What happened
Popular decentralized-exchange Uniswap (UNI -1.12%) saw continued upside momentum today, surging 12.4% over the past 24 hours, as of 10:30 a.m. ET. This move is a continuation of very strong momentum over the past week, which saw Uniswap climb more than 35%. This price action has propelled Uniswap into the 18th spot in terms of cryptocurrencies by market capitalization.
Uniswap's announced launch on Polygon last week has resulted in significant interest among investors looking for growth among decentralized exchanges.
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So what
Uniswap, in all its forms (there are multiple versions of this exchange), remains the largest decentralized exchange out there in terms of market share. Investors banking on the growth of decentralized exchanges within the crypto world have reason to believe that Uniswap could continue to grow its market-share lead over the competition.
Notably, Uniswap's dominant market position has come as a result of this decentralized-exchange's prominent status in the Ethereum ecosystem. Expanding to other blockchains such as Polygon opens up more avenues for growth. Polygon's $5.75 billion in total value locked provides significant growth prospects for decentralized exchanges looking to spread their wings onto other blockchains, such as Uniswap.
Now what
Uniswap's status as top dog in the decentralized-exchange world is one that investors have learned to not take for granted. Other fast-growing exchanges are popping up, challenging Uniswap's status as the leader in this top DeFi niche.
That said, it's clear that the developer team behind Uniswap and the owners of UNI governance tokens believe that diversifying out beyond the safe confines of the Ethereum blockchain is a smart move. In addition to Polygon, Uniswap is also in beta on another layer-2 blockchain, Arbitrum.
Investors intrigued by Uniswap's growth potential will certainly want to monitor how Uniswap performs relative to the competition on these blockchains moving forward.
