Uniswap post liquidity mining
Uniswap’s token incentive program (liquidity mining) ended on the 17th of November. This led to a sudden drop (~50%) in the total value locked (TVL) in Uniswap. We went ahead and compared Uniswap’s TVL (liquidity) and GMV (trading volume) data to better understand the actual business impact of a drop in TVL.
TL;DR: Trading volume (GMV) does not seem to have a direct correlation with TVL or the liquidity deposited into the trading pools. To a certain extent, TVL is required to reduce slippage in an AMM-style DEX, but it is a less accurate metric when measuring the actual performance of a DEX.
Check out our new Uniswap dashboard for more data.Note: The ‘DeFi average’ data in the charts is calculated based on all DEXes currently listed on our site.
Total Value Locked (TVL)
- Average TVL (past 30 days): $2,500,698,287
- Uniswap’s TVL dropped ~50% on November 17th when the protocol’s token incentive program ended.
- Average TVL (past 30 days): $438,367,375
- Sushiswap’s ongoing token incentive program has managed to capture the majority of the TVL lost by Uniswap.
- Average TVL (past 30 days): $750,218,346
- The TVL migration hypothesis is further solidified when looking at the TVL data of the top DEXes from the past 30 days.
Trading Volume (GMV)
- Total GMV (past 30 days): $10,022,248,565
- The drop in TVL did not affect Uniswap’s GMV (trading volume) during the same period.
- Total GMV (past 30 days): $1,419,667,906
- Sushiswap’s trading volume (GMV) has increased steadily over time, but does not seem to directly correlate with the increase in its TVL.
- Average GMV (past 30 days): $1,452,290,015
- AMMs dominate DEX trading volumes, with Uniswap and Sushiswap in the lead.
Check out our new DEX dashboard for more data!
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