Uniswap trading volume rises 10% as Apollo Capital touts the promise of decentralized derivatives

Apollo Capital CIO Henrik Anderson believes on-chain derivatives are the next DeFi boom.
He attributes the speculation to the increasing popularity of decentralized spot trading fueled by the FTX collapse.
On the other hand, Uniswap attributes its success to providing more liquidity compared to CEXs such as Binance and Coinbase.

Uniswap trading volume is positive, positioning UNI among the few networks showing optimism. Despite its number 24 position in the list of cryptocurrencies by market capitalization, the amount of crypto traded over the Uniswap network over the last 24 hours has outperformed those on the Bitcoin (BTC) and Cardano (ADA) networks.

Also Read: Larry Fink creates alignment between BlackRock and the purpose of Bitcoin as the race for ETFs continues

Uniswap joyrides the expected boom among DeFi players

Uniswap, which debuted in 2018, is the leading decentralized exchange (DEX) in the Ethereum (ETH) ecosystem, allowing users to seamlessly convert any ERC-20 token to any other ERC-20 token. As the first choice for many new Ethereum-based project launchpads, an expert has predicted decentralized derivatives such as Uniswap taking center stage in the next DeFi mania.

In a statement to Cointelegraph, Apollo Capital chief investment officer (CIO) Henrik Andersson said that on-chain derivatives would be the next big growth sector in decentralized finance (DeFi). Based on his expert analysis, DEXs have steadily gained market share from their centralized exchange counterparts, with the trend being more pronounced since the collapse of Sam Bankman-Fried's cryptocurrency empire, FTX.

According to Andersson, the FTX incident induced fear among investors for centralized exchanges, with the overflows of this FUD boding well for decentralized exchanges. Uniswap is first in line among the DEXs that benefited.

Uniswap attributes the success to liquidity

While Apollo Capital CIO attributes the DEX’s success to investor fear and, therefore, avoidance of centralized exchanges, Uniswap told Bloomberg that it is all because of liquidity, as the network "lets traders execute large trades in the preferred price range."

4/ Despite its relative infancy, DeFi has seen deeper liquidity than large centralized exchanges like Binance and Coinbase and continues to act as one of the most efficient and cost effective ways to trade tokens. https://t.co/xvgPkBfCEX
— Uniswap Labs (@Uniswap) July 3, 2023

Notably, there has been an influx of liquidity into decentralized finance compared to centralized alternatives such as Binance and Coinbase, as DeFi presents among the most efficient and cost-effective ways to trade tokens.

Uniswap trading volume rises 10%

The success of the Uniswap network is evidenced in the notable rise in trading volume over the last 24 hours, edging closer to a 10% gain, while the rest of the crypto players show the opposite. Notably, UNI, at position 24 on the CoinMarketCap list of cryptocurrencies by trading volume, has outperformed Bitcoin and Cardano at positions one and seven, with +1.8% and -0.24%, respectively.

As reported, the Uniswap decentralized exchange recently recorded 200 million unique transactions, a sign of increasing interest in the network among market players.

Now that’s a whole lot of swapping

Uniswap Protocol has officially seen 200M unique transactions pic.twitter.com/1TO3MyIphx
— Uniswap Labs (@Uniswap) July 5, 2023

With its positive rise in trading volume, Uniswap leads the list of top 10 DEXs on the Ethereum chain with a 24-hour trade volume of $391 million.

With this bullish outlook, analysts speculate an imminent trend reversal for the Uniswap price. Read on for key levels to watch as UNI readies for a recovery.

Uniswap gears up for recovery after successfully processing 200 million unique transactions

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