Soaring decentralized exchange volume suggests the DeFi craze is not over

Uniswap, the most widely utilized decentralized exchange on Ethereum, has seen explosive growth throughout the second quarter.

Throughout 2019, the decentralized finance market was relatively stagnant until the concept of yield farming and governance tokens became more popular.

After COMP's successful launch the DeFi market saw a significant spike in the emergence of governance tokens.

Many users hoping to either earn lucrative yields reaching as high as 35,000% or purchase the 'next' YFI token started to buy and sell governance tokens from decentralized exchanges.

Will DeFi volume eclipse centralized exchange volume? The advantage of Uniswap over major centralized exchanges is that users do not have to wait for token listings.

On Uniswap, users put up liquidity and create their own token pairs, which enables DeFi users to trade new tokens.

The overwhelming demand to buy and sell DeFi governance tokens caused Uniswap to gain popularity over centralized exchanges within DeFi.Growth of top decentralized exchanges year-to-date.

Currently, the decentralized crypto exchange market processes around $20 billion a month and the vast majority of the monthly volume comes from Uniswap.

Uniswap's governance token may improve long term growthAs Cointelegraph reported, Uniswap released its own governance token called UNI and the exchange took a rather unique approach to distributing the token.

The launch of the governance token is critical for Uniswap's sustainability and the official documentation allocates 17.65% of the token's supply to the team but it is vested over four years.