The prominent decentralized exchange protocol Uniswap has surpassed the major digital currency exchange Coinbase in terms of the monthly trading volume. According to the new data presented by Dune Analytics, the monthly trading volume of Uniswap exceeded the $15 billion figure in the month of September.
Dune Analytics data says that the San Francisco-based leading digital currency exchange Coinbase saw its monthly trading volume reaching $13.6 billion approximately in the month of September. While on the other hand, the decentralized exchange Uniswap’s trading volume went even higher than that of Coinbase’s trading volume and hit $15.371 billion approximately in September. The monthly trade volume of Uniswap counted for almost 65% of the total trading volume witnessed by decentralized exchanges in that month. In September, decentralized exchanges (DEXs) total trading volume reached $23.5 billion.
Source: Dune Analytics
There are two crucial driving factors that might have driven the trading volume of Uniswap in September. The first one is the impressive growth witnessed by the decentralized finance (DeFi) industry throughout recent months. The DeFi industry witnessed a huge surge in institutional interest over the course of the recent time. Due to the larger inflow of institutional investors, the user activity on the decentralized exchanges surged high. Moreover, decentralized exchanges were further fueled by governance tokens’ yield farming as well.
On the other hand, the second possible factor behind this exponential surge of Uniswap’s trading volume is the launch of its native governance token UNI which has gained huge traction in the community. Many top cryptocurrency exchanges listed Uniswap’s UNI on their trading platforms. This caused an increase in the interest of investors in this governance token. So, UNI is another major driving factor that has pushed the growth of the Uniswap decentralized exchange in the month of September.
DeFi’s Uniswap exchange has been competing with the major United States-based cryptocurrency exchange since the time when it outshined Coinbase Pro in terms of daily trading volume on the 30th of August. It was the first time when Uniswap overtook the top exchange by recording $426 million in daily trading volume.