- Trading volume at Coinbase Global Inc surpasses that of Uniswap.
- Analyst says CEXs will always be essential to exchange landscape.
- Coinbase also terminated trading Binance USD on Monday.
Kaiko – a notable digital assets data provider, on Monday, confirmed that trading volume at Coinbase has now surpassed Uniswap.
Coinbase trading volumes surpass $185 billion
Trading volumes at the cryptocurrency exchange as of end of the recent week climbed to over $185 billion. That’s about double the $93 billion on its decentralised counterpart, Uniswap.
Following the collapse of centralised platforms, including the FTX exchange last year, many expected an increased shift to decentralised exchanges (DEX). But that’s “a bit premature” as per Conor Ryder’s (Kaiko research analyst) response to CoinDesk on Twitter.
Average investor is still put off by worse user experience on some of these DEXs, compared to more straightforward experience on CEXs. I think CEXs will always be an essential part of the exchange landscape.
DEX trading volumes had once hit $113 billion
It is noteworthy here that at one point last year, trading volumes at Coinbase and Uniswap were roughly the same.
Following the FTX fiasco in November, volumes on decentralised exchanges were reported to have touched a whopping $113 billion. In comparison, they’re unlikely to top even $100 billion this month.
Last week, the crypto exchange reported better-than-expected revenue for its fourth financial quarter. Also on Monday, Coinbase terminated trading of Binance USD, saying it fails to justify listing standards. Its shares are currently up more than 75% versus the start of the year.
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Coinbase, the San Francisco-based cryptocurrency exchange, has now nearly doubled the trading volume of Uniswap, the popular Ethereum-based decentralized exchange (DEX). According to data from CoinMarketCap, Coinbase has an average daily trading volume of $13.1 billion, while Uniswap’s trading volume is just $7.02 billion.
The Coinbase surge is being driven by an increase in institutional trading. Coinbase’s institutional trading offerings have grown significantly in recent months, leading to a surge in daily trading volume. Coinbase has added new features and services to its platform, such as the Coinbase Pro platform, which is tailored to institutional investors. The platform has also secured insurance coverage for its digital assets and has added support for a variety of cryptocurrencies.
Uniswap, on the other hand, has seen its trading volume decline from its peak in May 2020. While the exchange initially surged in terms of trading volume due to its launch on the Ethereum blockchain, the surge in volume has been waning since then. Despite this, Uniswap has become one of the leading DEXs in the cryptocurrency market, with more than $7 billion in trading volume in the past 24 hours.
The growth of Coinbase has been fueled by the growing demand for cryptocurrency trading from institutional investors. The influx of institutional investors has led to an increase in liquidity and better pricing on the platform, making Coinbase an attractive platform for institutional investors who are looking to trade digital assets.
Coinbase’s surge in trading volume has pushed it past Uniswap and cemented its position as one of the leading cryptocurrency exchanges in the market. The exchange is now well positioned to continue its growth in the upcoming months as institutional investors continue to pile on, attracted by its safety and security as well as its attractive trading offerings.