Is Now the Time to Buy Uniswap?
Uniswap (CRYPTO: UNI), the No. 17 cryptocurrency in the world by market capitalization, is up more than 6% over the past week. Much of that boost appears to be coming from reports that Uniswap Labs, the creator of the Uniswap protocol, is getting closer to landing a monster $100 million funding round that would value the company at $1 billion. With this additional funding from Polychain Capital and a Singapore-based sovereign wealth fund, Uniswap Labs would be in a good position to build out the product offerings of Uniswap and further cement its role as the biggest decentralized exchange (DEX) in the world.
There is a potential problem here, though. Decentralized exchanges, just like centralized exchanges such as Coinbase (NASDAQ: COIN), rely on trading volume for success. So the middle of a crypto winter seems like a curious time to be investing in an exchange, either decentralized or centralized. The decision to buy Uniswap now clearly depends on where you see crypto trading volume headed over the next 12 months.
By nearly any metric, Uniswap is the dominant decentralized exchange for trading crypto. Depending on the source, Uniswap controls anywhere from 60% to 75% of all DEX trading volume. That's a huge market share percentage. If you look at average daily trading volume, Uniswap far outpaces any of its rivals. For example, the average daily trading volume on Uniswap is over $1 billion. The next-closest DEX competitor, PancakeSwap (CRYPTO: CAKE), logs about $200 million in average daily trading volume.
Source Fool.com
