UNI, the native token of Uniswap, one in every of the highest decentralized exchanges (DEXes), is under immense selling pressure. From the every day chart of the UNIUSDT, the token is down 62% from March highs, though prices have stabilized up to now few trading weeks.
To place within the numbers, chart data shows that it’s up nearly 35% from August lows, absorbing selling pressure.
UNI Is Down But Uniswap Generates $50 Million In Revenue So Far
Though UNI is much off from all-time highs, shaving nearly 85% from 2021 peaks, other exciting developments might help prices in the long run. Token Terminal data on August 25 shows that the DEX has generated $50 million in revenue thus far.
Uniswap allows traders to trustless swap tokens on multiple platforms and blockchains. Originally, it launched on Ethereum in November 2018 before being deployed on the BNB Chain and various layer-2 platforms for Ethereum, including Arbitrum and Optimism.
Unlike Binance, which is custodial, Uniswap users only need a non-custodial wallet to attach and swap. All trades are smart contracts-led and without an intermediary. At the identical time, there may be a broader pool of tokens, a few of that are unavailable on top centralized exchanges like Binance.
The benefits offered by Uniswap have seen the protocol expand the assets under management to over $4.73 billion, in keeping with DeFiLlama. As of August 26, Uniswap is out there on over ten platforms, however the protocol manages over $3.8 billion on Ethereum.
Cumulatively, DeFiLlama data has generated over $2.3 billion in fees. All these fees are from swaps on Ethereum and all other platforms. Within the last 24 hours, Uniswap has generated over $854,000 in fees.
Is The Future Brilliant, Developers Prepare For V4
As crypto prices expand, it’s also highly likely that DeFi activity will rise. Because the recovery from mid-October 2023 to the March 2024 high, DeFi total value locked (TVL) greater than doubled. This expansion reflects rising interest and confidence from the community. In line with DeFiLlama, DeFi TVL across all networks stood at around $40 billion in October but rose to over $106 billion by March 2024.
As DeFi TVL rises, Uniswap will enable more swaps, increasing its fees. Furthermore, the DEX will probably be a go-to platform because it enhances its protocol.
Earlier this month, Uniswap Labs, which is developing the protocol, announced a $2.35 million prize pool for developers. The fund goals to reward developers who pick flaws on Uniswap v4 before rollout. Once live, the new edition of the DEX will offer latest features, including custom oracles and Hooks for much more flexibility.