Uniswap, the world’s leading DEX has just become the first-ever DeFi proto hit $3 billion in TVL (total value locked)
Uniswap’s milestone coincides with the TVL across all DeFi protocols, topping a record high of $12.98 as of writing. Uniswap’s TVL (total value locked) gives it a 23.22% dominance in the DeFi space. Second place in DEXes is held by Curve Finance whose TVL is $845.3 million. Balancer occupies third place with a TVL of $289.4 million.
Around $2 billion has been injected into DeFi protocols so far this month. The TVL across all DeFi protocols on November 1 was $11.14 billion ‒ a figure that has since jumped to $12.98 today.
As of writing, there is now over 8.5 million ETH locked in DeFi. Of these, 3.275 million ETH is held on Uniswap. According to Uniswap.info liquidity has gone up by 1.86% to reach $3.29 billion. The 24 hr volume has also surged by 4.47% to $253 million, with $1.5 billion of the liquidity is in Ether.
Messari’s Ryan Watkins asserted that Uniswap’s fundamentals have been holding steady, which explains the current status despite volumes being on a slump for the last two months.
“Uniswap’s volumes have come down quite a bit since September, but even still its fundamentals are very strong. Extrapolating Uniswap’s worst day over the last 3mo ($135mm in volume) over the next year still gets you to ~$25mm in annual earnings assuming the 5bp fee switch,” he posted on Twitter.
There are concerns about a looming liquidity exodus from Uniswap when UNI distribution to the involved pools ends next Tuesday (Nov 17). This will likely affect UNI price that, as of writing, is $3.08 – up 10.43% over the last 24 hours.
The potential likelihood at the moment is Uniswap rolling out new farms for ETH/UNI or stablecoins and UNI, with better stimuli so as to hang on to the collateral on the platform. However, at the moment, no announcement or update has been given with less than a week to go. Analysts believe that the end of farming will result in a significant price discovery moment for UNI.