May 17, 2022

Combined DEX liquidity tags new all-time high of $10 billion

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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
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Published Date: Mon, 22 Mar 2021 05:10:19 +0000