ETH locked in Uniswap has increased to $1.6 billion right after Uniswap launched its native governance token UNI. Uniswap saw the value double in the past 48 hours after the launch as we reading more in the latest ethereum news today.
The ETH locked in Uniswap hit $1.6 billion in two days and the increase was spiked by Uniswa’s release of the UNI token. SushiSwap on the other hand saw its TVL drop by 30% in the same two day period. the popular ETH-based decentralized exchange showed huge growth in trading volume in recent months with boosts in the amount of money flowing into the platform after the launch of the governance token UNI.
@UniswapProtocol has come stampeding up the leaderboard and is back at #1 Total Value Locked in #DeFi.
Check out the TVL chart at https://t.co/cpEfG0qRDr pic.twitter.com/3N6dwJEtIG
— DeFi Pulse (@defipulse) September 18, 2020
Before the decentralized finance protocol such as curve Finance or Aave had unseated the top of the total value locked, the charts on DeFi pulse show that 48 hours since the launch of UNI, Uniswap almost double the amount of ETH locked in the past day. The figure is now standing at about $1.6 billion worth of ETH.
The total value locked is a metric that shows comparisons between the relative popularity of the Defi protocols with the value locked showing where the attention from the DeFi community is focused at a given time. DeFi is an umbrella term that describes the emerging sets of decentralized applications that are built on blockchains such as Ethereum. Defi also lets users take loans using digital asset holdings as collateral and earn interest or other rewards by locking cryptocurrencies in smart contracts. This way, it’s easy to facilitate trading between different tokens and other operations.
The TVL on uniswap was set at below $750 million two days ago. It has doubled since then and the increase is likely induced by the introduction of the liquidity incentives allowing them to receive UNI tokens for providing liquidity to designated pools o decentralized exchanges. The growing number of Defi projects released governance tokens in the past few months. These tokens are the most important component of decentralized and distributed governance where the community is given a blockchain-based application to use the tokens and to vote.
SushiSwap for example, a clone of Uniswap made possible by the public nature of smart contracts, saw a value locked of more than $1.4 billion after releasing the governance token scheme on their own, eyeing to draw trading volume and user liquidity away from the platform and onto their own platform. Uniswap had not yet released its own token at that time. after the UNI token launch, however, the value locked in SushiSwap fell by 30%.