Uniswap Is Now Also Available on the BNB Chain
Competition among decentralized crypto exchanges (DEX) is heating up: market leader Uniswap (UNI) is now also rolling out on the Binance Chain and attacking PancakeSwap (CAKE) there. Experience shows that capital provided to DeFi is willing to quickly change its starting points if more returns are tempting elsewhere. Uniswap’s move towards BNB Chain facilitates such strategic decisions.
Uniswap (UNI) is the number one decentralized crypto exchange (DEX), with a daily turnover of more than $2 billion, and until now has organized more than 90 percent of its trades in the Ethereum (ETH) ecosystem.
But now Uniswap is also grabbing market share in the Binance Chain(BNB) ecosystem, as DEX went live, on March 15th, on the BNB Chain as well. Via Twitter, Uniswap celebrated the big move, which was preceded by a referendum on self-governance with UNI as the ballot.
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It was touted that Uniswap could take up to 50 percent of the market share from major competitor PancakeSwap (CAKE) on the BNB Chain
PancakeSwap experienced a run after Uniswap joined the ecosystem, according to CoinMarketCap data, and saw an increase in daily revenue of more than 700 percent. One reason for this is likely to be that PancakeSwap is currently preparing the launch of its version 3 and in the run-up, there is the opportunity to secure bonuses by providing liquidity.
In the medium term, it will be necessary to observe whether existing Uniswap users are also willing to invest in BNB Coin. The opening of Uniswap to Polygon (MATIC) in 2021 was sobering and remained a niche story. It is also an open question whether users of PancakeSwap will switch to Uniswap and Ethereum. Ethereum’s ecosystem clearly occupies the top spot with just over $27 billion in invested capital, ahead of BNB Chain (also known as Binance Smart Chain) with just over $5 billion.
Conclusion: Uniswap becomes more variable – BNB Chain could also benefit from new entrants
Experience shows that capital provided to DeFi is willing to quickly change its starting points if more returns are tempting elsewhere. Uniswap’s move towards BNB Chain facilitates such strategic decisions because they can now be made conveniently and quickly in one interface.
PancakeSwap, with its current bonus program, is already hinting at seeing increased competition as an opportunity. This means that DeFi investors now have the opportunity to directly compare the conditions and range of products offered by Uniswap and PancakeSwap in order to make good decisions.
(Featured image by Kanchanara via Unsplash)
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