While much of the industry’s attention over the past year has gravitated toward stablecoins, tokenized treasuries and institutional onramps, the team behind Velodrome and Aerodrome says the real power struggle in crypto is unfolding elsewhere: in decentralized exchanges (DEXs). Alex Cutler, the CEO of Dromos Labs, the main developer firm behind Aerodrome and Velodrome, described the exchange layer as "the second most important layer" to the onchain economy in an interview with CoinDesk. That view is now ...

Core Insights - Bitwise has registered a Delaware statutory trust named Bitwise Uniswap ETF, indicating a potential future launch of an ETF linked to Uniswap [1] - The registration follows the SEC's closure of its investigation into Uniswap Labs in February 2025, which examined whether activities related to the decentralized exchange violated U.S. securities laws [2] Legal and Regulatory Considerations - Analysts note that the focus has shifted to structure, liquidity, and trade execution as legal uncertainties diminish, with any ETF needing to demonstrate clear pricing and sufficient volume [3] - Approval for the ETF will likely depend on regulators' assessment of Uniswap's decentralization and the reliability of its on-chain liquidity [3] Governance and Internal Issues - Uniswap is recognized as a highly liquid decentralized exchange but is currently facing challenges related to fragmented volumes and internal governance issues [4] - There is growing scrutiny over governance, with community members arguing that tokenholders gain limited economic benefits from governance rights [5] - Tensions have escalated following Uniswap Labs' launch of Unichain without DAO approval, leading to concerns about the concentration of control [5] Recent Developments in Governance - The UNIfication governance vote merged the Uniswap Foundation into Uniswap Labs, which critics argue has weakened DAO independence [6] - UNI's market performance has suffered, trading around $4.78, down approximately 60% over the past year [6] Market Performance - UNI's market cap has decreased by $4.15 billion, dropping it to the 32nd position among the largest crypto assets [7] - Despite recent price weakness, Uniswap processed about $859 million in trading volume in the last 24 hours, and the protocol facilitated nearly $1 trillion in volume over the past year [8][9] Sentiment and Potential Price Movement - Sentiment data indicates a potential short-term price reversal for UNI, with high negative commentary suggesting that retail selling may be exhausting [8]

Core Insights - The core value of decentralized exchanges (DEX) has evolved from merely proving that transactions can occur without centralized platforms to prioritizing user experience as a critical factor for growth [2][4]. Industry Trends - Historically, DEXs have been perceived as difficult to use, with many still facing issues such as fragmented trading, data analysis, and liquidity management across different protocols, leading to a cumbersome user experience [3][5]. - The focus of competition among DEXs is shifting from "how decentralized" they are to "how usable" they are, emphasizing the need for improved user interaction without compromising security or transparency [5][9]. User Experience Innovations - New projects are emerging that aim to systematically enhance the decentralized trading experience rather than just adding more features [6]. - UniversePro exemplifies this trend by treating the trading experience as a comprehensive system, integrating various functionalities to minimize user friction and streamline the trading process [7]. Commitment to Decentralization - UniversePro maintains a non-custodial architecture, ensuring that user assets remain under personal control while transactions and settlements occur on-chain, highlighting that improved user experience should stem from clearer system design rather than introducing centralized trust [8]. Future of DEX - As the market matures, the focus of discussions around DEXs is transitioning from feasibility to long-term usability, with user experience becoming a vital criterion for mainstream adoption [9].

Decentralized exchange (DEX) Hyperliquid is once again in the limelight after clocking a massive $40.7 billion in trading volumes last week. As a result, it has managed to move ahead of its competitors like Aster and Lighter. This comes as the demand for leverage and decentralization remains a hot thing in the crypto space. Hyperliquid Grabs Limelight with Sharp Trading Volume Surge Over the past seven days, Hyperliquid processed roughly $40.7 billion in perpetual futures trading volume, according to Cr ...

Core Insights - LIT, the token of decentralized perpetuals exchange Lighter, experienced a significant price drop of approximately 22.2% from its post-launch high of $4.04 to around $2.62, marking its lowest level since launch due to heavy selling from early recipients and leveraged traders [1] Trading Activity - Despite the price drop, LIT's trading volume surged to 13.43 million, nearly three times the previous day's volume, indicating increased market involvement driven by volatility and short-term speculation rather than long-term accumulation [2] - LIT is currently trading about 35% lower than its peak, entering a post-launch correctional phase with ongoing price discovery [3] Airdrop Analysis - Approximately 198.86 million LIT tokens were initially received by participants in the airdrop, with existing balances in wallets dropping to around 183.29 million, indicating a significant decrease in the airdropped supply [3] - Only 7.77% of wallets increased their holdings, while 45.88% reduced their balances and 46.35% made no changes, highlighting that selling activity has outpaced accumulation [4] - In total, about 150.34 million LIT, or roughly 75.6% of the airdropped tokens, remain held, while around 48.52 million tokens, or 24.4%, have been sold or transferred [4] Market Sentiment - The trading imbalance suggests that buy-side conviction has lagged behind sell-side activity during the early trading window [5] - Derivatives market data indicates consistent aggressive selling of LIT perpetual contracts across multiple time frames, reinforcing the current market sentiment [6]

