Decentralized exchange Uniswap has got the attention of mainstream media as Bloomberg called it an industry leader by comparing it with the largest cryptocurrency exchange Binance.
Decentralized finance (DeFi) remained the top winner in the crypto space over recent months, and it is still embracing new record investments. Due to the DeFi craze, the price values of DeFi tokens have surged significantly.
Comparison between Uniswap and Binance
By making a comparison between decentralized exchange Uniswap and centralized exchange Binance, Bloomberg says there are 845 tokens on Uniswap while there are 820 coins over Binance. Over Uniswap, everyone can list a token, and so, many fake or scam tokens have come out. However, Uniswap has low a user base as it has currently 50k-100k users while there are 15 million users registered at Binance.
Uniswap grabs the highest market share (24%) as the total value locked over the exchange has touched $2.67 billion.
Governance Voting System
DeFi site Dharma has proposed governance voting for Uniswap, which may give a shocking dent to its decentralization nature as power will be moved to few whales. At press time, 30 million votes were delivered in favor, and 643k cast in against. The voting for governance will end in October 2020, but it is criticized heavily by the crypto community. A Twitter user expressed his anger by saying,” It’s now the job of the users to make sure that governance doesn’t fuck the whole thing up.”
Over the last few weeks, DeFi tokens lost significant value as a result of the high selling rate. UNI coin, the native token of Uniswap also suffered badly and plunged below $3, but the recent rally again pushed it above $3.
In September, the UNI token was standing at its highest position of $8, but then it dumped 60% of its value in the DeFi crash. Other DeFi coins also showed bearish results as SUSHI lost 90% of its value since all-time high value.
According to famous crypto experts, the DeFi craze has come to an end, and incoming regulations are imminent.