Witness Uniswap’s Evolution as It Heads to the NFT Market
The NFT Market Is Next for UniSwap
Uniswap has been around for three years, and in that time it has amassed a sizable user base and achieved amazing dominance in the Decentralised Exchange (DEX) market. Step by step, it is strengthening its position in the Non-Fungible Token (NFT) market with its latest innovation.
New Floating Tokens Are Now Available On Uniswap
On June 21, Uniswap published a press statement announcing the purchase of the first NFT marketplace aggregator, Genie, which basically allows anyone to search and trade NFTs across numerous platforms. Uniswap has made the following statement regarding the partnership: “”In furtherance of our aim to open universal ownership and exchange, today we are expanding our products to accommodate both ERC-20s and NFTs. Soon, you’ll be able to buy and sell NFTs across all major marketplaces with the help of our tools, starting with the Uniswap web app.
Nonetheless, this does not mean that Uniswap will be launching its own NFT marketplace in the same vein as Coinbase in May. By acting as an NFT aggregator, Uniswap will be able to centralise the two main DeFi offerings—DEX and NFTs—into a single location without bearing the burdens of operating a marketplace.
In addition, there is no need to introduce an NFT market to this sector, as the existing marketplaces have established user bases that are unlikely to switch. Looksrare, a new marketplace for trading NFTs, opened in January as evidence of this.
For the past three months in a row, Looksrare has been the most popular NFT market, surpassing Opensea each time. In January 2022, Looksrare’s monthly volumes hit $11.1 billion, an amount that Opensea has never surpassed before.
However, as time went on, its popularity waned, and with the escalation of market volatility, sales of both NFT and Looksrare fell.
Looksrare only completed NFT sales totaling $156 million as of this writing, but Opensea completed roughly 4.4 times as much, totaling $700 million.
Therefore, it would be best for Uniswap to keep to the DEX market, where it is already dominating.
The DEX of Uniswap
Since DeFi caught the attention of traders and merchants, decentralised exchanges have grown at a rate comparable to the industry as a whole. Being one of the oldest DEXs, Uniswap has successfully cornered the market and now generates at least 50% of the total weekly volume for DEXs.
In fact, despite May 2022 being one of the worst months ever for the crypto market, Uniswap nevertheless managed to attract trade volume of almost $62 billion.
During this month’s June 13 meltdown, when nearly $435 billion was lost in the cryptocurrency market in a week, Uniswap also processed trades totaling $14.3 billion.
In fact, Uniswap has been so dominant that its closest competitor, Curve DEX, which has been around for more than three years, accounts for only 24% of the entire DEX traffic on a weekly basis.
Uniswap In the Top 10
Undoubtedly, the purchase announcement boosted UNI, adding to the altcoin’s 43.85% increase and wiping off all the losses the DEX token had incurred during this month’s meltdown.
Nevertheless, UNI is still far from its peak of $45 and trading at $5.2, the altcoin would need to post a 760% rise in order to mark a new all-time high. There is still time for the market as a whole to rebound and make this a reality.
The adoption of Do Kwon’s proposal by 65% of voters, the involvement of Terra Group after TerraUSD’s precipitous decline, and the development of Ethereum Layer 2 solutions following the loss of $2 billion in a month are all examples of how the Uniswap and NFT markets, DEXs, Decentralised Exchanges, and the cryptocurrency industry as a whole are constantly adapting and developing. The market continues to grow thanks to the popularity of DEX tokens, alternative cryptocurrencies, and Ethereum Layer 2 Solutions.