The amount of collateral on decentralized exchanges is nearing a milestone high of $10 billion, with Uniswap still sitting at the top of the heap.
Volumes and liquidity on decentralized exchanges have surged in 2021, with collateral approaching a milestone high of $10 billion, according to research by Messari.
Researcher Rahul Rai noted that DEX volumes for February soared to a record $72 billion. Dappradar reports that Uniswap has over half of the total liquidity locked up in DEXes with a TVL of $5.4 billion.
Rai added that despite their success, automated market makers face their own set of challenges:
“A number of inherent problems such as impermanent loss (IL), capital efficiency, slippage, gas costs, speed, and multi-token exposure are holding them back.”
According to Dune Analytics, Uniswap’s dominance over the Ethereum-powered DEX sector is growing, with the exchange hosting roughly $6.5 billion worth of weekly trade or 62.2% of combined trade across Ethereum DEXes.
Monthly volume of Ethereum-powered DEXes: Dune Analytics
Rival DEX SushiSwap, Title: Combined DEX liquidity tags new all-time high of $10 billion
Sourced From: cointelegraph.com/news/combined-dex-liquidity-tags-new-all-time-high-of-10-billion
Published Date: Mon, 22 Mar 2021 05:10:19 +0000