Along with the rest of the cryptocurrencies, the exchanges also suffered from the ‘dip’. Despite its huge popularity, decentralized exchanges were not alien to the same. Nevertheless, Uniswap managed to maintain and further strengthen its position as the largest DEX.
King DEX – Uniswap
Since the beginning of November, daily and weekly trading volume on decentralized exchanges has taken a significant hit. Uniswap, the leading DEX, witnessed a 53% drop in weekly volumes from $26 billion to $12 billion.
But other DEXs lost much more than Uniswap. SushiSwap and Curve, the second and third largest decentralized exchanges, lost more than 74% and 42% respectively.
However, in the case of Curve, the losses were lower because the volume traded on the DEX was also smaller than that of the other two DEXs.
SushiSwap, which executed about $3.1 billion in transactions in a week in November, processed just $838 million in transactions last week.
This drop in volume on other decentralized exchanges thus gave Uniswap the upper hand. And his dominance grew. Of all DEXs on the market, Uniswap currently dominates 78% of weekly volumes, followed by SushiSwap and Curve at 6.3% and 4.8% respectively.
The same numbers in November were 61%, 22% and 6.4%, showing that while Uniswap won the most, SushiSwap was somewhat on the losing side.
Looking at the network stats, the recovery looks quite bleak at the moment as total on-chain transactions have fallen significantly. Transaction volume, which peaked at $224 million in November, stands at $15 million at the time of writing. While volume peaked at $493 million during the 23% rally on February 26; it fell down the next day.
This is also because the number of active investors at Uniswap has decreased significantly. In November 2021, approximately 2.12k investors were active in the chain, which has since fallen to just 753.
Furthermore, this week’s 22.73% plunge in price eliminates hopes of a huge gain in the coming days. Simply put, it looks like Uniswap will take some time to witness recovery.