Uniswap, the world’s leading DEX, has just become the first DeFi protocol to reach $ 3 billion in TVL (total blocked value)
The Uniswap milestone coincides with TVL in all DeFi protocols, reaching a record of $ 12.98 at the time of writing. Uniswap’s TVL (total blocked value) 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 ranks third with TVL of $ 289.4 million.
About $ 2 billion has been injected into the DeFi protocols so far this month. The TVL on all DeFi protocols on November 1 was $ 11.14 billion – a figure that has since jumped to $ 12.98 today.
At the time of writing, there are now more than 8.5 million ETH blocked on DeFi. Of these, 3.275 million ETH are maintained on Uniswap. According to Uniswap.info, liquidity rose 1.86% to $ 3.29 billion. The 24-hour volume also increased 4.47% to $ 253 million, with $ 1.5 billion in ether liquidity.
Ryan Watkins of Messari said that Uniswap’s fundamentals have remained stable, which explains the current situation, despite volumes having been declining for the past two months.
“Uniswap volumes have fallen somewhat since September, but their fundamentals are still very strong. Extrapolating the worst day of Uniswap in the last 3 months ($ 135 million in volume) next year still takes you to $ 25 million in annual earnings by assuming a 5 basis point rate change”, He posted on Twitter.
There are concerns about an imminent liquidity exodus from Uniswap when UNI’s distribution to the pools involved ends next Tuesday (17 November). This will likely affect the UNI price which, at the time of writing, is $ 3.08 – an increase of 10.43% in the last 24 hours.
The potential probability at the moment is that Uniswap will launch new farms for ETH / UNI or stablecoins and UNI, with better stimuli in order to secure collateral on the platform. However, no announcements or updates were given less than a week before the end. Analysts believe the end of the farming will result in a significant price discovery moment for UNI.