Uniswap stated about leadership in liquidity among crypto exchanges

The exchange has overtaken Binance and Coinbase, according to research by Uniswap Labs

06.05.2022 - 10:05

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What’s new? Uniswap Labs has conducted research that shows that the decentralized exchange Uniswap v3 has higher liquidity than the leading centralized exchanges Binance and Coinbase. The latest version of the exchange launched less than a year ago, allows traders to more profitably make large transactions with Ethereum trading pairs in any price range. This is reported on the company’s blog.

Uniswap Labs’s blog

Research details. The research found that there is 2 times more liquidity for ETH/USD trading pairs on the Uniswap exchange than on Binance and Coinbase, and 3 times more for ETH/BTC. Also, many stablecoin pairs have much more liquidity on the decentralized exchange than on the centralized ones. For USDC/USDT, the liquidity of Uniswap v3 is about 5,5 times higher than that of Binance. Higher liquidity is seen on large-cap pairs as well as on mid- and small-cap pairs.

What events happened before? Uniswap Labs launched a new venture capital arm to invest in Web 3.0 protocols and projects. The arm would fund teams at various stages of development, from infrastructure creation to user applications.

On 4 April 2022, a group of US investors filed a class-action lawsuit against the Uniswap exchange over violations of securities laws. Because the cryptocurrency platform had not registered as an exchange or a broker-dealer with the US Securities and Exchange Commission (SEC), scammers could execute Pump & Dump schemes, the document said.

On 19 April, Uniswap Labs began collaborating with blockchain analytics company TRM Labs to identify and block cryptocurrency wallets linked to criminal activity. The exchange was already blocking all addresses from the US Office of Foreign Assets Control (OFAC) sanctions list. The exchange officials noted that the blocking only took place on the user interface side of the app and did not affect smart contracts.

What centralized and decentralized exchanges are and how they differ can be found in GetBlock Magazine’s article.

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