Uniswap DEX Overtakes Coinbase Volume

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Last Updated on 6 October 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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It is said that the Asian tiger economies of the 1990s (by following the example of Japan in the 1980s), were able to rise as fast as they did by copying the style of the US’s industrial production during the second World War. The methodology is known as catch-up nations.

Furthermore, as the US’s grand scale military industrial project had been finished decades before, the Asian tigers were able to cut out the mistakes made in the past and only copy the solutions. In this way, the emerging economies were able to grow at a faster pace. Ever since then, whenever a new economy or technology is developed, it is said that the second generation of companies to implement it will be more successful.

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DeFi as catch-up for crypto exchanges

DeFi is proving to be just that as the student has become the teacher. Yes, indeed, the unstoppable rise of decentralized finance, and more particularly the growth in popularity of decentralized exchanges, seems unsurmountable at this point, and is ready to outpace classic crypto.

According to volume research for the month of September, DeFi giant Uniswap’s Decentralized Exchange (DEX) overtook Coinbase in terms of volume.

Uniswap and food coins

Ever since its creation, Coinbase, the popular platform run by CEO Brian Armstrong, was known as one of the key platforms in the crypto ecosystem. Thanks to it’s easy-to-follow explanations, crypto novices could easily sell and buy popular coins. Armstrong revolutionized the accessibility and made sure that the masses were able to trade cryptocurrencies.

However, given that experienced crypto traders looked for new ways to use decentralized solutions, several competitors emerged which offered new solutions and products. One of them that has attracted a lot of attention in the past few months is the Uniswap platform.

Uniswap lost a lot of it’s splendor during the second half of August because of the Food coins debacle, which included the scandals surrounding Sushi and HotDog (yes, those are real names of cryptocoins).

September made for a comeback of DeFi with several coins regaining their status. And thus, although long lagging behind, Uniswap has by now grown to such an extent that it is able to compete with the centralized giants.

In the past month, Uniswap recorded a record volume of $ 15.4 billion, against “only” 13.6 billion on the side of Coinbase.