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).
Enormous Figures in Total Trading Volume
According to data published by Uniswap Labs on Dune Analytics, Uniswap on Arbitrum is on track to reach an astounding $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 $146 billion in total trading volume on Arbitrum alone. This figure has steadily increased since the platform’s integration with Arbitrum in June 2021.
Uniswap’s initially limited trading volume has steadily grown during the crypto bear market in 2022. However, there has been a sharp rise since October 2023, signaling the precursor to 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 DeFi users flocking to the popular DEX. One of the factors behind this trend 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. Recently, the introduction of a new transaction format called “blob” by Ethereum developers has further improved this experience.
Wells Notice Adds Uncertainty for Uniswap
Uniswap Labs plans to release Uniswap V4 after the implementation of Dencun. This update aims to make the DEX more efficient and flexible. However, the decision by 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 starting to decline. However, the drop in price is evident after the correction. Crypto analytics firm Santiment had commented that UNI and other altcoins are in a buying zone.
Disclaimer: The information provided in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.