- Ethereum is highly dependent on the routers provided by Uniswap.
- The average ETH gas used increased, but the number of new addresses on Uniswap decreased.
Of all blockchains in the crypto sector Ethereum [ETH] is the one with the most usage scenarios. This is also due to the proliferation of applications it has under its belt.
Read Ethereums [ETH] Price prediction 2023-2024
However, Token Terminal showed that the ETH economy would not have reached its current peak without the contributions of certain contracts.
Ethereum has the Uniswap routers to thank
According to the blockchain data aggregator, many projects include Uniswap [UNI], Tether [USDT]And Arbitration [ARB] were some of the networks that kept the Ethereum blockchain alive.
The top 10 contracts that keep the ETH economy running:
Uniswap: V2 router
Uniswap: universal router
Tether: USDT
MEV bot: 0x6b7…A80
Uniswap: V3 universal router
Arbitrum: Sequencer inbox
Uniswap: V3 router 2
MetaMask: Switch router
Blur: Marketplace proxy 1
zkSync era:… pic.twitter.com/dIytV3Ddf8— Tokenterminal (@tokenterminal) October 28, 2023
However, of the top 10 contracts Uniswap seemed to be the project with the highest contribution. A look at the data showed that Uniswap’s routers, including the V2, V3, and universal routers, have made a huge contribution to the Ethereum economy.
A router is the core of the Uniswap protocol. It is used to create new pair contracts. As for the Ethereum network, the Uniswap router provides users with the best gas-adjusted quarter when splitting transactions or executing transactions.
This therefore means that, without Uniswap’s input, the transaction costs when carrying out transactions with ETH may have been higher. But has this affected Uniswap’s on-chain operations in any way?
Slow growth and rising costs
According to SantimentUniswap’s network growth was down to 76. Network growth measures the number of new addresses interacting with a project. When the statistic increases, it means that new users of the Uniswap protocol are transacting at a higher rate.
However, Uniswap’s network growth declined, as mentioned earlier. This is a sign that traction on the network was low and adoption was far from peaking. On the other hand, volume on Uniswap has increased noticeably recently.
Source: Santiment
This increase in volume suggests that there has been an increase in the number of transactions, likely mainly involving ETH and other Ethereum-linked tokens. As for Ethereum, on-chain data showed that development activity has increased.
For context, the development activity measures public code obligations, which are driven to ensure good working conditions for a project. At the time of writing, Ethereum development activity stood at 3.68. This increase indicated that developers were committed to preserving Ethereum network healthy.
Realistic or not, here it is UNI’s market cap in terms of ETH
Moreover, the data shows that average gas consumption has increased recently. At the time of writing, the ETH gas used was 19.27 Gwei. Gwei is the unit of Ether used to specify transaction costs on the blockchain.
Source: Santiment
The increase in gas used means that the demand for ETH has increased. This also means that Uniswap routers are actively working to keep Ethereum in good shape.
