Uniswap Processes Over $2 Trillion On Ethereum: UNI Bull Run Inevitable?
October 23 2024 - 12:30AM
NEWSBTC
Uniswap, the leading decentralized exchange (DEX) on Ethereum, is
building and growing, looking at the number of processed volumes
over the years. Uniswap Processes Over $2 Trillion On Ethereum
Since launching in late 2018, on-chain data shows that the DEX has
processed over $2 trillion in cumulative volume on the Ethereum
mainnet. Related Reading: Top Crypto Analyst Unveils Strategy To
‘Make Millions’ By March 2025 The steady climb in cumulative volume
points to Uniswap’s growth over the years and the team’s dedication
to ensuring that the platform functions as originally designed.
Unlike centralized exchanges like Binance or Coinbase, Uniswap
relies on smart contracts for swapping. All transactions are
initiated from a non-custodial wallet such as MetaMask, ensuring
the holder retains control of all assets. No transaction is
approved unless the wallet owner authorizes it. For the unique
value proposition Uniswap presents, the platform continues to grow
by leaps and bounds. The latest data from DeFiLlama reveals that
the DEX manages over $4.9 billion worth of assets. At this level,
Uniswap is the sixth largest DeFi protocol, cementing the dominance
of Ethereum-based dapps. While users can choose from three protocol
versions, the latest iteration, v3, is the largest, managing over
$3 billion. Uniswap v3 was the first DEX to introduce concentrated
liquidity to improve capital efficiency. Besides v3, users can swap
on Uniswap across multiple chains, including the BNB Chain and
Avalanche. However, DEX trading via Uniswap is popular on Ethereum,
where the exchange manages over $3.9 billion. DeFi Dominance, UNI
To $12? As DeFi gains traction and more traders opt to swap
trustlessly, Uniswap will likely process even more transactions.
Most importantly, the DEX may dominate DEX trading on Ethereum
layer-2s, looking at trends. DeFiLlama data reveals that the dapp
has a total value locked (TVL) of over $277 million. Related
Reading: Bitcoin Signal That Led To At Least 70% Surge Has Formed
Again Considering the role of the DEX on Ethereum and the fact that
it is among the biggest contributors of gas fees, UNI could benefit
in the coming sessions. From the daily chart, UNI is posting
impressive higher highs and approaching a key resistance level.
After dumping to $4.7 in early August, the token has almost doubled
in valuation and is on the cusp of printing fresh Q4 2024 highs. A
break above $8.5 could trigger a wave of demand that may see UNI
float to $12. Feature image from Adobe Stock, chart from
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