Uniswap Labs Records a Boom in Multichain Volumes

Uniswap is a decentralized exchange born in 2018 on Ethereum. It was one of the first decentralized exchanges in the world, and for some time now it has dominated both in terms of volumes and TVL in this specific sector.

Uniswap, a decentralized exchange (DEX), has seen a surge in multichain trading volumes on Ethereum's layer-2 (L2) solutions.

Uniswap Labs, the company behind the DEX's development, highlighted this growth in a recent post on Thursday.

Uniswap's presence spans 19 blockchains, encompassing L2s like Arbitrum, Polygon, Optimism, and Base, as well as alternative chains such as BSC and Avalanche.

Uniswap's overall volumes on Ethereum L2s have seen a remarkable ascent. Initially, these volumes were negligible, but they began to surge following the peak of the last major bull run in late 2021.

This growth was gradual until January 2023, when a surge propelled the total monthly L2 volumes to over $100 billion.

Reaching $100 billion took 22 months, but subsequent milestones were achieved rapidly: 10 months to $200 billion and just 3 months to $300 billion in total monthly volumes.

This second surge in 2024 is likely attributed to the Dencun update on Ethereum, which significantly reduced fees for on-chain L2 transactions.

Uniswap's TVL on Ethereum currently stands at around $5 billion, with daily trading volumes on this chain at approximately $700 million.

In contrast, on Arbitrum, Uniswap's TVL is roughly $300 million, while daily trading volumes exceed $150 million.

This imbalance, with lower TVL but higher volumes on L2s compared to Ethereum, indicates a preference among traders for these lower-fee chains.

Uniswap's daily trading volumes on Base, the fastest and cheapest L2, are over $240 million, despite its TVL being only $321 million.

Base's efficiency enables Uniswap to achieve trading volumes that are only three times lower than on Ethereum, despite a TVL that is fifteen times smaller.

Uniswap's presence on BSC is marginal, with less than $15 million in daily trading volumes, and it is practically irrelevant on Avalanche.

Overall, the world's largest DEX is approaching $2 billion in daily trading volumes, with a TVL exceeding $5.8 billion.

While Ethereum remains the primary chain for Uniswap, most of the trading volumes are now generated on the combined L2s.

Uniswap Labs is a private company that develops the code for the Uniswap protocol, which is a decentralized public smart contract.

This setup ensures that Uniswap Labs does not directly control Uniswap but rather governs its development and the release of new versions.

The Uniswap protocol is now in its third iteration, with Uniswap Labs working on the fourth version simultaneously.

Uniswap also boasts its native token, UNI, which experienced a boom in early 2021, driving its price to all-time highs of almost $45.

After a prolonged bear market that saw UNI's price plummet to below $4 by October 2023, a new bull run commenced, uplifting the token's price to almost $8 by the end of the year.

During 2024, a mini-bubble inflated on UNI's price between February and March, with a rapid rise above $15 followed by an equally swift plunge to below $7.

However, $7 is still significantly higher than the $4 at which the bull run began, and the token has rebounded since late May.

This recovery has brought UNI's price back to around $11, which is close to the 2024 highs if we exclude the mini-bubble.

The current price level is also comparable to that of April 2022, prior to the Terra/Luna implosion, suggesting that UNI's bear market is now over.

News source：https://www.kdj.com/cryptocurrencies-news/articles/uniswap-labs-records-boom-multichain-volumes.html

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