DeFi Protocol Uniswap Crosses $2 Billion In Total Value Locked

28. Sep 2020 Posted by Akolkar B on News

It’s just 10 days back that DeFi protocol Uniswap announced its native governance token UNI in the market. In a major milestone, Uniswap now becomes the first DeFi protocol and a non-custodial exchange to cross $2 Billion in Total Value Locked (TVL).

The combined TVL for all DeFi token combined is $11.2 billion. With $2.11 Billion in TVL, Uniswap (UNI) becomes the top DeFi token with a market dominance of 18.76%. The top-three Uniswap tokens by liquidity are Ether (ETH), Tether (USDT), and wrapped Bitcoin (wBTC).

The UNI token has emerged as one of the most powerful and popular liquidity providers in the DeFi lending market. Major cryptocurrency exchange like Binance, Coinbase, Gemini and other have rushed to list the UNI tokens.

In the entire DeFi Uniswap is at the top spot with Total-Value-Locked followed by MakerDAO having its TVL just under $2 billion. Ever since its listing 10 days back, UNI has seen a consistent growth in its liquidity with a daily trading volume of $276 million.

Thus, Uniswap has successfully managed to cover the liquidity loss that it suffered from its forked version SushiSwap earlier this month. Uniswap is an Ethereum-based DeFi protocol that utilizes automated market making (AMM) system thereby leveraging liquidity pools so that users can easily swap between Ethereum (ETH) and other ERC20 tokens.

The majority of the project liquidity comprising of 80% of the total amount has been locked in liquidity pools that earn UNI. The most popular pools has been ETH/wBTC which alone holds around 30% of the total amount.

Currently, the Uniswap farming is going in full swing and is likely to continue until the 17th of November. Post that, liquidity will move to other pools of other platforms unless Uniswap comes with more surprises and new offerings.

Despite the massive surge in UNI’s TVL, the price of the UNI token remains more or less flat over the last week. At dress time, UNI is down 8.35% in the last 24 trading at $4.46 with a market cap of $563 million.

Currently, the top four DeFi token contribute more than 80% of the TVL for the entire DeFi market.