Uniswap is falling in the ranking, as the stock exchange continues to leak liquidity after the end of its farming period
The world-leading decentralized stock exchange in volume, has now dropped to fifth place in the ranking. The exchange has continued to leak liquidity since the end of agriculture on 17 November. Uniswap has a total blocked value (TVL) of $ 1.14 billion at the time of writing, having plummeted 11.70% in the last 24 hours.
In the first week of November, the exchange had a TVL (total blocked value) of $ 2.753 billion. That number rose to $ 2.9 billion in the second week, before reaching $ 3 billion on November 12. The exchange began to lose guarantees as the end of the farming period approached. By November 18, the exchange had lost almost half its value. Overall, Uniswap’s liquidity dropped 60%.
But there is a positive metric on trading volumes on the stock exchange. According to the Terminal Token, Uniswap trading volumes remained stable during this period.
The financial metrics provider compared Uniswap’s loss of liquidity and its turnover, sharing the findings through a topic from Twitter.
“Turnover (GMV) does not seem to correlate with TVL or the liquidity deposited in the trading pools. To some extent, TVL is necessary to reduce slip in an AMM-style DEX, but it is a less accurate metric when measuring the actual performance of a DEX, ”reads a section of the thread.
According to the analysis provider, the loss of liquidity [valor total bloqueado] did not impact turnover [valor bruto da mercadoria]. The total volume of trading on the exchange last month was around $ 10 billion. Its competitor and clone SushiSwap has a turnover of $ 1.4 billion in the same period.
The Uniswap fork and the rival SushiSwap protocol were among the biggest beneficiaries of Uniswap’s liquidity outflow. However, the protocol lost most of the guarantees it won, going from a total blocked value of $ 1.08 billion on November 23 to $ 535 million at the time of writing.
It is hard not to argue that Uniswap is the largest decentralized exchange, at least in terms of turnover, taking into account that it has lost more than half of its guarantees.