Core Insights - Uniswap Labs has implemented a significant governance plan by permanently burning 100 million UNI tokens, valued at $600 million, to align the protocol's revenue with the token's value [1][2] Group 1: Governance and Token Mechanics - The token burn was executed under the "UNIfication" proposal, which received overwhelming support and marks a shift from a fee retention model to a deflationary framework [2][3] - The new structure utilizes protocol fees to buy and burn UNI tokens, aiming to reduce the circulating supply and increase scarcity over time [3][4] - In Uniswap v2, liquidity providers earn 0.25% per trade, with 0.05% allocated to the protocol, while in v3, they will route either one-fourth or one-sixth of their fees to the protocol depending on the fee tier [3][4] Group 2: Organizational Changes and Future Plans - The UNIfication initiative also involves restructuring Uniswap's organizational setup, with employees from the Uniswap Foundation transitioning to Uniswap Labs, funded by the treasury's growth fund [4][5] - This consolidation aims to enhance development and operational support for the protocol's expansion, with potential future revenue mechanisms being considered through separate governance processes [5] Group 3: Market Response and Performance - Following the token burn announcement, UNI experienced a positive market response, rising over 6% to a multi-week high of $6.38 [6] - Uniswap remains a leader in decentralized exchange trading, processing more than $60 billion in trading volume over the past month across 40 blockchain networks [6]

Core Insights - Solana-based decentralized exchanges (DEXes) have reportedly surpassed trading volumes of major centralized exchanges like Binance and Bybit during late 2025, indicating a significant shift in crypto price discovery directly onto the blockchain [1][2] - The on-chain activity and trading volumes on Solana DEXes, including Jupiter, Orca, and Raydium, have reached new records, driven by traders seeking faster and cheaper trading venues [1][3] Trading Volume and Performance - Solana DEX volume has consistently matched or exceeded that of major centralized exchanges during the final quarter of 2025, with Raydium clearing over $100 billion in monthly volume for three consecutive months and total Solana DEX volume surpassing $120 billion in certain months [3] - Daily trading volume on Solana DEXes has at times exceeded $3.8 billion, outperforming the combined volume of Ethereum and Base [7] Advantages of Solana DEXes - The advantages of Solana DEXes stem from their speed and low transaction fees, with the Alpenglow upgrade enabling transaction finality under 100 milliseconds, attracting high-frequency trading firms and algorithmic traders [5][6] - The transition to the Votor consensus protocol has further reduced settlement latency, making sub-100ms finality achievable in practice [6] Impact of Stablecoin Inflows - Significant inflows of stablecoins, such as over $5.5 billion in USDC minted directly on Solana in one month, have created a "permanent bid" for on-chain trading, allowing traders to save an estimated 0.10–1% per trade compared to centralized venues [7]

The Hyperliquid Foundation is moving to permanently remove roughly $1 billion worth of its HYPE tokens from supply. This bold action comes as the token’s price slides to seven-month lows, struggling against a wave of doubt. The burn is a direct answer to fierce competition from newer platforms that are attracting traders with aggressive reward campaigns. What Does This Token Burn Actually Mean? First, let’s quickly define our terms. Hyperliquid is a major decentralized exchange (DEX) for navigating mark ...

Core Insights - Hyperliquid is facing scrutiny due to a $314 million token unlock, which raises concerns about transparency, market stability, and tokenomics management [1] - The unlock will release 9.92 million HYPE tokens, representing 2.66% of the total supply, in a single "cliff unlock" [1] Community Concerns - The token unlock has sparked discussions within the Hyperliquid community, with some users expressing unease due to a month-long decline in HYPE, which has dropped over 23% [2] - An open letter from a community member urged the team to communicate with holders before the unlock, highlighting emotional scars from past unlock events [3] Market Reactions - BitMEX co-founder Arthur Hayes noted that the market is already pricing in dilution risk, as indicated by Hyperliquid's declining price-to-fully diluted valuation ratio since July [4] - Some community members believe the team is not obligated to disclose plans for the unlocked tokens, arguing that the allocation amount is sufficient [4] Diverging Opinions - While some labeled the open letter as "desperation," others defended the contributors' right to their share, emphasizing Hyperliquid's strong performance and high trading volume [5] Market Performance - HYPE has struggled to maintain bullish momentum, down 14.2% in the past week and over 22% in the last 14 days, currently trading nearly 46% below its all-time high of $59.30 [6]

Core Insights - HumidiFi, the largest decentralized exchange on Solana by one measure, is set to launch its token WET in November through an initial coin offering (ICO) [1] - The exchange has achieved significant growth, processing $33.3 billion in trade volume over the past 30 days, accounting for nearly 25% of all trade volume on Solana [2] - HumidiFi operates as a prop automated market maker (AMM), allowing it to manage liquidity effectively and offer competitive prices compared to traditional decentralized exchanges [3][4] Token Launch Details - WET will be the first token to utilize Jupiter's Decentralized Token Formation (DTF) platform, which will provide tiered access for investors [5] - The ICO will allow for whitelisting of certain recipients, allocation for Jupiter stakers, and public investment on a first-come, first-served basis [5] - The launch date for the ICO has not been finalized, but it is confirmed to occur in November [4] Market Dynamics - Prop AMMs like HumidiFi are seen as a significant evolution in on-chain market microstructure, enabling larger trades at competitive prices compared to centralized exchanges [4] - The current ICO model is criticized for allowing manipulation by wealthy investors, who can exceed investment caps and secure larger token distributions [6][7]