- Uniswap introduced UniswapX to address its security and liquidity challenges.
- Other DEXs still lagged the project, despite the decline in network growth.
In a July 17 update, the decentralized exchange Uniswap [UNI] announced that it was improving its on-chain trading with an upgraded protocol called “UniswapX”. According to the blog post, the Hayden Adams-led project gave reasons to expand into a beta version.
Realistic or not, here it is UNI’s market cap in terms of BTC
First of all Uniswap noted that her goal is to go beyond working on Ethereum [ETH] was essential to the move. When Uniswap launched in 2018, its sole focus was on trading on the Ethereum network.
Integration of the “X” factor
However, the recent introduction of the Uniswap wallet is aimed at embracing exchange on multiple chains. And some of these include Polygon [MATIC] and the BNB chain.
As a result, the Automated Market Maker (AMM) felt it was necessary to develop UniswapX. The blog post further noted that the new protocol would allow gas-free exchange, better prices and maximum extractable value (MEV) protection. Uniswap explained that,
“With UniswapX, swappers can use the Uniswap interface without worrying about getting the best price and transactions are always transparently captured and handled on-chain.”
After the update, Santiment showed that Uniswap’s development activities were consistent with the announcement. At the time of writing, the stat had risen to 22.69.
The development activity measures the public GitHub repositories associated with a project. Therefore, the rise suggested that developers are committed to upgrades on the Uniswap network.
When it comes to network growth, the same cannot be said. At the time of writing, the network’s growth had slowed sharply. Typically, the metric measures adoption by looking at the influx of new addresses into an ecosystem.
New users are declining, but UNI remains king
When network growth picks up, it means a project’s traction is impressive. But the decline, as in the case of Uniswap, means that there were not many new addresses and transactions by new users were not excessive.
Source: Sentiment
However, one area where Uniswap has continued to excel is in the Decentralized Exchange (DEX) market category. At the time of writing, Token Terminal showed that Uniswap was the leading exchange in terms of fees generated.
How many Worth 1,10,100 UNIs today?
With $27.1 million earned in the past 30 days, Uniswap was way ahead of its peers, including Pancake Swap [CAKE] And Crooked finances [CRV]. For example, Curve’s fees within the same period were well below Uniswap’s at $2.2 million. PancakeSwap fared no better with $3.8 million.
Source: Token Terminal
As it stands, Uniswap could extend its dominance in the DEX market. And with UniswapX looking to improve on-chain liquidity locations for swappers, others may need to offer more or match the project.
