Layer 2

Uniswap DEX comprises 37% of Ethereum L2 volume

Published

1 year ago

April 29, 2024

Ethereum’s main decentralized change, Uniswap, is contributing considerably extra quantity to layer 2 blockchains in comparison with exercise two years in the past.

The decentralized change (DEX) accounts for about 37% of whole layer 2 buying and selling quantity and runs on prime of crypto’s second largest blockchain, Ethereum (ETH).

21.co-researcher Tom Wan famous that the platform’s L2 volumes grew greater than 650% in 24 months, from about $4 billion in 2022 to greater than $30 billion this 12 months. The analysts added that this pattern might strengthen additional if extra high quality protocols had been launched on layer 2 networks reminiscent of Arbitrum, Coinbase’s Base and Optimism.

“L2s have seen elevated financial exercise, particularly Base and Arbitrum, which signify 82% of whole L2 quantity on Uniswap. I count on L2 quantity dominance on Uniswap to proceed to develop to 50% by the top of this 12 months.”

Tom Wan21.co-researcher

Knowledge confirmed that the change solely contributed 2.9% of the full quantity on altcoin L1s, however Wan believed that this narrative might see a shift sooner or later. Wan defined that high-performance EVM-enabled L1s mixed with a multichain enlargement technique might permit the DEX to seize extra quantity on networks like Sei and Monad.

UNI DEX quantity sheet | Supply: Tom Wan, 21.co by way of Dune Analytics

Crackdown on Uniswap

Uniswap (UNI) was the primary DEX on Ethereum and stays the biggest on-chain buying and selling platform on the crypto L1 blockchain. The protocol boasts a cumulative buying and selling quantity of greater than $2 trillion throughout 17 chains. DefiLlama states that customers have additionally deposited greater than $5.5 billion in worth deposits.

READ Coinbase's Base faces brief outage

The Brooklyn-based crypto companies firm, based in 2017 by Hayden Adams, is now dealing with potential enforcement motion from the US SEC, which is at the moment embroiled in a broad crackdown on the crypto trade.

As crypto.information reported, the SEC has issued Adams’ firm a Wells Discover, and the DEX plans to defend itself in opposition to a “disappointing however not shocking” resolution.