Uniswap’s total trading volume exceeds $50 billion, and its founder estimates that it may reach $1 trillion within 8 years

According to BlockBeats, on December 15, Hayden Adams, the founder of Uniswap, tweeted that the total historical transaction volume of Uniswap exceeded $50 billion last week, reaching $51.6 billion. The number of trading pairs on Uniswap has exceeded 26,000. If Uniswap can maintain a monthly transaction volume of nearly $10 billion as in the past three months, Adams estimates that the platform's total historical transaction volume in 8 years may reach $1 trillion.

However, some crypto investors have expressed doubts about the source of most of Uniswap’s trading volume: the platform has no KYC and no coin listing review process.

A Twitter user named "cyber_hokie" once tweeted that most of the platform's trading volume came from dark web markets, money laundering, and wash trading. Although Uniswap's fixed fee plan makes wash trading costly, it has not prevented the occurrence of such transactions.

Another user named “QueenCryptoCat” speculated that nearly half of Uniswap’s trading volume may be driven by various new tokens, which ultimately constitute nothing more than rug-pulls. The user asked: “Is it possible to break the boundary between rug-pulls and legitimate trading volume?”

Since the launch of Uniswap V2 on May 18, the total locked value of Uniswap has soared from $36.5 million to $1.37 billion today, ranking fifth among DeFi protocols, according to DeFi Pulse.

Uniswap has been facing forks and clones, and its competitors have always tried to siphon off its liquidity. Currently, SushiSwap ranks sixth after Uniswap with a management scale of $1.07 billion.

According to Dune Analytics, Uniswap accounts for 59.5% of weekly DEX trading volume, followed by 0x at 12.9%, SushiSwap at 11%, and Curve at 10.2%.

Uniswap also dwarfs its rivals in terms of trader numbers, with more than 101,000 addresses interacting with the protocol in the past seven days. SushiSwap ranks second with 3,392, followed by Kyber with 1,662, Curve with 982, and 0x with 859.

The much-anticipated Polkadot-native DEX Polkaswap may also become a major competitor to Uniswap in 2021, although the project’s expected release date is currently unclear.