Uniswap, one of the prominent figures in the world of cryptocurrency, is garnering significant attention with its success on the Ethereum-based Arbitrum Layer-2 network. Known as one of the largest decentralized exchanges (DEX) in the world, Uniswap is now approaching a significant milestone in total value locked (TVL).
Massive Trading Volume
According to data published by Uniswap Labs on Dune Analytics, Uniswap on Arbitrum is on track to reach an astonishing $150 billion in total trading volume. This development is seen as a reflection of the explosion in the decentralized finance (DeFi) ecosystem.
As of April 25th, Uniswap has already surpassed over $146 billion in total trading volume on Arbitrum alone. This figure has been steadily increasing since the integration of the platform with Arbitrum in June 2021.
Uniswap’s trading volume, which was initially limited, steadily grew during the crypto bear market of 2022. However, there was a sharp rise, particularly from October 2023 onwards, which signaled the crypto boom that took Ethereum above $4,000 in the first quarter of 2024.
Rise Linked to DeFi Users
The increasing popularity of Uniswap on Arbitrum is also linked to the growing number of DeFi users flocking to the popular DEX. One of the factors behind this is Arbitrum’s lower transaction fees compared to the Ethereum mainnet.
Arbitrum provides traders with a positive experience by offering low transaction fees and a scalable environment. A recently implemented new transaction format called “blob,” introduced by Ethereum developers, also contributes to enhancing this experience.
Wells Notice Adds Uncertainty to Uniswap
Uniswap Labs plans to release Uniswap V4 after the deployment of Dencun. This update aims to make the DEX more efficient and flexible. However, the decision of the United States Securities and Exchange Commission (SEC) to issue a Wells notice creates some uncertainty. Founder Hayden Adams stated that they are ready to fight against the SEC’s actions.
At the time of writing, the UNI price is trading at $7.88. The UNI price had approached $17 before it started to decline. However, the drop in price stands out after the correction. Crypto analysis firm Santiment had commented that UNI and other altcoins are in the opportunity zone.
Disclaimer:
The information provided in this article is not investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and should conduct their own research.
