On all cryptocurrency networks, speed is an essential factor. The faster a transaction occurs, the better the decentralized exchange. Compared to other alternatives, is Uniswap slow?
In this article, we take a look at:
- The speed of Uniswap
- What affects the speed of Uniswap’s network
- How to speed up transactions on Uniswap and
- How Uniswap measures up against PancakeSwap
Is Uniswap Slow?
There have been complaints in the recent past about the speeds on the Uniswap network. Although not confirmed by the developer team, the slow speeds occur because of high Ethereum network traffic.
Ethereum network has low transaction speeds, and the problem extends to the Uniswap platform.
But with the imminent launch of the Serenity update, you should expect much faster speeds as ETH 2.0 will increase TPS speeds.
Currently, Ethereum manages 15TPS, but ETH2 will take it to 100,000TPS. This major shift will improve the speeds of the entire Ethereum ecosystem.
How Is Crypto Speed Measured?
There are two ways to measure the speed of crypto: transactions per second and block confirmation time.
Transactions per second: This number is a measure of network’s scalability. It also determines how quickly tokens move between wallets.
Confirmation time: A crypto’s consensus mechanism is a significant player in determining the block production time. The most common mechanisms are PoW and PoS.
Other factors like the crypto network, network load, and block production methods also affect a crypto’s speed.
Why Is Uniswap So Slow?
Because Uniswap is built on ERC20, its transactions of ETH, ERC20 tokens, and BTC take an average of 20 to 30 minutes to complete. However, factors like congestion on the Ethereum network or the size of the transaction might extend the period.
One way to improve the transaction speeds of ETH is to increase the transaction’s gas. However, this option is only viable if the network is facing congestion. Adding gas fees to an ETH transaction incentivizes miners to prioritize it.
Learn more: Does Uniswap Use Chainlink?
Which Is Better, Pancake Or Uniswap?
Today, by traded volumes, PancakeSwap and Uniswap are the most popular DEXes in the world. They offer different services. Let’s explore them below:
PancakeSwap runs on the Binance Smart Chain (BSC). Launched in late 2020, It’s an Automated Market Maker that processes trades and manages liquidity providers
Like Uniswap, you can use some common crypto wallets like Token-Pocket, Trust Wallet. The BSC lets participants access and trade any BEP20 tokens or BNB tokens.
Founded in November 2018, Uniswap is a decentralized exchange based on the Ethereum network. Uniswap enables you to trade ETH and all ERC-20 tokens on your Fortmatic or Coinbase Wallet. It also supports other crypto wallets like MetaMask.
Like most decentralized exchanges, Uniswap uses liquidity pools to operate and trade digital assets. It also uses AMM technology to manage rewards in the system.
Pancake uses CAKE as its native token. CAKE facilitates staking and also serves as a governance token.
You can provide liquidity, buy CAKE as a token, or stake it to earn CAKE. As a trader, holding CAKE rewards you with more tokens as an appreciation for keeping the network active.
Uniswap’s token is UNI. It serves the primary purpose of governance on the Uniswap platform.
If you want to invest in either Uniswap or PancakeSwap based on market cap, Uniswap will give you more sense of asset security.
Uniswap has a list of more than 1600 tokens on its Uniswap DEX. Pancake, however, accommodates almost 200 crypto tokens on its platform.
So, if you want a decentralized exchange that offers a broader variety of tokens to swap or trade, Uniswap is better.
Total Volume Locked
All decentralized exchanges rely on total volume locked (TVL) to showcase the strength of their base value. Today, Uniswap has a total volume of $5.15B, making it a DEX with the most TVL. On the other hand, PancakeSwap has a TVL of $3.01B.
Even though Uniswap holds the crown now, PancakeSwap shows potential to match Uniswap TVL in the future. Therefore, if you look to invest or use a DEX according to the amount of TVL, Uniswap is a great DEX.
Uniswap has to spend several ETH for all the transactions that occur during trading or swapping tokens. ETH fees rise every day, making it expensive to use Uniswap.
PancakeSwap offers lower gas fees of 0.25% for every trade, which is better than Uniswap.
If you want a platform that saves you gas fees, PancakeSwap will be a great decentralized exchange partner.
As of this writing, PancakeSwap has more monthly active users than its counterpart Uniswap. PancakeSwap has an estimated 1.7million active monthly users, while Uniswap is just shy of 1.6million active users.
What Cryptocurrencies Are Faster Than Uniswap?
Many cryptocurrencies are faster than Uniswap. Because Uniswap runs on the Ethereum blockchain, it can’t go higher than the current 15TPS. Even so, keep in mind that factors vary from blockchain to blockchain.
Here are some cryptos with their TPS that outcompete the Uniswap on speed:
- Polkadot – 65000 TPS
- Stellar – 3000 TPS
- Cardano – 257 TPS
- IOTA – 1500 TPS
- EOS – 3000 TPS
Uniswap shares Ethereum’s speed challenges,especially because it’s built on the Ethereum blockchains. With ETH 2.0 these speeds will increase. However, until then, adding gas to your transactions will often speed it up.
Uniswap and PancakeSwap are competitors, but PancakeSwap runs on the BInance Smart Chain.