tweeted data indicating the platform has processed a life-time volume of $51.7 billion across 26,000 unique trading pairs — equating to nearly $2 million per pairing on average.

If Uniswap were to maintain its recent volumes of $10 billion per month over the past three months, Adams estimates the platform would exceed $1 trillion in life-time volume in eight years.

Some from the crypto community have expressed skepticism regarding the source of much of Uniswap’s volume — with the platform featuring no KYC, and no vetting process for listed tokens.

Twitter user ‘cyber_hokie’ insinuated that much of the platform’s volume came from darknet markets, money laundering, and wash-trading — although Uniswap’s fixed fee schedule would make wash-trading cost prohibitive.

The platform has been a destination for ill-gotten funds. In September, the hacker who stole $200 million of crypto from Hong Kong-based exchange KuCoin sent $1.2 million worth of SNX to Uniswap for laundering, intensifying concerns regarding the potential for criminal actors to abuse the platform. Read more...

CRYPTONAIRE LYWEEK CRYPTO investment journal