Uniswap is shifting down the rankings because the trade continues to bleed liquidity after the top of its farming interval
The previous world main decentralised trade by quantity has now moved all the way down to the fifth place within the rankings. The trade has continued leaking liquidity because the finish of farming on 17 November. Uniswap has a complete locked worth (TVL) of $1.14 billion as of writing, having plunged 11.70% inside the final 24 hours.
Within the first week of November, the trade had a TVL of $2.753 billion. This determine had risen to $2.9 billion by the second week earlier than hitting $three billion on 12 November. The trade began shedding collateral as the top of the farming interval neared. On 18 November, the trade had misplaced nearly half of its worth. General, Uniswap liquidity has plummeted by 60%.
However there may be one optimistic metric on the trade – buying and selling volumes. In line with Token Terminal, Uniswap buying and selling volumes have remained regular throughout this era.
The monetary metrics supplier in contrast Uniswap’s liquidity loss and its buying and selling quantity, sharing the findings by way of a Twitter thread.
“Buying and selling quantity (GMV) doesn’t appear to correlate with TVL or the liquidity deposited into the buying and selling swimming pools. To a sure extent, TVL is required to scale back slippage in an AMM-style DEX, however it’s a much less correct metric when measuring the precise efficiency of a DEX,” a bit of the thread learn.
In line with the analytics supplier, the lack of liquidity [total value locked] didn’t impression the buying and selling quantity [gross merchandise value]. The full buying and selling quantity on the trade for the previous month is about $10 billion. Its competitor and ‘clone’ SushiSwap has a $1.four billion buying and selling quantity in the identical interval.
Uniswap fork and rival protocol SushiSwap have been among the many greatest beneficiaries of the liquidity outflow from Uniswap. Nonetheless, the protocol has misplaced a lot of the collateral it gained, shifting from a complete worth locked of $1.08 billion on 23 November to $535 million as of writing.
It’s exhausting to not make a case that Uniswap is the most important decentralised trade, not less than when it comes to buying and selling quantity making an allowance for it has misplaced over half of its collateral.