DEX duel: Bancor Vs. Uniswap
Bancor's decentralized Bitcoin exchange is in danger of losing its dominance of Uniswap. The Bancor project, launched in 2017, was one of the largest ICO projects in the world at the time and raised approximately $ 150 million through initial coin offerings. In contrast, the Uniswap project launched in November 2018, with its $ 100,000 seed capital, funded by the Ethereum Foundation, acts like a tiny thing. As the blockchain analytics company Blocklytics has now stated, both protocols appear to be in tight competition recently.
Coindesk reports that data analysis shows that Uniswap outperformed Bancor's total ether trading volume on February 13. Uniswap reached a trading volume of $ 541,408 on February 13. On this trading day, Uniswap outperformed the Bancor Exchange by $ 196,478. However, the trade volume reached by Uniswap against Bancor was short-lived. Already on February 15, Bancor managed to regain the lead. On February 17, Bancor's traded volume was back at a dominant $ 571,395. Compared to Uniswap, that was $ 137,866 more for the Bancor platform.
Just a snapshot
Meanwhile, the available data is just a snapshot of what's happening. According to some experts, the Uniswap model could be an improved version of the Bancor Exchange. For some connoisseurs, the Uniswap algorithm is a simplification of the Bancor algorithm and seems to be cheaper, among other things, when trading and transferring cryptocurrencies. However, decentralized Bicoin exchanges seem to be undisputed only at Vitalik Buterin. At the moment, decentralized exchanges such as Bancor or Uniswap are still facing some fundamental problems such as low trading volumes, user interfaces that require getting used to, as well as high complexity and security problems in smart contracts. Scene connoisseurs nevertheless assume that decentralized exchanges will replace central exchanges in the future. Advocates like Vitalik Buterin believe that DEX will be able to operate faster and cheaper than centralized exchanges in the near future. The Ethereum founder caused a stir a few months ago with the statement that centralized Bitcoin exchanges should "burn in hell".
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