Uniswap Has Deeper Liquidity Than Coinbase & Binance, Uniswap Co-Authored Study Claims
According to a new study, popular decentralized exchange (DEX) Uniswap (UNI) has deeper liquidity in several important crypto trading pairs than even the largest centralized exchanges such as Binance and Coinbase.
The study, conducted by Dextools.io and authored by Uniswap co-founder Hayden Adams, found that the DEX had deeper liquidity than Coinbase and Binance in seven out of 10 critical trading pairs.
In particular, the study found that UNI-ETH (Uniswap’s ETH/ERC20 token pool) had almost 10 times the liquidity of Binance’s ETH/USDT pool and over five times the liquidity of Coinbase’s ETH/USDC pool.
The study also found that Uniswap’s liquidity was “on par or better” than Binance and Coinbase in the BTC/USDT, LTC/USDT, and ETC/USDT markets.
Interestingly, the study found that Uniswap’s liquidity was deeper than Binance and Coinbase in the ETH/USDC market even though Coinbase is one of the largest USDC issuers.
“The Protocol’s greater market depth demonstrates that crypto-native [automatic market maker – AMM] market structure can surpass order-book exchanges and transform traditional financial market structure to be more liquid, stable, and secure,” the decentralized exchange wrote in a comment on Twitter.
The research was conducted by Dan Robinson, head of research at crypto investment firm Paradigm, as well as Gordon Liao who is a researcher at Uniswap. The two compared the order books of Uniswap and Binance to study the liquidity of both exchanges.
Robinson and Liao looked at the order book data for ETH/USDC from July 28th to August 3rd and found that Uniswap’s order book was deeper than Binance’s in every time interval they tested.
In the study, Robinson and Liao found that “Uniswap’s order book is on average about twice as deep as Binance’s over the period considered.” The researchers also looked at Coinbase’s ETH/USDC order book and found that it was even shallower than Binance’s..
Uniswap has been growing in popularity in recent months as DeFi (decentralized finance) protocols have become more popular. Uniswap is a decentralized exchange built on the Ethereum blockchain that allows users to trade ERC20 tokens.
The study’s findings are significant because they show that Uniswap is a more liquid exchange than both Binance and Coinbase, which are two of the largest cryptocurrency exchanges by trading volume. This is likely due to the fact that Uniswap is a decentralized exchange built on
The report added that market depth is also higher across all price levels on Uniswap than on the major centralized exchanges, stating that this makes it “even more advantageous for users to execute larger trades on Uniswap v3 relative to centralized exchanges.”
The study concludes by stating that Uniswap’s “rapid growth and adoption” is likely to continue, given the advantages it has over centralized exchanges.
These findings come as no surprise, given that Uniswap is the largest decentralized exchange by trading volume and has seen rapid growth and adoption since its launch in 2018. With its superior liquidity and trade execution advantages, it is likely that Uniswap will continue to dominate the decentralized exchange space in the years to come.
The findings of this study are very interesting and seem to point to a bright future for Uniswap. It will be interesting to see how this platform develops over time and if it can maintain its dominance in the decentralized exchange space.