Uniswap vs Kyber: Analysis of the Top Two Decentralized Exchanges

Uniswap and Kyber are currently two of the top decentralized exchanges (DEX) in the cryptocurrency market, strictly speaking, they are considered exchange platforms. The DApp data analytics firm DappRadar has conducted an analysis of the recent trading volumes and usage trends of these two DEX platforms.

Uniswap was launched in November 2018 and operates as an on-chain protocol based on Ethereum. It executes trades through liquidity pools rather than order books, a feature that has evidently contributed to Uniswap's leading position.

Kyber, launched in September 2017, is currently the second most utilized DApp in the DEX category. It is an on-chain liquidity protocol that allows token holders to act as reserves to provide liquidity to the trading network.

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Key Points

• The most popular trading pairs on DEX are ETH/DAI and ETH/USDC.
• As of 2020, DAI accounts for 33% of the trading volume on two DEXs, while USDC accounts for 19% and 22% respectively.
• Stablecoin USDC continues to grow on Kyber.
• HEX was the token with the highest trading volume on Uniswap in May, with HEX/ETH accounting for 47% of the trading volume in May.
• Kyber's native token KNC only accounts for 7% of the total trading volume in May.

User Trends

As of May, Uniswap's daily active users have exceeded 3,000, a 101% increase compared to January. Kyber has seen a similar growth rate during the same period but still hovers around 1,500 users.

Trading Volume Trends

Uniswap's trading volume has grown by 30% compared to January and reached a peak on May 17. Kyber, on the other hand, has declined by 44% compared to January. Uniswap has maintained a clear lead after entering the second quarter of this year.

Comparison of Trading Pairs

DAI and USDC are the most frequently traded stablecoins in both DEXs, ranking highest among the top six trading pairs.

DAI

Stablecoin DAI accounts for 33% of the total trading volume on Uniswap and Kyber. The trading volume of DAI/ETH and ETH/DAI on Uniswap is higher than that on Kyber.

MakerDAO is the primary reason for the growth of the ETH/DAI trading pair on Uniswap. Uniswap aims to improve capital efficiency and therefore can offer better prices compared to other platforms.

USDC

USDC accounts for 19% of the total trading volume on Uniswap and 22% on Kyber. Trading of USDC is more frequent on Kyber. The reason for the increase in USDC trading volume is that MakerDAO approved USDC as the third collateral after ETH and BAT in mid-March.

Analysis shows that Uniswap remains the top DEX, while Kyber, ranked second, demonstrates stable growth in trading pairs, active users, and trading volume.

Although the trading volume of Uniswap and Kyber still lags behind centralized mainstream exchanges, with Uniswap V2 launching on the Ethereum mainnet on May 18 and Kyber set to undergo a major upgrade called "Katalyst" at the end of June, DEXs have the potential to provide the blockchain's first killer application. Which project will emerge as the leader?