Journalist
Posted:
- Uniswap was the king of the DEXes after managing to beat rivals by a mile.
- Uniswap was struggling to maintain rising demand at the time of writing, despite signs of a local bottom.
Decentralized exchanges (DEXs) continue to see fierce competition even during slow market phases. Uniswap [UNI]in particular managed to maintain a strong lead over the competition.
How much are 1,10,100 UNIs worth today?
A key area that highlighted Uniswap’s dominance was the amount of fees collected by DEXs. A recent analysis from DEXes shows that Uniswap has blown the competition out of the water based on the fees it has collected over the past six months alone.
To put things into perspective, Uniswap’s daily cumulative fees for the past six months peaked at $255.5 million.
DEXes (decentralized exchanges) ranked by fees generated over the last 180 days:
1) Uniswap $255.5 million
2) PancakeSwap $31.6 million
3) SushiSwap $23.1 million pic.twitter.com/yDPgWQwItU— Reflexivity Research (@reflexivityres) September 27, 2023
PancakeSwap came in second with $31.6 million in daily cumulative fees. This meant that Uniswap’s rates were sevenfold higher than PancakeSwap’s. This difference highlighted the size of Uniswap’s lead in the market.
Most of the top DEXes, especially Uniswap, have benefited from the success and strong activity in Ethereum Layer 2 networks. Base is one of the newest additions to the list of L2 networks, and Uniswap was one of the first DEXes to embrace it. Fast forward to the present and Base has contributed a whopping $270 million to Uniswap in trading volume.
Uniswap was one of the first DEXs to launch on Base and now has a trading volume of over $270 million!#Scalesummer rounds off with @BuildOnBase
Don’t miss the last one @laag3xyz quest, hosted by Uniswap!
Something special is coming once you’ve done them all
https://t.co/vA5uDCgFoI
— Uniswap Labs
(@Uniswap) September 26, 2023
Uniswap recorded a strong increase in activity over the past six months
Uniswap’s impressive rate growth was certainly no coincidence, but rather the result of a strong increase in network activity and organic growth. A look at active addresses over the past six months revealed a sharp increase in network activity from mid-May to the last week of July. Similarly, the network saw its highest spike in transactions in June.
Source: Santiment
The increase in on-chain activity on the Uniswap DEX was mainly more pronounced Uniswap V3 transactions. The latter had its highest activity between June and August. Although the last peak in the third week of September confirmed that transaction activity was still high.
Source: Glassnode
How has the UNI token fared amid this increase in transactions and fees? Well, UNI was still struggling to secure enough bullish momentum to break out of the September low range. This is despite signs of accumulation in the second half of the month.
Is your portfolio green? View the Uniswap Profit Calculator
UNI exchanged hands for $4.24 at the time of writing. The slight premium to the current monthly low confirmed that there was substantial accumulation earlier this month. Furthermore, the Money Flow Index (MFI) and the Relative Strength Index (RSI) supported these findings.
However, it was quite clear that the bulls were not strong enough to blast out of the current bottom range.
Source: TradingView
