Uniswap V3 wins all votes and wins over Ethereum

By: Bharggavi Ssayee

May 23, 2021 7:20 PM

DEX Uniswap version 3 is experiencing rapid adoption with a transaction volume equivalent to 81% of Uniswap V2.

Like any other tokens, Uniswap's UNI is not immune to the sharp drop in cryptocurrency market capitalization. Nonetheless, the fundamentals remain very real for the decentralized exchange, the star of Ethereum.

DEX can indeed claim to have successfully migrated and launched Uniswap V3. In just two weeks, it crushed SushiSwap, until then the 2nd Ethereum exchange by volume.

Explosion of transactions during the crypto crash

This position now falls to Uniswap v3, which ranks just behind Uniswap v2. According to Messari's Ryan Watkins, the latest version of DEX reached 81% of V2's 24-hour transaction volume.

Thus, on May 16, v3 posted a weekly volume 15% higher than that of SushiSwap, that is to say 6.5 billion dollars against 5.6 billion for Sushi. Next in the hierarchy are 0x ($ 3 billion), Curve ($ 1.9 billion) and Balancer ($ 1.2 billion).

But how do you explain the rapid adoption of Uniswap V3. For Ryan Watkins, the DEX has not yet multiplied the thunderous announcements to win transactions from its competitors and support its growth.

“Uniswap V3 reached 81% of Uniswap V2 volume. And this, without liquidity incentives, without passive fund managers, or even without its upcoming deployment in layer-2 ", underlines the expert.

Costs that will drop thanks to Layer-2

Combining its two versions, Uniswap now accounts for over 60% of Ethereum DEX transactions. And this is not the only indicator illustrating the performance of the DeFi protocol. The v3 achieves a turnover of 104% of its TVL (Total Value Locked).

By way of comparison, this ratio is 20% for Uniswap v2, 16% for SushiSwap, 6% on Bancor, and finally 5% on Balancer. For Uniswap founder Hayden Adams, there is no shortage of reasons for celebration.

On Twitter, for example, he reported that the daily volume of v3 had increased by 3.3 times its TVL during the crash marked by a decline in Bitcoin to $ 30K. Uniswap v3 has thus processed more than 2.6 billion dollars of transactions in 24 hours.

And Uniswap has yet to show off all of its cards. A next major update is on its roadmap. The DEX will migrate to Layer-2 architecture, which will allow it to lower costs for users.