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Uniswap v3 already exceeding expectations

Photo of: Joseph Stone
by Joseph Stone

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

No more than other tokens, Uniswap’s UNI has not escaped the sharp decline in the cryptocurrency market capitalization. Nevertheless, the fundamentals remain very real for the decentralized exchange, Ethereum’s flagship.

Indeed, DEX can boast of a successful migration and launch of Uniswap V3. In the space of only two weeks, it crushed SushiSwap, until then the 2nd largest Ethereum exchange in volume.

That position now falls to Uniswap v3, which ranks just behind Uniswap v2. According to Messari’s Ryan Watkins, the latest DEX iteration was reaching 81% of V2’s 24-hour trading volume.

As a result, on May 16, v3 had 15% more weekly volume than SushiSwap, at $6.5 billion versus Sushi’s $5.6 billion. Next in the hierarchy are 0x ($3 billion), Curve ($1.9 billion) and Balancer ($1.2 billion).

But how to explain such rapid adoption of Uniswap V3. For Ryan Watkins, the DEX has not been making thunderous announcements to steal deals from its competitors and support its growth.

“Uniswap V3 has reached 81% of the volume of Uniswap V2. And that’s without liquidity incentives, passive fund managers, or even its upcoming layer-2 rollout,” the expert points out.

Combining its two versions, Uniswap now accounts for more than 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).

For comparison, this ratio is 20% for Uniswap v2, 16% for SushiSwap, 6% on Bancor, and finally 5% on Balancer. For the founder of Uniswap, Hayden Adams, there are many reasons to be happy.

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

And Uniswap has not yet played all its cards. An upcoming major upgrade is on its roadmap. The DEX will migrate to Layer-2 architecture, which will allow it to lower fees for users.