The decentralized protocol Uniswap, built on the Ethereum network, set a new milestone after reaching a weekly trading volume of $10 billion.
For the first time since its launch, the decentralized exchange Uniswap recorded more than $10 billion in trading volume within a single week. Protocol founder Hayden Adams announced the milestone on Twitter, noting that trading volume has more than doubled in less than six months.
🔥 @Uniswap weekly trading volume just passed $10b for the first time!!!
👀 $10b/week is over $0.5 trillion per year pic.twitter.com/ZibcDT9Zob
— hayden.eth 🦄 (@haydenzadams) April 20, 2021
Despite persistently high Ethereum network fees in recent months, Uniswap has continued to attract growing activity. According to gas fee tracker Etherscan, a token swap on Uniswap now typically carries an average fee of over $72. Even with these substantial costs, Uniswap’s trading volumes have remained strong.
The exchange has also seen a rise in the number of traders accessing and using the platform. Adams predicted that if the current pace holds for the rest of the year, Uniswap could reach more than $500 billion in trading volume for the year.
DeFi Llama ranks Uniswap as the second-largest decentralized exchange by total value locked (TVL), behind PancakeSwap, which runs on Binance Smart Chain. Overall, Uniswap sits in fifth place in the TVL rankings and accounts for nearly 7% of DeFi’s total locked value.
Uniswap’s native token, UNI, rose by 8.7% in the last 24 hours and was trading at roughly $32.25 according to CoinGecko at the time of reporting. The platform is expected to continue expanding, particularly with the upcoming release of Uniswap V3, which aims to introduce several enhancements.
One notable planned update is a multi-fee tier structure designed to compensate liquidity providers based on their risk profiles and concentrated liquidity positions. This change intends to improve capital efficiency and give liquidity providers more flexibility in managing exposure.
Uniswap is moving rapidly toward the full launch of V3. In an announcement published today on GitHub, Uniswap Labs confirmed that both core and periphery smart contracts have been deployed to Ethereum testnets. The team said contracts were deployed to Goerli, Rinkeby, Kovan, and Ropsten as preparations continue for the official launch targeted for May 5.