Uniswap rise in trading volume indicates strong growth in trader appetite for top DeFi products

  • Uniswap DEX surpassed the 1.5 trillion mark in trading volume, casting a bullish gaze on Web3 liquidity solutions.
  • DEX saw $500B volume increase since Apr 2022, after hitting $1T total volume since launch. 
  • It comes when the regulatory landscape is slippery in the crypto market.
  • Decentralization is the way to go now, with trader appetite for top DeFi products still strong - Markus Levin, XYO co-founder.

Uniswap (UNI) decentralized exchange (DEX) breached the $1.5 trillion mark in trading volume metrics on April 24, signaling a new wave of bullishness on Web3 liquidity solutions among players in the digital asset sector. With the positive sentiment among cryptocurrency traders for Uniswap, the change is expected to affect rival crypto-native products.

Notably, the $1.5 trillion volume watershed for the world’s largest DEX represents a $500 billion aggregate increase in volume for Uniswap since April last year, when it exceeded $1 trillion in total trading volume since the decentralized exchange’s premier. 

Santiment data shows positive attitudes on different metrics, as presented below.

Uniswap’s milestone comes when the regulatory landscape is slippery

Uniswap DEX surpassing the $1.5 trillion total trading volume has come at a slippery time in the crypto playing field. For instance, crypto enthusiasts and Wall Street traders in digital asset products closely watch the regulatory environment in the US and worldwide.

The milestone also comes when several crypto-native peers in the DEX space seek opportunities to engage and rival within a competitive sector by offering traders innovative incentives.

XYO protocol co-founder, Markus Levin, states that Uniswap’s rise indicates a strong trader appetite for top decentralized finance (DeFi) products. In his words:

DeFi is truly unstoppable at this point in the market cycle.

The $1.5 volume threshold shows the desire for trading establishments in the decentralized to create billions of dollars in leverage for investors and users. Notably, these decentralized finance ecosystems eliminate third parties and excessive fees to avoid billions being sucked up by some unknown “fee-charging scheme.”

DeFi supporters may be against centralized crypto exchange (CEX) counterparties such as Coinbase and Kraken. They may also take issue with Wall Street trading solutions for digital asset products that impinge prohibitive fees on their provisions for Web3 liquidity.

Levin has positioned the spike in Uniswap volume as another indicator that it is “high time” legislators in Washington DC pass DeFi laws that “protect innovation within our countries alongside its investors.”  In his opinion, the United States Securities and Exchange Commission (SEC) is trying to enforce against DeFi without setting up new laws.

Uniswap price could rise 15% if bullish momentum grows

At the time of writing, Uniswap price gained almost 5% in the last 24 hours. UNI is attempting a recovery above the $5.37 support level despite overhead pressure. An increase in buyer momentum above this level could see the altcoin tag the $5.90 resistance level, before a potential neck up to the $6.29 resistance level. Such a move would denote a 15% climb from current levels.  

UNI/USDT 1-day chart

On the other hand, if bearish momentum overpowers the bulls, Uniswap price could lose the critical support at $5.37, and in the dire case, extend a leg down to the $5.10 swing low.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis