Despite Uniswap`s TVL Upgrade, The Curve Still May Not Be the Biggest DEX

Uniswap may have fallen from its position as the largest decentralized exchange, depending on how you define it.

According to the data compiled by DeFiLama, Curve Finance has surpassed Uniswap in terms of locked total value (TVL).

As of publication, Curve had a TVL of approximately $3.7 billion, marginally outpacing Uniswap's $3.4 billion installment.

TVL is calculated by compiling the number of assets invested in a particular smart contract. The commonly referenced metric represents the funds submitted to a protocol to perform the daily market function, including spending and borrowing.

This figure is usually inclined towards volatility and is greatly influenced by market conditions. Traders, therefore, typically use TVL as a measure of many to assess the overall health of a protocol.

Other indicators include the number of unique active wallets on a protocol and the market capitalization (Deconstructed equivalent of the market capitalization of tradfi). DappRadar data shows that Uniswap V3 has an estimated 440,000 unique active wallets in the last 30 days.

There is only one part of the curve: 13,700.

Curve's trading volume also seems to be lower than that of Uniswap, whose seven-day volume is $1.2 billion compared to Curve's $28.3 billion.

Although it is too early for Curve to declare its dominance over Uniswap, which has long been one of the largest players among decentralized exchanges (Decs), the general sentiment around DEFI protocols has been rising since the collapse of FTX.

In a report published by Messari, with confidence in the collapse of centralized exchanges, several decentralized silver linings are highlighted. DEX users were more active, and both Uniswap and Curve gained Sunday share during this time.

"Curve's unique users reached an all-time high in November," the report said. “There was an increase of 11% compared to the all-time high in May 2022.”

But DeFi protocols were not damaged by the bear market.

Curve's tvl dropped significantly from $17.5 billion to $9.1 billion in a few days after the usdt was fixed in May. And it was weighed down by STETH depegging in June 2022, when tvl fell from $ 8.6 billion to $ 5.3 billion.

Recently, FTX contagion has spurred another TVL decline: from $ 6 billion to $ 3.7 billion.

Source: blockworks.co