The DeFi sector marked yet another milestone, as the total value of collateral locked in the Uniswap`s protocol surpassed $2 billion. The all-time high managed to give the crypto markets some sort of a relief as the total value locked (TVL) in the DeFi sector reached a level near its all-time high of $11 billion.
The value movements are in contrast with last month’s cooling-off period for the crypto sector. Uniswap managed to surpass Maker and take over the leading position in DeFi protocols, with daily volumes reaching as high as $276 million.
Also, Uniswap managed to regain all of the liquidity that SushiSwap has taken. Meanwhile, Uniswap’s TVL values increased nearly eight times since last month, reaching $2,07 billion, making the protocol one of the best performing in the DeFi realm.
Source: DeFi Pulse
The majority of Uniswap’s liquidity is coming from the four liquidity pools the protocol is using. However, the ETH/WBTC pool seems to have a leading edge over the other three pools, with nearly 30% of the total liquidity locked in it. Collateral locked in the ETH/DAI, ETH/USD, and ETH/USDT pools seem to be split almost equally.
However, UNI farming would continue to November 17. Crypto experts are considering that after the deadline the liquidity would be transferred to more lucrative pools unless Uniswap comes up with a better offer. Otherwise, liquidity providers would be able to only earn the 0.3% trading fee, which is low, compared to other DeFi platforms.
Pricewise, UNI managed to secure its earnings and hold a trading level at $4.56 as of press time. For short periods during the past week, UNI spiked above $5, but prices kept going sideways, without massive price gains or losses. In contrast, SushiSwap’s token crashed, losing 80% of its value in just a couple of days, currently trading at $1.34, after a high of nearly $11 on September 1.
Meanwhile, a report from Glassnode showed that Uniswap’s governance is rather centralized, with one of the largest token holders being Binance. Glassnode also emphasized that 40% of the token supply has been allocated to Uniswap`s team members, investors and advisors, which arguably questions the decentralized nature of the UNI token.