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Uniswap reaches $100B in cumulative volume amid DeFi explosion

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Uniswap’s decentralized exchange reached a major milestone on Monday, as cumulative trade volumes surpassed $100 billion in the wake of the DeFi boom. 

Hayden Adams, Uniswap’s CEO, tweeted Monday that his platform became the first decentralized exchange to process over $100 billion in transactions. Using data from Dune Analytics, Adams shows cumulative volumes of $101.5 billion as of Feb. 15. The chart highlights Uniswap’s dramatic growth since mid-2020 when the first DeFi bull market began.

Uniswap processed over $1.2 billion worth of transactions in the last 24 hours, according to Coingecko, placing it among the largest exchanges for cryptocurrency trading.

Decentralized exchanges, also referred to as DEXs, have seen their volumes grow considerably over the past eight months. They now threaten centralized-exchange dominance due to the rapid uptake of DeFi governance tokens.

The upsurge in trading activity has come at a cost, though. As Ethereum-based DEXs and on-chain transactions continue to grow, so too are the transaction fees. Cointelegraph recently reported that transactions on Uniswap can cost over $100 during peak overload periods.

Uniswap has emerged as a critical piece of the DeFi sector thanks to its first-mover advantage and ability to accommodate new token projects. In late 2020, the exchange airdropped 400 UNI tokens to users that had previously contributed to its liquidity. At the time of the airdrop, the 400 UNI were worth around $3,500. The tokens are now worth a combined $8,400.

More than $57.6 billion has been locked into DeFi protocols, according to the latest industry data.

Uniswap reaches $100B in cumulative volume amid DeFi explosion

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Pantera says they’re placing a heavier bet on DeFi than the rest of the market

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In an October 6 webinar, Pantera Capital disclosed that their Digital Asset Fund intends to invest more heavily into DeFi assets than the rest of the market. 

Source: Pantera Capital.

Pantera’s co-chief investment officer, Joey Krug said that unlike other funds that allocate most of their portfolios to stores of value like Bitcoin (BTC), his company is prepared to place its primary bet on DeFi:

“And so if you look at portfolio construction, we can see that relative to the market, we’re taking a different bet with the Digital Asset Fund. Most of the market is basically payments and store of value. So things like Bitcoin, Bitcoin Cash, etc. …> For the most part, we’re much more overweight, smart contract platforms, decentralized finance, open finance, whatever you want to call it is we think that’s where that sort of growth is going to be seen this bull market.”<!—->

Krug also noted the rapid pace of growth in the DeFi space — both in terms of the value locked and trading volume on decentralized exchanges. During the webinar, a Pantera Capital representative also confirmed that they believe DeFi is the future of finance and not just another bubble. 

Source: Pantera Capital.

Meanwhile, Pantera CEO Dan Morehead opined that the influx of fiat into the economy has pushed crypto prices higher and that Pantera expects an even stronger rally in the near future:

“We think the next two or three years [there’s] going to be a massive rally.”

Pantera says they’re placing a heavier bet on DeFi than the rest of the market

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Jamie Dimon Warns of 5% Treasury Yields

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Not content with a previous warning investors should brace for U.S. yields of 4 percent, Jamie Dimon went one further at the weekend, suggesting 5 percent was a distinct possibility.

The JPMorgan Chase & Co. chief executive officer said Saturday people should be prepared to deal with the benchmark 10-year bond yield at 5 percent or higher.

“I think rates should be 4 percent today,” Dimon said Saturday at the Aspen Institute’s 25th Annual Summer Celebration Gala. “You better be prepared to deal with rates 5 percent or higher – it’s a higher probability than most people think.”

The 3 percent level is still providing stiff resistance for the 10-year Treasury yield this year. It briefly rose through the mark last week before falling back for the fourth time this year. That’s despite a U.S. jobless rate below 4 percent, economic growth above 4 percent, and a rare surge in late-cycle government borrowing.

The current bull market could “actually go for 2 or 3 more years” because the economy is still doing quite well and markets usually turn right before the economy, Dimon said.

Cyber attacks are “probably the biggest risk” to the U.S. today, though banks are quite well protected, Dimon said.

“We’re very, very protected,” he said.

The JPMorgan CEO reiterated comments made last year on Bitcoin, calling cryptocurrencies a “scam” and saying he had “no interest” in the world’s largest digital currency. He suggested governments may move to shut down the currencies, because of an inability to control them.

Dimon had urged investors to prepare for higher rates in an interview in May, given the possibility growth and inflation could prove fast enough to prompt the Federal Reserve to raise interest rates more than anticipated, and the increase in financing by the U.S. Treasury.

    Read more: https://www.bloomberg.com/news/articles/2018-08-06/dimon-doubles-down-on-higher-u-s-yields-call-with-5-warning