Decentralized Exchange Uniswap Sees Revenues Surge to New Heights

Ethereum trading protocol Uniswap is among the most popular projects in the entire cryptoeconomy right now, and its trailblazing rise continues to translate into new records for DeFi’s leading exchange.

As highlighted by crypto metrics firm Token Terminal on September 9th, Uniswap’s monthly revenues via fees in September have already passed the protocol’s previous August 2020 revenues record, and we’re just barely into the second week of the new month.

The revenue surge comes as Uniswap became a gravity well for volume over the summer. The decentralized exchange has set monthly volume records for three consecutive months in a row now and is decidedly on pace to do it for a fourth:

  • June 2020 ($452 million)
  • July 2020 ($1.76 billion)
  • August 2020 ($6.7 billion)
  • September 2020 circa Sept. 9th ($6.5 billion) 

Moreover, according to Token Terminal this volume growth has put Uniswap on pace to achieve ~$400 million in total fees paid on the year. That’s really impressive revenue for a young and rising DeFi project, no matter how you slice it.

This ascension into the cryptoeconomy’s primetime has put Uniswap within reach of eating centralized exchanges’ lunch for years to come. For instance:

  • On August 29th, Uniswap’s 24-hour trading volume ($426 million) bested U.S. crypto exchange giant Coinbase’s 24-hour volume ($348 million) for the first time ever.
  • On August 31st, Uniswap’s ETH/SUSHI trading pair brought in over $175 million in volume — more than the combined volumes of centralized exchanges Bitstamp, Bittrex, and Poloniex in the same span.

That Uniswap has become the premier venue for many token trading pairs so fast suggests that the protocol’s dominance over centralized exchanges — which are permissioned, KYC-ed, and account-based unlike Uniswap — is only…

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